The audited consolidated and separate financial statements for the six-month (H1) period ended June 30, 2023, have been made public by Guaranty Trust Holding Company Plc (GTCO).
The business declared profit before tax (PBT) of N327.4 billion in its results at both the Nigerian Exchange Group (NGX) and London Stock Exchange (LSE), up 217.1 percent over the N103.2 billion achieved in the comparable period ended June 2022.
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From N1.89 trillion recorded as of December 2022 to N2.32 trillion in June 2023, the Group's loan book (net) climbed by 22.8 percent, while deposit liabilities increased by 37 percent, from N4.61 trillion in December 2022 to N6.32 trillion in June 2023.
With total assets and shareholders' funds closing at N8.5 trillion and N1.2 trillion, respectively, the Group's balance sheet remained well constituted.
Full Impact Capital Adequacy Ratio (CAR) closed at 24.7 percent, and asset quality was maintained as IFRS 9 Stage 3 Loans decreased from 5.2 percent in December 2022 to 4.6 percent in June 2023. However, Cost of Risk (COR) decreased from 0.6 percent in December 2022 to 3.7 percent due to deteriorating macroeconomic conditions that led to a significant rise in ECL variables.
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Segun Agbaje, Group CEO of Guaranty Trust Holding Company Plc, commented on the results, saying: "Our half year audited results reflect the strong business fundamentals underpinning the GTCO franchise, the caliber 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 starting to witness the benefits in the transformation of our operations following our transition to a Holding Company structure, despite the difficulties in the business environment, particularly inflationary pressures and exchange rate fluctuations. The investments we continue to make in technology, product development, and our people are justified by improved profitability and strong performance across key measures that show efficiencies.
He continued, "We acknowledge the impact that the current economic and market conditions have on people's lives and livelihoods, and we remain committed 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 maximize stakeholder value."
Overall, the Group maintains one of the best financial metrics in the Nigerian financial services sector, including a cost-to-income ratio of 27.7% and pre-tax returns on equity (ROAE) of 61.4 percent, return on assets (ROAA) of 8.8 percent, and full impact capital adequacy ratio (CAR) of 24.7 percent.
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