GTCO reports N2trn gross earnings, after-tax profit rises by 89%
The payment which was approved by shareholders at the bank’s 23rd annual general meeting translates into a dividend of N1.30 per 50 kobo share held and brings total shareholder receipts for the year to N1.55 per share, when added to the interim dividend payout of N0.25 per share
Guaranty Trust Holding Company (GTCO), a tier-one bank in Nigeria, experienced a year-over-year increase in gross earnings of 81.3 percent, rising to N2.14 trillion in 2024, with corporate banking accounting for the largest share.
According to data from the Nigerian Exchange Group (NGX), this growth occurred alongside an increase in interest income, which rose to N1.32 trillion from N436 billion the previous year.
However, interest expenses increased significantly by 148 percent year-over-year, reaching N283 billion, up from N114 billion in the prior year, expenses from deposits made up a large portion of this.
Despite the rise in expenses, the group’s net interest income was N1.05 trillion, reflecting a 140.8 percent increase from N436 billion the previous year.
The company also reported an after-tax profit of N1.01 trillion for the year ended December 31, 2024, according to its financial statement.
This figure represents an 89.4 percent increase year-over-year from the N539 billion reported in 2023, amid a significant surge in interest income.
Net fee and commission income also saw a rise of 78.2 percent increasing from N124 billion in 2023 to N221 billion in 2024.
Notably, net trading income surged to N86.2 billion from N62.2 billion a year earlier, indicating a year-over-year growth of 38 percent.
Read also: GTCO raises N209bn in first phase of equity capital programme
This was largely due to foreign exchange trading income of N76 billion, with Treasury Bills trading contributing N5.8 billion, and bonds N2.07 billion, among others.
On the expense front, personnel costs rose by 89 percent year-over-year to N85 billion, with wages and salaries at N88.6 billion. Other operating expenses also increased, reaching N259 billion compared to N166 billion in the prior year.
For the year ending December 31, 2024, the group reported total assets of N14.7 trillion, a significant increase from N9.6 trillion in the previous year.
The primary driver of this growth was cash in the bank which amounted to N4.67 trillion, followed by loans and advances to customers, which rose to N2.78 trillion during the period.
This was complemented by restricted reserve deposits and investment securities totaling N1.1 trillion.
Total liabilities also rose, reaching N12.08 trillion compared to N8.2 trillion the previous year.
Customer deposits accounted for the largest share at N10 trillion, representing 82 percent of total liabilities. Additionally, deposits from banks were notable at N388 billion, making up 8.2 percent, among other contributing factors.
