Despite Challenges, GTCO Declares N327bn PBT for Half Year 2023

Kayode Tokede

Amid numerous challenges in the financial sector, Guaranty Trust Holding Company Plc (GTCO), yesterday announced N327.40 billion Profit Before Tax in the audited half year ended June 30, 2023, an increase of 2217.09 per cent from N103.25 billion reported in prior half year ended June 30, 2022.
The lender on the Nigerian Exchange Limited (NGX) also announced N280.48 billion Profit After Tax in H1 2023, an increase of 261.63 per cent from N77.56 billion reported in H1 2022.

The Group had reported Profit Before Tax of N214.2 billion in the 2022 financial year, representing 3.3 per cent dip from N221.5 billion posted in the corresponding year ended December 2021 on the back of N35.6 billion impairment recognised on Ghanaian sovereign securities.
It bounced back in first quarter of (Q1) 2023 with N74.1 billion Profit Before Tax, representing an increase of 36.5 per cent over N54.3 billion recorded in the corresponding period ended March 2022
The increase in profits was driven by N672.60 billion gross earnings in H1 2023, an increase of 239.29 per cent from N239.29 billion in H1 2022.
With the significant increase in profits, the management of GTCO declared N0.50 per share interim dividend in H1 2023 as against N0.30 per share declared in H1 2022.

However, dividend yield dropped to 1.32 per cent in H1 2023 from 1.51 per cent in H1 2022 and it is coming on the backdrop of N38 stock price as at September 1, 2023.  
Financial statement of GTCO showed a N8.51 trillion total assets as at June 30, 2023, an increase of 49.66 per cent from N5.69 trillion reported in 2022 financial year and it is driven by N7.31 trillion total liabilities as of June 30, 2023 from N4.84 trillion reported in 2022 financial year.
When the group released Q1 2023 unaudited results, the Group Chief Executive Officer of GTCO, Mr. Segun Agbaje, in a statement said, “Despite severe headwinds, we delivered a decent performance, recording growth across key revenue lines. “We are also not relenting in our resolve to better outcomes for people and businesses within our financial ecosystem.”

He added, “2023 is shaping up to be another interesting year. Some of the challenges from the past few years are still lingering, and uncertainties ahead would test the resilience of most economies and businesses.
“We are confident in our positioning as a thriving financial services company underpinned by strong business fundamentals and will continue to benefit from a well-diversified earnings base.”