Guaranty Trust Holding Company Plc (GTCO) has reported a remarkable financial performance for the fiscal year ending December 31, 2023. The company disclosed a Profit Before Tax of N609.3 billion, marking an impressive surge of 184.5% compared to the previous year’s figure of N214.2 billion.
The announcement was made in the audited financial statements submitted to both the Nigerian Exchange Group (NGX) and the London Stock Exchange (LSE) in Lagos. Notably, GTCO’s loan book (net) witnessed a significant uptick of 31.5%, reaching N2.48 trillion by December 2023 from N1.89 trillion in December 2022. Moreover, deposit liabilities soared by 63.7% to N7.55 trillion, up from N4.61 trillion in the preceding year.
Despite economic challenges, GTCO’s balance sheet remained robust, with total assets and shareholders’ funds closing at N9.7 trillion and N1.5 trillion, respectively. The Full Impact Capital Adequacy Ratio (CAR) stood at a healthy 21.9%, while the asset quality was sustained, with the International Financial Reporting Standard (IFRS) nine stage three loans improving to 4.2% in December 2023.
However, there was a notable increase in the Cost of Risk (COR), rising to 4.5% from 0.6% in December 2022, attributed to deteriorating macros leading to a significant rise in Expected Credit Loss (ECL) variables.
Commenting on the impressive results, Mr. Segun Agbaje, the Group Chief Executive Officer of GTCO, acknowledged the challenging operating environment in 2023. Despite this, the company’s robust business model, coupled with synergies across its banking and non-banking sectors, contributed to its strong performance. Agbaje highlighted the successful expansion of GTCO’s banking foothold and the development of resilient businesses such as HabariPay, Guaranty Trust Fund Managers, and Guaranty Trust Pension Managers.
He emphasized the company’s commitment to innovation and customer satisfaction, exemplified by the successful redesign and upgrade of its mobile banking application, GTWorld. Looking ahead, Agbaje expressed confidence in GTCO’s ability to navigate future challenges and capitalize on opportunities, leveraging its strengths to drive sustainable growth and deliver long-term value to stakeholders.
