By Chinwendu Obienyi
Guaranty Trust Holding Company Plc (GTCO) has posted a profit before tax (PBT) of N151.907 billion for the nine months ended September 30, 2021, in contrast to N167.351 billion posted in 2020, accounting for a drop of 9.2 per cent.
This is contained in the bank’s unaudited financial result released by the Nigerian Exchange Limited (NGX) in Lagos and it revealed that the company’s group’s net interest income stood at N162.942 billion against N189.736 billion recorded in the corresponding period of September 2020, while its Profit After Tax (PAT) stood at N129.40 billion as against N142.28 billion recorded in the same period of 2020.
Commenting on the results, the Group Chief Executive Officer of Guaranty Trust Holding Company Plc (GTCO Plc), Segun Agbaje, said the bank’s performance validated the resilience of its balance sheet, in spite of the challenges in the operating environment and further justified the bank’s decision to diversify its earnings by going beyond banking in creating long-term value for its discerning stakeholders.
He added that the group is looking at replicating its digital-first, customer-centric banking strategy in the wealth management and payment spaces to rapidly scale our service offerings in line with our long-term strategy.
“As businesses and households continue to recover from the lingering impact of COVID-19 pandemic, our resolve to stand with our customers and communities through the recovery process is yielding the desired results. Ultimately, we aim to improve the lives of our stakeholders and build partnerships with our communities”, Agbaje stated
Overall, the Group continues to post one of the best metrics in the Nigerian financial services industry in terms of key financial ratios: post-tax Return on Equity (ROAE) of 20.8 per cent, post-tax Return on Assets (ROAA) of 3.4 per cent full impact Capital Adequacy Ratio (CAR) of 23.8 per cent and Cost to Income ratio of 44.9 per cent.
However, analysts at Cordros capital believed that the HoldCo’s earnings growth remained in the negative territory mainly due to its deteriorating income from investment securities. According to them, this significantly lower funded income performance outweighed the funding cost reductions and ultimately pressured bottom-line performance. Interest income declined by 14.5 per cent year-on-year (y/y) to N195.04 billion due to lower gains from investment securities (-41.4 per cent y/y to N49.91 billion) and cash balances with banks (-32.3 per cent y/y to N3.86 billion).