GTCO Plc Trades at 21.8% Discount to 52-Week High
GTCO Plc tops the list as the most valuable among its banking peers. It is also a less volatile banking stock when compared with the performance of the big five on the Nigerian Exchange.
The financial services behemoth, and perhaps the cost leader in the banking sector, GTCO’s market valuation climbed to N1.24 trillion, according to data from the Nigerian Exchange. The stock remains one of the investors toasts on the local bourse.
Its continuous upward trend and the fact that Fitch Ratings changed its assessment of GTCO from stable to positive were factors in the company’s most recent stock market rallies. Some equity analysts have recommended GTCO to investors on the expectation that it provides solid upside potential.
Last week, the financial services group saw a spike to N42.2 per share in the stock market, from N40. MarketForces Africa reported that the Orange branded financial services group is trading at a 21.77% discount to its 52 week high.
The worst GTCO did was when bearish performance on the local bourse dragged its share price to N30.35 kobo in the last one year. GTCO continues to push its earnings performance higher. The group profit before tax grew significantly, up 587.5% year on year to N509.3 billion in the first quarter of 2024.
Its net profit was N457.1 billion, up 685.9% year on year in Q1 2024. However, asset quality was threatened by a high credit impaired loan. The group’s total impairment charge grew strongly year on year to N13.6 billion in Q1 2024 from N3.4 billion in Q1 2023.
This was related to foreign currency loans, which underperformed, causing a surge in credit migration. GTCO has taken Afex Commodity Exchange to court over N17 billion in anchor borrowers’ loans, which appeared to have busted.
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