GTCO Makes N457 Billion Profit in Three Months

GTCO Makes N457 Billion Profit in Three Months

Guaranty Trust Holding Company Plc (GTCO) posted strong earnings growth in the first quarter of 2024, details from its unaudited financial statement released on Friday showed. The financial services boutique profit rise sharply, up by about 686% year on year to N457 billion in the first three months of operation.

The financial services group reported a 696.1% year on year earnings per share (EPS) growth, settling at N16.24 at the end of first quarter of 2024 as against N2.04 it reported in the comparable period in 2023.

According to analysts, the group strong earnings growth in the period was driven primarily by the fair value gain financial instruments. Details from its unaudited financial statement showed that a gain of N331.55 billion was recorded in Q1-2024. In the Q1-2023, GTCO reported N99.00 million loss from similar fair value revaluation.

In the first three months in the year, GTCO’s interest income advanced by 170.6% year on year to N281.65 billion, boosted by higher income from loans and advances to customers, investment securities and cash and balances with banks.

Analysts noted that the financial services company’s earning asset increased by 104.3% year to date, settling at N10.18 trillion as the high-yielding environment also supported growth in core income.

At the same time, interest expense rose by 147.9% year on year to NGN54.35 billion, primarily driven by the higher interest paid on customer deposits. In the period, the group’s deposits climbed to N9.20 trillion, up by 87.3% year to date.

GTCO witnessed a remarkable 666.4% year on year increase in its non-interest income to N394.86 billion, majorly driven by the N331.55 billion fair value gain recorded for the Holdco’s financial instruments.

Its income from net fees and commission rose by 74.5% and FX trading jumped up by 48.9% year on yea. GTCO reported FX revaluation loss of N12.67 billion in Q1-2024.

Details from the group’s financial statement revealed that operating expenses grew by 76.9% year on year to N99.33 billion from N56.14 billion a year ago. Major drivers of GTCO increased operating expenses were higher personnel expenses and regulatory fees – AMCON levy and deposit insurance premium.

But then, its operating income rose faster than expenses growth, creating solid year on year improvement in the pretax profit.

Its profit-before-tax settle 587.5% higher year-on-year to N509.35 billion. After accounting for a higher income tax charge of 52.21 billion, its net profit came stronger at N457.13 billion, representing 685.9% year on year growth.