Finance

GTCO posts half-year profit before tax of N93.1bn

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Guaranty Trust Holding Company (GTCO) Plc, formerly Guaranty Trust Bank Plc, has declared a profit before tax of N93.1 billion in its audited financial results for the first half (H1) period ended June 30, 2021.

A review of the results released on the Nigerian and London Stock Exchanges showed a decent performance across key financial metrics against the challenging business environment.

The group reported profit before tax of N93.1billion, representing a dip of 15.2 per cent compared to N109.7 billion recorded in the corresponding period of June 2020. However, the Group’s transactional income maintained an upward trajectory as shown in fees and commission income which grew by 44.7 per cent from N26.5 billion in H1 2020 to N38.3 billion in H1 2021.

The structure and earning capacity of the Group’s balance sheet remain resilient with total assets closing at N5.017 trillion, primarily driven by a four per cent increase in deposit liabilities from N3.611 trillion in December 2020 to N3.755 trillion in June 2021 and a slight dip in loans (net) by 1.8 per cent from N1.663 trillion as at December 2020 to N1.632 trillion in June 2021.

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However, the profit before tax went down by 15.18 per cent to N93.056 billion as against N109.714 billion. Full Impact Capital Adequacy Ratio (CAR) remained very strong, closing at 24.0 per cent, while Asset quality was sustained as NPL ratio and Cost of Risk (COR) closed at 6.0 per cent based on IFRS (6.8 per cent based on Central Bank of Nigeria Prudential Guidelines) and 0.27 per cent in June 2021 to 6.4 per cent and 1.18 per cent in December 2020, respectively.

Speaking on the financials, group chief executive officer of Guaranty Trust Holding Company, Mr Segun Agbaje, said: “The results reflect our commitment to building on our track record of solid financial performance and our capability to constantly innovate will ensure we stay ahead of the curve at all times.

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“We are counting on the enduring support of our loyal customers and the hard work of our dedicated staff to continually make end-to-end financial services easily accessible to everyone and to create the best outcomes for all our customers and the communities in which we operate.”

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He further stated that; “Looking forward, we are focused on bringing to bear the full benefits of our new corporate structure by consolidating our leading position in all the economies where our franchise operates. We will also diversify our earnings from core banking, continue to empower businesses across Africa and beyond, and generate long-term returns for our shareholders.”

Overall, GTCO continues to post one of the best metrics in the Nigerian Banking industry in terms of key financial ratios, Post-Tax Return on Equity (ROAE) of 19.7 per cent, Post-Tax Return on Assets (ROAA) of 3.2 per cent, Full Impact Capital Adequacy Ratio (CAR) of 24.0 per cent and Cost to Income ratio of 49.0 per cent.

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