GTCO Unveils Impressive Q3 2023 Unaudited Results

Guaranty Trust Holding Company Plc, commonly referred to as GTCO, has just unveiled its Unaudited Consolidated and Separate Financial Statements for the period that concluded on September 30, 2023. The financial results were released to both the Nigerian Exchange Group (NGX) and the London Stock Exchange (LSE).

This is a significant disclosure that sheds light on the company’s financial performance and demonstrates its commitment to transparency.

One of the standout achievements in these financial statements is the Group’s remarkable profit before tax of ₦433.2 billion. This figure represents an astonishing increase of 155.2% compared to the ₦169.7 billion recorded in the corresponding period ending in September 2022. Such substantial growth in profitability is a testament to the company’s robust financial performance and strategic management.

**Key Financial Metrics**

Digging deeper into the financials, the Group’s loan book (net) saw a notable growth of 17.7%. It soared from ₦1.89 trillion as of December 2022 to a substantial ₦2.22 trillion by the end of September 2023. This underscores the Group’s ability to attract and maintain a strong portfolio of loans.

On the deposit side, liabilities swelled by 37.9%. The deposit liabilities expanded from ₦4.61 trillion in December 2022 to ₦6.36 trillion by September 2023. This influx of deposits demonstrates the trust and confidence that both individuals and institutions have in GTCO as a financial institution.

In terms of the balance sheet, GTCO has maintained a well-structured and resilient position. The total assets and shareholders’ funds closed at ₦8.6 trillion and ₦1.3 trillion, respectively. These figures reflect the sound financial health of the company.

One of the critical indicators of a financial institution’s strength is its Capital Adequacy Ratio (CAR). GTCO impressively recorded a Full Impact CAR of 25.1%. This is a strong position, indicating the Group’s capacity to meet its financial obligations and maintain stability.

Asset quality is another crucial aspect of financial performance. Under the International Financial Reporting Standard (IFRS) 9, GTCO’s Stage 3 Loans improved to 3.8% in September 2023 from 5.2% in December 2022. This reduction in non-performing loans showcases the Group’s commitment to managing and improving the quality of its assets.

However, the Cost of Risk (COR) increased to 4.1% from 0.6% in December 2022. This change was primarily driven by the management’s prudent approach to provisioning, especially as macroeconomic conditions worsened year-on-year. The Elevated Credit Loss (ECL) variables had a negative impact on this aspect of the financials.

**Words from the Group CEO**

Mr. Segun Agbaje, the Group Chief Executive Officer of Guaranty Trust Holding Company Plc, shared his thoughts on these impressive results. He said, “Our 3rd Quarter performance underpins our strategic positioning as a leading Financial Holding Company and reaffirms our strong capabilities to successfully navigate the challenges in our operating environment. Going into the final quarter of the year, we will continue to leverage the strengths within our growing financial services ecosystem to improve our products and service offerings, enhance customer experience, and maximize shareholder value.”

In addition, he highlighted the company’s commitment to promoting entrepreneurship across the African continent. Agbaje emphasized, “We are proud of our work towards Promoting Enterprise across the African continent over the years and remain committed to helping indigenous small businesses thrive through our consumer-focused fairs. The 6th Edition of the GTCO Fashion Weekend is scheduled to hold in Lagos, Nigeria, on 11/12 November 2023, and will give entrepreneurs in the Nigerian fashion retail space a free-business platform to showcase their diverse talents and creativity to a global audience.”

The Group’s achievements are reflected in its impressive financial ratios. It boasts a Pre-Tax Return on Equity (ROAE) of 52.4%, indicating a strong return for shareholders. The Pre-Tax Return on Assets (ROAA) stands at 7.7%, underlining the Group’s ability to generate profits from its assets. The Full Impact Capital Adequacy Ratio (CAR) of 25.1% further showcases the Group’s financial strength. Additionally, the Cost to Income ratio, which closed at 29.7%, indicates efficient cost management.

**About GTCO**

Guaranty Trust Holding Company Plc is a prominent financial services group with a substantial footprint in Nigeria, West Africa, East Africa, and the United Kingdom. It has expanded its operations to include new businesses in Payment, Funds Management, and Pension Fund Administration, demonstrating its diversified approach to the financial industry.

GTCO’s leadership in the banking sector and its commitment to empowering people and communities have earned the company numerous prestigious awards over the years. The recent accolades include being recognized as Nigeria’s Best Bank and Best Bank in Corporate Social Responsibility (CSR) at the 2023 Euromoney Awards for Excellence. The company was also honored with the title of Best Banking Group in Nigeria by World Finance and Best Bank in Nigeria by Global Finance.

In global rankings, GTCO’s Guaranty Trust Bank has been featured in the Top 1000 Banks in the World and the Top 100 Banks in Africa by The Banker. These acknowledgments reflect the Group’s continued dedication to excellence in the financial services industry.

In conclusion, GTCO’s latest financial results reveal a thriving and resilient financial institution that continues to perform exceptionally well in the Nigerian financial landscape. With strong profitability, robust asset quality, and a commitment to promoting entrepreneurship, GTCO stands as a beacon of success in the banking industry. Its dedication to enhancing customer experiences and supporting small businesses further cements its position as a leader in the financial services sector.