GTCO Makes History, Becomes First Nigerian Financial Institution to Hit Over N1 Trillion in Profit
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GTCO Makes History, Becomes First Nigerian Financial Institution to Hit Over N1 Trillion in Profit

GTCO to Write Off Aiteo Loan and Focus on Recovery

Guaranty Trust Holding Company (GTCO) Plc has set a new record, becoming the first Nigerian bank to make a profit of over N1 trillion. For the first half of 2024, GTCO reported a profit before tax (PBT) of N1.004 trillion, a huge jump of 206.6% compared to the N327.4 billion they made around this same time in 2023.

At the bank’s 23rd annual general meeting, shareholders approved a massive N45.62 billion dividend payout. This means that for every 50 kobo share you own, you’ll get N1.30. When you add the N0.25 paid out earlier in the year, that brings the total to N1.55 per share for 2024.

GTCO’s loan book has grown significantly by 25.5%, from N2.48 trillion at the end of 2023 to N3.11 trillion by June 2024. The bank also saw a big increase in deposits, rising from N7.55 trillion to N10.55 trillion—that’s a growth of nearly 40% in just six months!

GTCO is growing across all its business areas—banking, pensions, payments, and funds management—and its balance sheet is looking strong, with total assets at N14.5 trillion and shareholders’ funds at N2.4 trillion. The bank’s Capital Adequacy Ratio (CAR) is very solid at 21%, meaning the bank has a strong cushion to deal with any risks.

They’ve also improved their Cost of Risk (COR), which dropped to 1.6% in June 2024, down from 4.5% in December 2023. This shows they are managing loans and risks better than before.

Speaking about the results, Segun Agbaje, the CEO of GTCO, said he’s very proud of what the bank has achieved, despite the challenging business environment. “This record profit shows how strong and adaptable our business model is,” he said. Agbaje also added that the company is optimistic about the future and plans to keep growing its operations in banking, payments, pensions, and fund management across different markets.

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