GTCO Sets a New Record
GTCO Sets a New Record in the Nigerian financial services sector by posting an impressive pre-tax profit of N1.2 trillion for the first nine months of 2024. This achievement marks a significant milestone, as Guaranty Trust Holding Company (GTCO) becomes the first Nigerian bank to surpass the N1 trillion profit mark in such a short span.
A Stellar Third Quarter Performance
In the third quarter alone, GTCO recorded a pre-tax profit of N215.69 billion, more than doubling the N105.8 billion reported in the same period last year. However, this figure was slightly lower than the N509.3 billion and N494.4 billion recorded in the first and second quarters of the year, respectively.
Key highlights from the third-quarter financial statement include:
- Net Interest Income: N362.4 billion (up 143.9% year-on-year)
- Loan Impairments: N16.16 billion (up 148.5% year-on-year)
- Net Fees and Commission: N57.4 billion (up 85.8% year-on-year)
- Pre-tax Profits: N215.69 billion (up 103.9% year-on-year)
- Loans and Advances: N3 trillion (up 36.1% year-on-year)
- Total Deposits: N11.2 trillion (up 77% year-on-year)
- Total Assets: N15.6 trillion (up 81.3% year-on-year)
- Net Assets: N2.6 trillion (up 106.8% year-on-year)
Profit Driven by Strategic Focus on Interest and Fee Income
GTCO’s net interest income for the nine-month period surged to N781.48 billion, a 162.6% increase year-on-year. This growth was largely driven by higher interest rates and strategic allocation to interest-earning assets, particularly fixed income securities.
Furthermore, the bank saw its net fee and commission income almost double, reaching N158.55 billion, a 92.2% increase compared to the previous year. This surge was attributed to its diversified revenue streams, including e-business income, credit-related fees, transaction charges, and ancillary banking services.
Challenges in Other Operating Income
Despite the stellar results, GTCO experienced a decline in other operating income, which swung to a N52.8 billion loss in Q3 2024, compared to a N305.3 billion gain in Q2. This was mainly due to reduced unrealized gains on forward transactions, which dropped to N32.1 billion for the first nine months of 2024, down from N130.2 billion in the first half.
GTCO’s Strategic Outlook
The bank’s management attributes its robust performance to its effective asset allocation strategy amid Nigeria’s challenging economic climate. The strong growth in non-interest income reflects GTCO’s efforts to diversify its revenue sources and enhance customer engagement.
With total assets now at N15.6 trillion and net assets reaching N2.62 trillion, GTCO is positioned to continue its upward trajectory, focusing on maintaining profitability and navigating economic headwinds.
