GTCO Crossed N1.7 Trillion, Q3 Profit Raised Earnings Bar
Nigeria’s multinational financial services group, Guaranty Trust Bank Holdings (GTCO) Plc, whose market value crossed N1.7 trillion, has remained steady over the last five trading sessions on the Nigerian Exchange.
The most valuable Nigerian bank on the stock market saw its share price breaking series of resistance in the last quarter of 2024. The significant surge in its market value was bolstered by strong earnings beat in the first nine months of financial year 2024.
GTCO’s financial performance in the first nine months of 2024 reflects strong growth and resilience, positioning the company as a leading financial services group in Africa, analysts said in a chat.
Expectation has remained higher after the group crossed N1 trillion in profitability in the third quarter of 2024. A slew of analysts expect GTCO to continue to deliver impressive results driven by the high-interest rate environment and the group’s operational efficiency.
Its earnings results for the period showed that GTCO’s gross earnings saw 111.47% year-on-year growth from ₦850.33 billion to ₦1.80 trillion, driven by strong performance across interest income and non-interest income.
There was an impressive growth of 161.73% year on year in interest income, which printed at ₦980.34 billion from ₦374.56 billion in the comparable period. Its interest income growth was driven majorly by loans and advances to customers and investment securities, offsetting the decline in loans and advances to banks.
Based on geographical location, interest income earned in Nigeria contributed majorly to GTCO’s total interest income for 9M’2024, contributing 56.81%, while interest income earned from outside Nigeria contributed 43.19%.
However, in comparison to the year-on-year surge of the total income, interest income earned from outside Nigeria surged by 200.87%, while interest income earned from Nigeria experienced a year-on-year increase of 138.18%.
For 9M’2024, GTCO reported an interest expense of ₦198.86 billion from ₦77.02 billion in 9M’2024, showing a significant 158.20% increase. The increase was triggered majorly by the current high-interest rate environment, which led to an increase in other borrowed funds, higher payments on customer’s deposits, and deposits from banks.
Despite the surge in interest expense, net interest income still experienced an upswing by 162.65% year on year to ₦781.48 billion due to the robust interest income recorded and later settled at ₦717.92 billion due to the decline in loan impairment charges.
GTCO recorded a 70.52% year-on-year increase in its non-interest income, which can be attributed majorly to unrealised fair value gain on financial interest and the 92.23% increase on net fee and commission income.
Although there was an unrealised foreign exchange revaluation loss, the gains recorded in non-interest income, interest income and fair value gains were able to offset the N1.75 billion loss from the unrealised foreign exchange loss.
GTCO’s operating expenses increased with a reported margin of 61.1% year on year to ₦294.35 billion, driven by higher personal expenses, depreciation and amortisation costs, and other operating expenses.
GTCO pretax profit grew by 181.50% year on year, rising from ₦433.20 billion to ₦1.22 trillion at the end of 9M-2024 earnings results. PAT grew significantly by 195.31% from ₦367.42 billion to ₦1.09 trillion for 9M’2024. #GTCO Crossed N1.7 Trillion, Q3 Profit Raised Earnings Bar 2025 Budget: Osun Govt Targets N109bn IGR
