GTBank Records Highest Profit in 11 Years as Customers’ Deposit Hit N4.91trn After 3 Months

• GTCO Plc has reported that it made its highest profit after tax in 11 years in the first quarter of 2023
• There was also an improvement in how much the company earned from profit before tax in the first three months of the year
• The CEO of GTCO Plc, Segun Agbaje, and a stock expert have provided insight into the company's performance

Guaranty Trust Holding Company Plc (GTCO), the parent company of Guaranty Trust Bank (GTBank), has recorded a profit after tax of N58.16 billion in the first quarter of 2023.

The amount is a 34.62% increase when compared to N43.207 billion reported in the same period of 2022.

GTB's impressive profit recorded from activities from January to March is the highest reported in 11 years and also markets a bounce back from two years of sluggish growth.

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Details of GTB's impressive performance

According to its financial result submitted to the Nigerian exchange, the group reported profit before tax of N74.1 billion, representing an increase of 36.5% over N54.3 billion recorded in the corresponding period that ended in March 2022.

The group’s loan book (net) dipped by 1.5% from N1.88trillion recorded as of December 2022 to N1.86trillion in March 2023, while deposit liabilities increased by 9.9% from N4.61trillion in December 2022 to N5.07trillion in March 2023.

Further checks show that customer deposits increased to N4.91 trillion in Q1, 2023, from N4.48 trillion in Q1, 2022.

In addition, GTCO remitted N15.92 billion as income tax to the government.

GTB profit after tax in last 11 years first quarter

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CEO reacts to GTBank's impressive performance

Segun Agbaje, the Group Chief Executive Officer of Guaranty Trust Holding Company Plc (GTCO Plc), remarked on the results:

“The results for the first quarter demonstrate the robustness of the GTCO brand, the soundness of our decision-making process, and the positive outcomes of our endeavors to establish ourselves as a preeminent financial services provider in Africa"

"Despite severe headwinds, we delivered a decent performance, recording growth across key revenue lines. We are also not relenting in our resolve to better outcomes for people and businesses within our financial ecosystem.”

He further described it as another exciting year.

Expert speaks on drivers of GTBank's performance

In his reaction to GTB's performance, Abdulrauf Aremu Bello, the Team Lead of Investment Research & Advisory at WSTC Financial Services Limited, noted that:

"With a net profit of N58 billion in the first quarter, Guaranty Trust is on course to deliver a N200bn net profit."

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He shed more light on GTB's performance and noted that higher asset yields lifted income levels while operating efficiency kept costs at bay.

He stated:

"The two levers drove the profit performance. There are still grey areas around the Group's balance sheet and it is somewhat evident in the net margins but this should at least give their shareholders some comfort."

List of Nigeria's most valuable banks after Q1, 2023

In another report, the Nigerian banks with the highest market value for the first quarter of 2023 have been unveiled.

Zenith Bank and GT Bank retained their positions as the most highly valued commercial banks in the Nigerian market, which they held at the beginning of the year.

However, First Bank experienced a decrease in its market value during the same period.

Source: Legit.ng