Connect with us


Business and Brands

BREAKING: GTCO pre-tax profits hit N1.2 trillion in first 9 months of 2024

Published

on

GTCO Plc released its third-quarter results, showing that pre-tax profits rose to N215.69 billion, compared to N105.8 billion recorded in the corresponding quarter of 2023.

These third-quarter profits helped boost the financial holding company’s nine-month pre-tax profits to N1.2 trillion — the highest on record in the financial services sector, following the N1 trillion milestone achieved in the first half of the year.

Advertisement

The nine-month performance also enabled the bank to reach N1 trillion in profit after tax for the first time, making it the first bank to achieve this milestone.

 

Advertisement

The bank reported total assets of N15.6 trillion for the first time in its history, while net assets also rose to N2.62 trillion — another all-time high for the company.

Key Highlights (third quarter)

  • Net Interest Income: N362.4 billion, +143.9%, YoY
  • Loan Impairments: N16.16 billion, +148.5%, YoY
  • Net Fees and Commission: N57.4 billion, +85.8%, YoY
  • Pre-tax Profits: N215.69 billion, +103.9%, YoY
  • Loans and advances: N3 trillion, +36.1, YoY
  • Total Deposits: N11.2 trillion, +77%, YoY
  • Total Assets: N15.6 trillion, +81.3%, YoY
  • Net Assets: N2.6 trillion, +106.8%, YoY

Commentary 

A cursory review of the results reveals that GTCO reported a pre-tax profit of N215.6 billion in the quarter under review.

Advertisement
  • While this figure more than doubled the profit reported a year earlier, it fell below the N509.3 billion and N494.4 billion recorded in the first and second quarters of the year, respectively.
  • A deeper analysis of the company’s financial statement shows that the drop in pre-tax profits was due to a decline in its other operating income, which swung to a N52.8 billion loss from a N305.3 billion profit in the second quarter.
  • This income line also contributed N324.9 billion in the first quarter of the year. Notably, the company reported an “unrealised gain on forward transactions” of N32.1 billion for the first nine months of this year, down from N130.2 billion in the first six months.

Despite this decline, the HoldCo crossed the N1 trillion profit after tax mark for the first time ever, becoming the first in the financial services sector to achieve this milestone.

  • GTCO’s net interest income rose to N781.48 billion, marking a substantial 162.6% year-on-year increase.
  • This growth was driven by an increase in interest-earning assets or higher rates, allowing GTCO to benefit from a favorable interest environment.
  • This strong performance in net interest income highlights GTCO’s effective asset allocation strategy, which leaned towards fixed income securities amid rising interest rates.
  • Net fee and commission income almost doubled to N158.55 billion, reflecting a 92.2% year-on-year increase.
  • This rise in fee-based revenue underscores GTCO’s diversification strategy, with income generated from non-interest sources such as credit-related fees and commissions, e-business income, account maintenance charges, transaction fees, ancillary banking charges, and other services.
  • In an industry where margins on traditional lending can be thin, this strong growth in fee income reflects GTCO’s adaptability and engagement with its customer base.
READ ALSO:   Coup: President Tinubu Closes Nigeria’s Land Borders Against Niger Republic
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *







Entertainment50 minutes ago

Italian village offers $1 houses to Americans fleeing Donald Trump

Entertainment53 minutes ago

Olajumoke Onibread Gets New Opportunity In Life, Takes Fresh Move…(Videos)

Top Stories58 minutes ago

Embattled UNIZIK VC Rejects President Tinubu’s Sack,Gives Reason

Entertainment1 hour ago

Chidimma Adetshina quits pageantry,gives reason

Politics18 hours ago

Gov Okpebholo finally swears in Oshiomhole’s son as commissioner for health

News18 hours ago

Breaking: #RelocatingAbroad: UK visa centres in Nigeria to transition to new supplier…

Top Stories18 hours ago

Breaking: Yahaya Bello to meet EFCC officials in Abuja over money laundering allegations

News19 hours ago

His Property Or Family Inheritance? – Nigerians React As Ndume Begs Senate To Allow Ifeanyi Ubah’s Widow To Replace Him As Senator

Top Stories19 hours ago

Nigerian Senators Met In London To Perfect Defection Plan – Lawmaker

Entertainment19 hours ago

President 50-Year Old Daughter’s Sex Tape Breaks The Internet (WATCH HERE)

Top Stories23 hours ago

BREAKING: Many Police Feared Killed As Gunmen Go On Rampage In Abia State

Entertainment23 hours ago

Drama As UK Man Claims He’s Nigerian But Is Denied Visa To Visit His Village (Photos)

News23 hours ago

Woman and her husband found guilty of k!lling her ex-boyfriend for insurance money

Top Stories23 hours ago

“$2.2B Loan Is ‘Lunch Money, Tinubu Govt Should Borrow More” Senator Jimoh Ibrahim

Entertainment23 hours ago

BBNaija Khalid breaks silence on unpaid debt allegations by Ilebaye and Saga

Also Read...