How GTCO made ₦327.4bn profit in first half of 2023 – Segun Agbaje

Segun Agbaje

The group chief executive officer of Guaranty Trust Holding Company Plc (GTCO) Segun Agbaje has explained how the company recorded profit before tax (PBT) of ₦327.4billion for the period ended June 30, 2023.

The company stated its audited consolidated and separate financial statements to the Nigerian Exchange Group (NGX) and London Stock Exchange (LSE).

The group reported ₦327.4billion PBT, representing an increase of 217.1% over ₦103.2billion recorded in the corresponding period ended June 2022. The group’s loan book (net) increased by 22.8% from ₦1.89trillion recorded as at December 2022 to ₦2.32trillion in June 2023, while deposit liabilities grew by 37.0% from ₦4.61trillion in December 2022 to ₦6.32trillion in June 2023.

The group’s balance sheet showed total assets and shareholders’ funds closing at ₦8.5trillion and ₦1.2 trillion respectively. Full Impact Capital Adequacy Ratio (CAR) closed at 24.7%, while asset quality was sustained as IFRS 9 Stage 3 Loans improved to 4.6% in June 2023 from 5.2% December 2022. However, Cost of Risk (COR) closed at 3.7% from 0.6% in December 2022 owing to worsening macros which caused significant increase in ECL variables.


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Commenting on the results, Agbaje said: “Our half year audited results reflect the strong business fundamentals underpinning the GTCO franchise, the quality of our past decisions in future proofing our balance sheet for challenging times, and the sound practices that guide our day-to-day operations.

“Despite the challenges in the business environment, notably inflationary pressures and exchange rate fluctuations, we are starting to see the gains in the transformation of our businesses following our transition to a Holding Company structure. Improved profitability and a solid performance across key metrics reflect efficiencies and justify the investments we continue to make in technology, product development, and our people.”

He further said, “We recognise the impact prevailing economic and market conditions have on people and livelihoods and we remain committed to seeking better outcomes for our customers by ensuring that our products and service offerings support our customers and their businesses through their evolving realities, whilst also taking every opportunity to optimise stakeholder value.”