GTCO | Guaranty Trust Holding H1 2023 Quick Take : Strong revaluation gains boost profit

    GTCO’s H1 2023 audited numbers showed a 53.5%y/y growth in Interest Income to N225.95bn driven by growth in Interest Income on Net Loans and Investment Securities. Net Loans and advances to Customers was up 22.8% in H1 2023 relative to December 2022 (inclusive of the impact of devaluation of foreign currency loans). The bank has been very reluctant to increase risk assets amidst the negative headwinds. On the other hand, Interest Expense also grew strongly, up 84.0% y/y to N48.5bn. Customer Deposits grew moderately, up 39.1% (inclusive of the impact of devaluation) in June 2023 compared with December 2022. Overall, Net Interest Income grew 46.8% y/y to N177.5bn.

    Net Fee and Commission Income grew marginally y/y, up 8.8% and declined in Q2 relative to Q1 2023, down 27.8%. The q/q decline was due to steep declines in credit related fees (down to N127.5m in Q2 2023 from N2.8bn in Q1) and corporate finance fees (down to N912.9m in Q2 2023 from N3.9bn in Q1 2023).


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