GTCO posts N151.9bn pre-tax profit in Q3

GTCO shareholders endorse N3.10k dividend payout

Guaranty Trust Holding Company (GTCO) Plc recorded a profit before tax of N151.907 billion in its third quarter (Q3) unaudited results for the period ended September 30, 2021.

The financial institution’s results released on the Nigerian Exchange Group (NGX) and London Stock Exchange (LSE) revealed a drop of 9.2 per cent in its profit before tax from N167.3651 billion in Q3, 2020 to N151.907 billion in the period under review.

Profit after tax stood at N129.400 billion as against N142.283 billion in 2020, while earnings per share amounted to N6.4k for the period ended September 30, 2021. Gross earnings of the group declined by 3.5 per cent to N318.496 billion, compared to N329.952 billion in 2020.

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The group’s loan book increased by 4.5 per cent from N1.66 trillion recorded as at December 2020 to N1.74 trillion in September 2021, while deposit liabilities increased by 8 per cent from N3.61 trillion in December 2020 to N3.90trillion in September 2021.

The group’s balance sheet remained well structured and resilient with total assets and shareholders’ funds closing at N5.14 trillion and N824.7 billion respectively. Full Impact Capital Adequacy Ratio (CAR) remained very strong, closing at 23.8 per cent, while asset quality was sustained as non-performing loan (NPL) ratio and Cost of Risk (COR) closed at 5.8 per cent and 0.3 per cent in September 2021 from 6.4 per cent and 1.2 per cent in September 2020 respectively.

Speaking on the results, the group chief executive officer of GTCO, Mr. Segun Agbaje, said: “Our performance validates the resilience of our balance sheet in spite of the challenges in the operating environment, and further justifies our decision to diversify our earnings by going beyond banking in creating long-term value for our discerning stakeholders.

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“Looking forward, we will replicate our digital-first, customer-centric banking strategy in the wealth management and payment spaces to rapidly scale our service offerings in line with our long-term strategy.

“As businesses and households continue to recover from the lingering impact of COVID-19 pandemic, our resolve to stand with our customers and communities through the recovery process is yielding the desired results. Ultimately, we aim to improve the lives of our stakeholders and build partnerships with our communities.”

Overall, the group continues to post one of the best metrics in the Nigerian financial services industry in terms of key financial ratios; Post-Tax Return on Equity (ROAE) of 20.8 per cent, Post-Tax Return on Assets (ROAA) of 3.4 per cent, Full Impact Capital Adequacy Ratio (CAR) of 23.8 per cent and Cost to Income ratio of 44.9 per cent.

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