GTCO Joins Trillion Naira Valuation 'Club' on NGX
Segun Agbaje, GTCO GMD

GTCO Joins Trillion Naira Valuation ‘Club’ on NGX

GTCO Plc has crossed N1 trillion in market capitalisation as equities investors continue to position in value, growth stocks ahead of second quarter earnings season, data from the Nigerian Exchange (NGX) showed.

Nigerian Equities have rallied sharply in the last few weeks following the suspension of Godwin Emefiele as Central Bank of Nigeria (CBN) governor with the expectation of better, healthier financial sector regulation.

Banking stocks have been strongly re-rated, though stockbrokers told MarketForces Africa that despite the ongoing rally, Nigerian stocks are still trading below emerging market peers. The holdings company’s share price has been strongly repriced, settling at N34.40 per unit on Tuesday.

At the close of the trading session, the financial service group saw its market valuation at N1.012 trillion, while market analysts estimated a higher earnings debut for the second quarter despite its foreign, oil, and gas loan concentration risks.

The move to the trillion naira gang has increased the number of tier-1 banks in that category. Zenith Bank was the first to make N1 trillion in market valuation, priced at N1.067 trillion, the local bourse said on its website.

Equity analysts told MarketForces Africa that GTCO would see a higher revaluation gain in the second quarter of 2023 following a sharp devaluation of the local currency. According to CardinalStone Research, the group ranked positively in terms of net foreign currency position.

GTCO Plc’s net open US dollar position was estimated at about $1.5 billion while Zenith Bank has about $1.4 billion. However, GTBank is expected to face challenges resulting from a sharp top of the industry’s high exposure to foreign currency and very steep taste for oil and gas loans.

In the first quarter of 2023, the group’s net interest income came at N82.15 billion, a steep jump from N52.70 billion due to higher interest rate adjustments in Nigeria. >>Nigerian Treasury Bills Yield Rises to 7%

A strong return from its interest earnings assets supported pretax profit growth to N74.09 billion from N54.29 billion in the comparable period in 2020.#GTCO Joins Trillion Naira Valuation ‘Club’ on NGX

Special Report: GTCO Plc’s 37% Oil and Gas Exposure, 57% Foreign Currency Loans