The earnings before tax for Guaranty Trust Holding Company Plc increased to N327.4 billion in the first half of the 2023 fiscal year.
The Group made this disclosure in a statement to the Nigerian Exchange Group and London Stock Exchange on Sunday on its audited consolidated and separate financial statements for the period ended June 30, 2023.
According to the announcement, “The Group reported profit before tax of N327.4bn, representing an increase of 217.1% over N103.2bn recorded in the corresponding period ended June 2022.”
According to the report, the Group’s net loan book climbed by 22.8% from N1.89 trillion in December 2022 to N2.32 trillion in June 2023, while deposit liabilities jumped by 37.0% from N4.61 trillion in December 2022 to N6.32tn in June 2023.
The entire assets and shareholders’ funds of the Group closed at N8.5 trillion and N1.2 trillion, respectively, demonstrating its continued sound structure and resiliency.
“Full impact capital adequacy ratio remained strong, closing at 24.7%, while asset quality was sustained as IFRS 9 Stage 3 loans improved to 4.6% in June 2023 from 5.2% in December 2022, according to the statement.”
However, the cost of risk closed at 3.7% from 0.6% in December 2022 due to deteriorating macros that led to a significant increase in ECL variables.
Guaranty Trust Holding Company Plc’s Group Chief Executive Officer, Mr. Segun Agbaje, stated that the company’s half-year audited results “reflect the strong business fundamentals underpinning the GTCO franchise, the quality of our past decisions in future-proofing our balance sheet for challenging times, and the sound practices that guide our day-to-day operations.”
“We are beginning to witness the benefits in the transformation of our operations following our transition to a holding company structure, despite the obstacles in the business environment, particularly inflationary pressures and exchange rate fluctuations.”
He claimed that profitability has increased, and they’ve performed well across key criteria, which reflects efficiencies and justifies our ongoing investments in technology, product development, and the workforce.
“We acknowledge the impact that the current economic and market conditions have on people’s lives and livelihoods, and we remain dedicated to seeking better outcomes for our customers by making sure that our product and service offerings assist our customers and their businesses through their shifting realities, while also taking advantage of every opportunity to maximise stakeholder value.”