GTCO sees high N539.6B profit in 2023, boosted by revaluation gains.

GTCO sees a high N539.6B profit in 2023, boosted by revaluation gains.

Guaranty Trust Holding (GTCO) recently announced a record-breaking profit of N539.6 billion for fiscal year 2023. This substantial growth was primarily fueled by a surge in gross earnings, which reached a staggering N1.187 trillion, marking a significant 120.03% increase from the previous year’s figure of N539.235 billion.

A detailed analysis of the financial statements sheds light on the key drivers behind this impressive performance. Notably, interest income emerged as a major contributor, accounting for 46.42% of the gross earnings. The Group also reported a profit before tax of N609.308 billion for the fiscal year ending on December 31, 2023, and proposed a final dividend of N2.70 per share.

One of the pivotal factors that bolstered GTCO’s financial success in 2023 was the substantial foreign exchange (FX) revaluation gains amounting to N449.347 billion. This represented a significant shift from the previous year, where FX revaluation gains played a more modest role, contributing only 10.74% to the gross earnings.

The financial highlights for the fiscal year 2023 compared to 2022 are truly impressive:
Gross earnings soared to N1.187 trillion, marking a remarkable 120.03% year-on-year increase.
Interest income reached N550.755 billion, reflecting a substantial 69.25% year-on-year growth.
Net interest income after loan impairment charges stood at N333.743 billion, marking a 34.95% increase from the previous year.
FX revaluation gains surged to N441.791 billion, representing a remarkable 662.54% year-on-year growth.
Profit for the period skyrocketed to N539.655 billion, a remarkable 218.99% year-on-year increase.
Total assets grew to N9.691 trillion, marking a significant 50.33% year-on-year increase.
Customers’ deposits increased to N7.411 trillion, reflecting a substantial 65.23% year-on-year growth.

GTCO’s strategic shift towards reducing reliance on loans and advances while increasing exposure to debt securities demonstrates a proactive approach to diversifying its risk profile. This strategic move not only helps mitigate the concentration risk associated with heavy reliance on lending activities but also enhances the overall stability of the bank’s balance sheet.

Moreover, the bank’s conservative lending policy, reflected in a moderated loan provision of N103 billion, underscores its commitment to prudent risk management practices. The recommendation of a final dividend of N2.70 per share, resulting in a total dividend payout of N3.20 per share for the year, signifies GTCO’s commitment to rewarding its shareholders.

Finally, GTCO’s outstanding financial performance in 2023, fueled by strong growth in key financial metrics and strategic risk management initiatives, positions the bank as a formidable player in the financial services sector. Investors and stakeholders alike have much to be happy about as GTCO continues to deliver impressive results and maintains its position as a leading financial institution.