GTCO Grows Profit by 219% to N539 Billion
Guaranty Trust Holdings Company (GTCO) Plc grew its annual net profit by more than 219% year on year to about N540 billion, details from its audited financial statement posted to the Nigerian Exchange shows.
According to its audited financial statement, gross earnings spiked by 120% year on year to N1.186 trillion in 2023 from N539.24 billion in the comparable year in 2022. This was supported by a significant increase in net interest income in the period plus growth in non-interest related revenues.
The group net interest income rose to about N437 billion in 2023, according to details from its audited report. This translates to about 69% year on year growth from N259 billion its posted in 2022.
Analysts believe that increase interest income came following monetary policy tightening in Nigeria. Interest rate has been adjusted upward significantly in the last one year. Benchmark interest rate has surged to 24.75%, reflating net margin on loan book.
Credit impairment charges rose alongside growth in its loan book in the period. The bank charged about N103 billion as impairment on credit losses against its income statement as against less than N12 billion provided for in 2022.
GTCO also earned about N110 billion as net fees and commission income in the period. This translates to a 20% year on year growth above about N92 billion it earned from the income line in 2022.
Its pretax profit was more than N609 billion in 2023. At the end of the year, GTCO settled with N539.654 billion as net profit for 2023 versus N169.173 billion in the comparable year in 2022.
Management said during the 2023 financial year, Directors declared and paid an interim dividend of 50 Kobo per ordinary share on the share capital of 29,431,179,224 Ordinary Shares of 50 Kobo each, for the half-year period ended June 30, 2023.
