GTCO’s FY 2023 audited numbers showed a 69.3%y/y growth in Interest Income to N550.8bn driven by growth in both average volume of earning assets and average yield. Net Loans and advances to Customers grew 31.5% in FY 2023 relative to FY 2022 (inclusive of the impact of devaluation of foreign currency loans). The bank has been very reluctant to increase risk assets significantly amidst the negative macroeconomic headwinds. Interest Expense also grew strongly, up 72.6% y/y to N114.1bn. Customer Deposits grew moderately, up 65.2% y/y (inclusive of the impact of devaluation) in 2023 compared with FY 2022. Overall, Net Interest Income grew 68.4% y/y to N436.7bn, 10.8% ahead of our forecast and Net Interest Margin (NIM) expanded to 7.9% compared with 6.7% for FY 2022.
Net Fee and Commission Income grew strongly up 41.3% y/y to N109.4bn largely in line with our forecast. Main drivers of the y/y growth were strong growth in credit related fees, account maintenance charges, Commission on foreign exchange deals, E-Business Income, and transfer related charges.
