GTCO Hauls In Profit Of N367Bn, A 181.87% Increase
The Oasis Reporters
October 27, 2023
Guaranty Trust Holding Company Plc has reported a 181.87 per cent rise in its profit after tax, to N367.42bn for the period ended September compared to N130.35bn as of September 2022.
This was stated in the Unaudited Consolidated and Separate Financial Statements submitted to the Nigerian Exchange Limited on Tuesday.
The rise was driven by net interest income which rose by 56.85 per cent in the period under review to N297.54bn, Net fees and commission income rose by 17.71 per cent to N82.48bn.
The lender’s foreign exchange revaluation gains also appreciated significantly as it moved from a loss position of N7.39bn as of September 2022 to a gain of N334.35bn.
Guaranty Trust Holding Company PLC also known as GTCO PLC is a multinational financial services group, that offers retail and investment banking, pension management, asset management and payments services, headquartered in Victoria Island, Lagos, Nigeria.
GTCO Plc was created in July 2021 following the corporate reorganization of Guaranty Trust Bank PLC (or GTBank) into a Holding Company.
Earlier in September, the Central Bank of Nigeria directed Deposit Money Banks to stop using gains from their foreign exchange revaluation for dividends and operational expenditures in a bid to shore up the Naira.
In a circular, the central bank said changes to the currency regime have impacted banks to varying degrees and that “banks are required to … set aside the FCY revaluation gains as a counter-cyclical buffer to cushion any future adverse movements in the FX rate.”
Meanwhile, the nine-month report stated that GTBank Nigeria had restricted balances of N1.297tn with the CBN as of 30 September 2023 (December 2022: N1.014tn), which is the CBN cash reserve requirement. The cash reserve ratio represents mandatory total Naira deposits which should be held with the Central Bank of Nigeria as a regulatory requirement.
In its half-year report, GTCO reported profit before tax of N327.4bn, representing an increase of 217.1 per cent over N103.2bn recorded in the corresponding period ended June 2022.
The Group’s loan book (net) increased by 22.8 per cent from N1.89tn recorded as of December 2022 to N2.32tn in June 2023, while deposit liabilities grew by 37.0 per cent from N4.61tn in December 2022 to N6.32tn in June 2023.
GTCO operates in Nigeria, West Africa, East Africa, and the United Kingdom in activities involving Payment, Funds Management, and Pension Fund Administration.
GTCO Plc’s reorganisation means it will now offer more services beyond banking; with a payments business being top of mind for the group.[2] Under its old structure, it could not have run non-lending businesses because a 2010 regulation[3] by the Central Bank of Nigeria (CBN) mandated banks to stop operating their non-banking subsidiaries. They either had to divest from non-core lending service or restructure as a holdings company.
Its new businesses include payments, pension management, asset management, and its existing banking business. GTCO’s banking subsidiary in Nigeria, Guaranty Trust Bank Limited is Nigeria’s most valuable bank by market value with its most recent market valuation at N840.26 billion.
Guaranty Trust Holding Plc original started as Guaranty Trust Bank, and it was founded in 1988 by over 35 young Nigerians in their thirties, spearheaded mostly by Tayo Aderinokun and Fola Adeola, but also included Femi Pedro, Gbolade Osibodu, Femi Akingbe, Akin Opeodu and others.
