GTCO reports half year profit of N75.3bn
Guaranty Trust Holding Company Plc (GTCO) has released its Audited Consolidated and Separate Financial Statements for the period ended June 30, 2022, to the Nigerian Exchange Group (NGX) and London Stock Exchange (LSE) recording profit after tax of N75.3bn. The Group reported profit before tax of N103.2billion, representing an increase of 11.0% over N93.1billion recorded […]
Guaranty Trust Holding Company Plc (GTCO) has released its Audited Consolidated and Separate Financial Statements for the period ended June 30, 2022, to the Nigerian Exchange Group (NGX) and London Stock Exchange (LSE) recording profit after tax of N75.3bn.
The Group reported profit before tax of N103.2billion, representing an increase of 11.0% over N93.1billion recorded in the corresponding period ended June 2021.
The Group’s loan book (net) increased by 1.8% from N1.80trillion recorded as at December 2021 to N1.83trillion in June 2022 while deposit liabilities increased by 6.4% from N4.13trillion in December 2021 to N4.39trillion in June 2022.
The Group’s balance sheet remained well structured and resilient with total assets and shareholders’ funds closing at N5.7trillion and N845.7billion, respectively. Full Impact Capital Adequacy Ratio (CAR) stayed very strong, closing at 22.0%, while asset quality was sustained as IFRS 9 Stage 3 Loans ratio and Cost of Risk (COR) closed at 6.2% and 0.2% in June 2022 from 6.0% and 0.5% in December 2021, respectively.
Commenting on the results, the Group Chief Executive Officer of Guaranty Trust Holding Company Plc (GTCO Plc), Mr. Segun Agbaje, said; “Our results show an increase in key revenue lines and a strong performance in other financial metrics which reinforce our growth prospects as a leading financial services company.”
Analysts were unanimous in their views that on balance, earnings were weighed by increased Tax expenses, following the expiration of the tax exemption period for government securities. When annualised, Net profits were behind our and consensus forecasts for FY 22 by 19.8% and 17.6%, respectively, owing to negative surprises on the tax expense and other income lines.