Q1: GTCOs profit swells by N509.3bn
Amid the harsh operating environment, income from GTCOs funded and non-funded lines drove its profit up to N509.3 billion for the first quarter (Q1) of 2024.
According to the banks unaudited Consolidated and Separate Financial Statements for the period ended March 31, 2024, which was filed at the weekend to the Nigerian Exchange Limited (NGX) and London Stock Exchange (LSE), the group reported profit before tax of N509.3billion, representing an increase of 587.5 per cent over N74.1billion recorded in the corresponding period ended March 2023.
The groups profit after tax (PAT) grew by 685 per cent from N58.17 billion recorded in 2023 to N457.13 billion while its interest income grew to N281.65 billion from 104.08 billion, representing an increase of 170.6 per cent, which was boosted by higher income from loans and advances to customers (+91.0 per cent y/y), investment securities (+307.5 per cent y/y) and cash and balances with banks (+265.9 per cent y/y).
The Groups loan book (net) increased by 21.9 per cent from N2.48 trillion recorded as at December 2023 to N3.02 trillion in March 2024, while deposit liabilities increased by 26.0 per cent from N7.55 trillion in December 2023 to N9.51 trillion in March 2024. The Groups balance sheet remained well structured, diversified, and resilient with total assets and shareholders funds closing at N13.0 trillion and N2.0 trillion, respectively.
Its Full Impact Capital Adequacy Ratio (CAR) remained very strong, closing at 24.9 per cent, while asset quality was sustained as IFRS 9 stage 3 loans improved to 3.1 per cent in March 2024 from 4.2 per cent December 2023 and cost of risk (COR) closed at 0.4 per cent from 4.5 per cent in December 2023.
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Commenting on the results, the Group Chief Executive Officer, GTCO Plc, Segun Agbaje, said that the groups first quarter results reflect the unfolding value of what it has created in all its business verticals through the Holding Company Structure – from Banking and Payments to Funds Management and Pension.
“We are positioned to compete effectively on all fronts and fulfil all our customers needs under a unified, thriving financial ecosystem. Despite the challenging operating environment, we delivered a solid performance, recording significant growth across all financial and non-financial metrics, and we remain on track to meeting our full year guidance.
Looking ahead, we will continue to focus on strengthening our relationships with our loyal customers, supporting not just individuals and businesses but also our communities through our well-attested free business platforms as well as innovative products and services. We are confident in our credentials to lead the future of financial services in Africa and will not relent in our commitment to excellence whilst delivering long-term value to all stakeholders,” Agbaje said.
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 117.0 per cent, pre-tax return on assets (ROAA) of 18.0 per cent, full impact capital adequacy ratio (CAR) of 24.9 per cent and cost-to-income ratio (CIR) of 16.3 per cent.