BREAKING: GTCO reports N1 trillion pre-tax profit in 6 months, first to hit milestone

GTCO Plc released its second quarter audited financial statements showing a pre-tax profit of N494.5 billion nearly double the same profits reported a year earlier.

This represents the best second-quarter results reported thus far by any financial holding company or bank in Nigeria and follows a blistering N509.3 billion reported in the first quarter of the year.

In total, the bank has now reported a whopping N1 trillion in the first half of 2024.

Key Highlights – Q2 2024

• Interest Income: N336.2 billion, +176%
• Net Interest Income: N264.2 billion, +177%
• Loan Impairments: N33.9 billion, -79%
• Net Commission and Fees: N48.8 billion, +126%
• Other Income: N305.2 billion, -15%
• Total Operating Expenses: N102.7 billion, +48%
• Pre-tax profit: N494.4 billion, +95%
• Loans & Advances: N3.1 trillion, +34%
• Total Deposits: N10.2 trillion, +62%
• Net Assets: N2.3 trillion, +96%
• EPS: N16

Commentary: GTCO’s second-quarter result remains the highest reported by any commercial bank this year and is only second to the bank’s first-quarter results.

• A key driver of the performance was a growth in net interest income which rose by 177% to N264.2 billion.
• This is also the best net interest income reported by the bank for any quarter in its history, underscoring the performance of its risk assets in the period under review.
• To put this into context, GTCO reported a total net interest income of N259.3 billion in the whole of 2022.
• In total, the bank’s net interest income for the first half of the year sums up to about N491.5 billion (2023 FY: N436.6 billion) and was driven by loans to customers.
• A further breakdown shows that N361.9 billion was earned from its Nigerian operations and another N255.9 billion from outside the country.
• However, Nigeria contributed N843.1 billion to pre-tax profits.
• Included in the bank’s 6 months income of N630.2 billion is “Unrealized fair value gain on the financial instrument” of N493 billion and another N130.2 billion on “Unrealized Gain on Forward Transactions”, all connected to forex revaluation.
• This suggests that its N1 trillion pre-tax profits include over N520 billion of unrealized gains.
• The bank also reported gross commission and fees of N113.9 billion which was driven by e-business income of N32.5 billion and N16.3 billion in Commission on foreign exchange deals.
• Account maintenance charges also earned the bank another N15.6 billion.
• GTCO’s Corporate Banking Group remains its bread and butter contributing N521 billion to pre-tax profits with its retail division coming next with N298.6 billion (2023 H1: N63.2 billion)

GTCO also declared an interim dividend per share of N1 to its shareholders which is double the 50 kobo per share paid in the same period in 2023.

The bank share price closed at N45.45 per share down 0.11%.