GTCO Reports 161% Surge In Net Income, N1trn Net Profit After Tax In Nine Months

Guaranty Trust Holding Company (GTCO), a tier-one financial institution in Nigeria, has reported a net profit of N1.08 trillion after-tax for the first nine months of 2024, marking a 161 percent increase compared to the same period in 2023.

Recent data released by the Nigerian Exchange Group (NGX) revealed that GTCO’s interest income soared by 161 percent, reaching N980 billion, up from N374.5 billion last year. CSL Stockbrokers attributed this growth to a rise in average earning assets and an increase in average yields, both of which helped the bank capitalise on favourable market conditions. The bank’s net loans and advances to customers also saw an uptick of 21.8 percent, partly due to foreign currency loan devaluation.

However, GTCO’s operational costs rose sharply amid broader economic pressures, with interest expenses up by 158.2 percent to N198.9 billion. Meanwhile, customer deposits increased by 44.1 percent, resulting in a net interest income of N781.5 billion—a 162.6 percent jump from N297.5 billion in 2023.

Fees and commission revenues were another strong performer, climbing 97.3 percent to N180.2 billion, driven by a 53.7 percent increase in e-business income, which now accounts for more than a quarter of GTCO’s total fees and commissions. Additional boosts came from account maintenance charges, up by 62.7 percent, and ancillary banking services, which surged by an impressive 217 percent.

Despite its growth in income streams, GTCO faced certain challenges. The holding company reported an impairment loss on financial instruments amounting to N63.9 billion, contrasting sharply with the N148.6 billion impairment write-back from last year. Moreover, GTCO encountered a foreign exchange revaluation loss of N1.7 billion, a steep reversal from the N92.2 billion gain it recorded in 2023.

Operating expenses also weighed heavily on GTCO’s results, increasing by 61.1 percent to N297.4 billion due to inflationary pressures and rising energy costs across Nigeria. Yet, the holding company managed a 65.9 percent growth in other income, which reached N523.2 billion, driven primarily by unrealized fair value gains on financial instruments.

GTCO’s operational efficiency was further highlighted by its robust cash flow from operating activities, which surged to N1.87 trillion, a substantial rise from N88 billion in the prior year. However, the holding company reported negative cash flow from investing activities totalling N1.14 trillion due to ongoing investments in securities and property acquisitions. In financing activities, net inflows amounted to N122.1 billion, supported by borrowings that offset dividend payments and other liabilities.

Over the nine-month period, GTCO paid N79.4 billion in dividends, repaid borrowings and lease liabilities of N45.1 billion and N6.5 billion, respectively, and received N254 billion in new borrowings, bringing the net cash flow from financing activities to N122.1 billion.

GTCO’s liquidity position remained strong, with cash and cash equivalents surging by 102.8 percent to N4.28 trillion from N2.11 trillion in 2023. The bank’s loan portfolio expanded by 46.1 percent to N3.2 trillion, pushing total assets to N15.6 trillion. Deposits and current accounts increased by 49.7 percent to N6.65 trillion, while total shareholders’ equity grew by 61.3 percent to N2.63 trillion, highlighting GTCO’s solid financial foundation as it heads into the final quarter of the year.