By Stanley Onyeka, Lagos
Guaranty Trust Holding Company Plc (GTCO) has reported pretax profit of ₦609.3billion in its full year (FY) year ended December 31, 2023, a 184.5% leap over the ₦214.2billion recorded in the corresponding year ended December 2023.
In its Audited Consolidated and Separate Financial Statements to the Nigerian Exchange Group (NGX), and the London Stock Exchange (LSE), the Group’s loan book (net) Increased by 31.5% from ₦1.89trillion recorded year-on-year (y/y) to ₦2.48trillion.
Its deposit liabilities also grew by 63.7% from ₦4.61trillion in December 2022 to ₦7.55trillion in December 2023.
The dual-listed Group said its balance sheet remained well structured, diversified, and resilient with total assets and shareholders’ funds closing at ₦9.7trillion and ₦1.5 trillion, respectively.
“Full Impact Capital Adequacy Ratio (CAR) remained very strong, closing at 21.9%, while asset quality was sustained as IFRS 9 Stage 3 Loans improved to 4.2% in December 2023 from 5.2% December 2022.
“However, Cost of Risk (COR) closed at 4.5% from 0.6% in December 2022 owing to worsening macros which caused significant increase in ECL variables,” it said.
As we navigate the challenges and opportunities that lie ahead, we are confident that our robust underpinnings and focus on flawless execution will continue to drive sustainable growth across all our operations and deliver long-term value for our stakeholders.
Tested business model
Commenting on the results, the Group Chief Executive Officer, GTCO, Segun Agbaje, said: “The challenging operating environment of 2023 truly tested the business model we put in place for the Holding Company, for both our banking and non-banking business verticals.
“Harnessing the Group’s synergies yielded a strong performance, allowing us to strengthen our foothold in banking whilst also building viable and resilient businesses of HabariPay, Guaranty Trust Fund Managers, and Guaranty Trust Pension Managers.
“Also important to our success is our relentless obsession with innovation and offering great customer experiences as demonstrated by the successful redesign and upgrade of our mobile banking application, GTWorld.”
Mr. Agbaje added: “In a landscape characterised by evolving regulatory reforms, global uncertainties, and heightened competition, we have continued to leverage our inherent strengths and capabilities to unlock significant value, creating more opportunities for the businesses and individuals we serve.
“As we navigate the challenges and opportunities that lie ahead, we are confident that our robust underpinnings and focus on flawless execution will continue to drive sustainable growth across all our operations and deliver long-term value for our stakeholders.”
Overall, the Group continues to post one of the best metrics in the Nigerian financial services industry in terms of key financial ratios i.e., Pre-Tax Return on Equity (ROAE) of 50.6%, Pre-Tax Return on Assets (ROAA) of 7.6%, Full Impact Capital Adequacy Ratio (CAR) of 21.9% and Cost to Income ratio of 29.1%.
GTCO is a leading financial services group with banking operations in Nigeria, West Africa, East Africa, and the United Kingdom alongside non-banking verticals in HabariPay, Guaranty Trust Fund Managers, and Guaranty Trust Pension Managers.
Its leadership in the banking industry and efforts at empowering people and communities has earned it many prestigious awards over the years.
