Guaranty Trust Holding Company Plc has made headlines with its remarkable financial performance, reporting an astounding 587.5 percent growth in profit before tax for the first quarter of 2024 compared to the same period in 2023.
The banking giant disclosed these impressive figures in its unaudited results filed with the Nigerian Exchange Limited, signaling a robust start to the fiscal year, which marks the largest ever first quarter profit in the Nigerian banking history.
The Group’s profit before tax soared to an impressive N509.3 billion, marking a significant surge from N74.1 billion recorded in the corresponding quarter of 2023.
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This meteoric rise follows the trend of robust financial reports by Nigerian banks in the economic turmoil that has seen the profits of multinational companies operating in the country, significantly plummeted.
Furthermore, the Group’s balance sheet witnessed substantial expansion during the period under review, with total assets and shareholders’ funds reaching N13 trillion and N2 trillion, respectively. This growth trajectory reflects the company’s solid performance and strategic positioning in the financial market.
A closer look at the financial metrics reveals notable increases in key indicators. The Group’s loan book (net) expanded by 21.9 percent, reaching N3.02 trillion in March 2024 from N2.48 trillion in December 2023. Similarly, deposit liabilities surged by 26.0 percent, climbing from N7.55 trillion in December 2023 to N9.51 trillion in March 2024, underscoring the trust and confidence reposed in the company by its customers.
Commenting on the stellar results, Mr. Segun Agbaje, the Group Chief Executive Officer of Guaranty Trust Holding Company Plc, expressed pride in the company’s achievements. He attributed the impressive performance to the synergies derived from the Holding Company Structure, which enables the Group to compete effectively across various business verticals. Agbaje highlighted the company’s commitment to meeting customers’ needs comprehensively within a thriving financial ecosystem.
“Our first quarter results reflect the unfolding value of what we have created in all our business verticals through the Holding Company Structure – from Banking and Payments to Funds Management and Pension, we are positioned to compete effectively on all fronts and fulfill all our customers’ needs under a unified, thriving financial ecosystem.
‘‘Despite the challenging operating environment, we delivered a solid performance, recording significant growth across all financial and non-financial metrics, and we remain on track to meet our full-year guidance,” he said.
Looking ahead, Agbaje reiterated the company’s dedication to enhancing customer relationships and supporting communities through innovative products and services. He reaffirmed Guaranty Trust Holding Company Plc’s position as a leader in the future of financial services in Africa, emphasizing the company’s unwavering commitment to excellence and long-term value creation for all stakeholders.
“we will continue to focus on strengthening our relationships with our loyal customers, supporting not just individuals and businesses but also our communities through our well-attested free business platforms as well as innovative products and services.
‘‘We are confident in our credentials to lead the future of financial services in Africa and will not relent in our commitment to excellence whilst delivering long-term value to all stakeholders,” he said.
In addition to its stellar financial performance, Guaranty Trust Holding Company Plc has announced plans to raise additional capital of up to $750 million to meet the new capital requirements set by the Central Bank of Nigeria. The company aims to achieve this through the issuance of securities in the Nigerian and/or international capital markets, further bolstering its financial strength and market position.
The holding company made significant strides in the fiscal year 2023, reporting a gross earnings figure of N1.187 trillion, representing a remarkable increase of 120.03% from the previous year’s earnings of N539.235 billion.
With its impressive growth trajectory and strategic initiatives, Guaranty Trust Holding Company Plc continues to set the pace in Nigeria’s financial sector, poised for sustained success and value creation in the years to come.