NGX: GT Bank Records High Profit, Gives Credit to New Business Structure - The Top Society

NGX: GT Bank Records High Profit, Gives Credit to New Business Structure

by Blessing Emmanuel


Global leading commercial Guarantee Trust Holding Company, GTCO, otherwise known as GT Bank, has recorded an upsurge in its annual profit.

This was contained in the just released Audited Consolidated and Separate Financial Statements for the period ended June 30, 2023.

GT Bank

The Group Chief Executive Officer, Segun Agbaje said the institution’s profit upsurge was as a result of its transition to a Holding Company structure, despite the exchange rate crisis.

According to the financial report, GT Bank made about 217.1% higher profit in June 2023, as compared to June 2022.

The financial audit report reads:

Profit before tax of ₦327.4billion, 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 remained well structured and resilient with total assets and shareholders’ funds closing at ₦8.5trillion and ₦1.2 trillion, respectively. Full Impact Capital Adequacy Ratio (CAR) remained very strong, closing 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.

Commending the progressive report, Agbaje said the discipline and sound practices of the institution’s daily operations played pivotal role to the tremendous profit the company has made.

“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.”

The CEO further assured that the company is very much committed to the well being of its customers and stakeholders as well, amidst the national economic challenges.

“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,” Sunday further stated.

‘GTCO is a leading financial services group with banking operations in Nigeria, West Africa, East Africa, United Kingdom alongside new businesses in Payment, Funds Management and Pension Fund Administration.

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Its leadership in the banking industry and efforts at empowering people and communities has earned it many prestigious awards over the years.

Recently, Guaranty Trust, GT Bank, was recognized as Nigeria’s Best Bank and Best Bank in CSR at the 2023 Euromoney Awards for Excellence, Best Banking Group in Nigeria by World Finance, and Best Bank in Nigeria by Global Finance. GTCO’s Guaranty Trust, GT Bank is featured in the Top 1000 Banks in the World and Top 100 Banks in Africa rankings by The Banker.

GTCO has always had the best metrics in the Nigerian Financial Services industry in terms of key financial ratios i.e., Pre-Tax Return on Equity (ROAE) of 61.4%, Pre-Tax Return on Assets (ROAA) of 8.8%, Full Impact Capital Adequacy Ratio (CAR) of 24.7% and Cost to Income ratio of 27.7%.

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