In its audited financial reports for the first half (H1) period ended June 30, 2021, Guaranty Trust Holding Company (GTCO) Plc, previously Guaranty Trust Bank Plc, announced a profit before tax of N93.1 billion.
In the face of a challenging business environment, an examination of the results reported on the Nigerian and London Stock Exchanges revealed a fair performance across key financial indicators.
The business declared a profit before tax of N93.1 billion, down 15.2 per cent from the N109.7 billion reported in the same period of the previous year. However, the Group’s transactional income increased by 44.7 per cent from N26.5 billion in H1 2020 to N38.3 billion in H1 2021, as evidenced by fees and commission income, which increased by 44.7 per cent from N26.5 billion in H1 2020 to N38.3 billion in H1 2021.
Total assets closed at N5.017 trillion, owing to a 4% growth in deposit liabilities from N3.611 trillion in December 2020 to N3.755 trillion in June 2021, as well as a 1.8 per cent decrease in loans (net) from N1.663 trillion in December 2020 to N1.632 trillion in June 2021.
However, earnings before tax decreased by 15.18% to N93.056 billion, down from N109.714 billion. The Full Impact Capital Adequacy Ratio (CAR) remained very strong, closing at 24.0%, while asset quality was maintained as the NPL ratio and Cost of Risk (COR) closed at 6.0 per cent based on IFRS (6.8% based on Central Bank of Nigeria Prudential Guidelines) and 0.27 per cent in June 2nd, respectively.
“The results reflect our commitment to building on our track record of solid financial performance and our capability to constantly innovate will ensure we stay ahead of the curve at all times,” said Mr Segun Agbaje, group chief executive officer of Guaranty Trust Holding Company.
“We are counting on the enduring support of our loyal customers and the hard work of our dedicated staff to continually make end-to-end financial services easily accessible to everyone and to create the best outcomes for all our customers and the communities in which we operate”.
He further stated that; “Looking forward, we are focused on bringing to bear the full benefits of our new corporate structure by consolidating our leading position in all the economies where our franchise operates. We will also diversify our earnings from core banking, continue to empower businesses across Africa and beyond, and generate long-term returns for our shareholders”.
Overall, GTCO maintains one of the finest financial ratios in the Nigerian banking business, with a Post-Tax Return on Equity (ROAE) of 19.7%, a Post-Tax Return on Assets (ROAA) of 3.2 per cent, a Full Impact Capital Adequacy Ratio (CAR) of 24.0 per cent, and a Cost to Income ratio of 49.0 per cent.