Investment in technology, product development others lift GTCO’s H1 PBT by 217.1%
Guaranty Trust Holding Company Plc (GTCO) has posted a profit before tax (PBT) of ₦327.4 billion in its half year (H1) operations, against ₦103.2 billion achieved in the corresponding period in 2022.
Specifically, the bank’s audited result for June 30, 2023 period showed 217.1 per cent rise in PBT to ₦327.4 billion from ₦103.2 billion posted in 2022 while Group’s loan book (net) increased by 22.8 per cent from ₦1.89 trillion recorded as at December 2022 to ₦2.32 trillion in June 2023.
The bank hinged the rise in PBT to the transition to a Holding Company structure, investment in technology and product development and the people.
The bank’s deposit liabilities grew by 37 per cent from ₦4.61 trillion in December 2022 to ₦6.32 trillion in June 2023.
The Group’s balance sheet remained well structured and resilient with total assets and shareholders’ funds closing at ₦8.5 trillion and ₦1.2 trillion, respectively.
Its capital adequacy ratio (CAR) closed at 24.7 per cent, while asset quality was sustained as IFRS 9 Stage 3 loans improved to 4.6 per cent in June 2023 from 5.2 per cent December 2022.
It further stated that Cost of Risk (COR) closed at 3.7 per cent from 0.6 per cent in December 2022 owing to macro economic challenges bedeviling the country which caused significant increase in ECL variables.
The Group Return on Equity (ROAE) stood at 61.4 per cent while Pre-Tax Return on Assets (ROAA) and Capital Adequacy Ratio (CAR) closed at 8.8 per cent and 24.7 per cent. Cost to Income ratio also stood at 27.7 per cent within the period.
Group Chief Executive Officer of the bank, Segun 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.
He pointed out that the improved profitability and a solid performance recorded across key metrics reflect efficiencies and justify investment made in technology, product development, and our people.
Agbaje added: “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.”
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