Details from Guaranty Trust Holding Company Plc’s (GTCO) unaudited financial statement, which was made public on Friday, indicated that the company had significant earnings increase in the first quarter of 2024.
In the first three months of business, the financial services boutique’s earnings increased dramatically, rising by almost 686% year over year to N457 billion. The financial services group’s profits per share (EPS) increased by 696.1% year over year at the end of the first quarter of 2024, compared to N2.04 during the same time in 2023.
According to experts, the fair value gain financial instruments were the main factor driving the group’s robust profits increase over the time. Information from their unaudited financial statement revealed that Q1-2024 had a gain of N331.55 billion. In the Q1-2023, GTCO reported N99.00 million loss from similar fair value revaluation.
In the first three months in the year, GTCO’s interest income advanced by 170.6% year on year to N281.65 billion, boosted by higher income from loans and advances to customers, investment securities and cash and balances with banks.
Analysts noted that the financial services company’s earning asset increased by 104.3% year to date, settling at N10.18 trillion as the high-yielding environment also supported growth in core income.
At the same time, interest expense rose by 147.9% year on year to NGN54.35 billion, primarily driven by the higher interest paid on customer deposits. In the period, the group’s deposits climbed to N9.20 trillion, up by 87.3% year to date.
GTCO witnessed a remarkable 666.4% year on year increase in its non-interest income to N394.86 billion, majorly driven by the N331.55 billion fair value gain recorded for the Holdco’s financial instruments.
Its income from net fees and commission rose by 74.5% and FX trading jumped up by 48.9% year on yea. GTCO reported FX revaluation loss of N12.67 billion in Q1-2024.
Details from the group’s financial statement revealed that operating expenses grew by 76.9% year on year to N99.33 billion from N56.14 billion a year ago. Major drivers of GTCO increased operating expenses were higher personnel expenses and regulatory fees – AMCON levy and deposit insurance premium.
But then, its operating income rose faster than expenses growth, creating solid year on year improvement in the pretax profit.
Its profit-before-tax settle 587.5% higher year-on-year to N509.35 billion. After accounting for a higher income tax charge of 52.21 billion, its net profit came stronger at N457.13 billion, representing 685.9% year on year growth.
