Lagos, Nigeria – Guaranty Trust Holding Company Plc (GTCO) has achieved a historic milestone, posting a pre-tax profit of N1.266 trillion in its audited 2024 full-year financial results. This marks a significant 108% increase from the N609.3 billion recorded in 2023, making it the highest profit in the bank’s history.
GTCO also reported gross earnings of N2.148 trillion, reflecting an 81% rise from the N1.186 trillion posted the previous year. Profit after tax surged by 88.4% to N1.017 trillion, demonstrating the bank’s resilience in navigating Nigeria’s complex economic landscape.
In a move to reward shareholders, GTCO has declared a final dividend of N7.03 per share, bringing the total dividend for the year to N8.03 per share—a 151% increase compared to 2023. The final dividend will be paid on April 24, 2025.
Nigerian Banks Thrive Despite Economic Uncertainty
Nigeria’s banking sector has remained robust despite economic challenges, including high inflation, exchange rate volatility, and rising interest rates. Many banks have benefited from higher yields on fixed-income securities, increased interest income, and a strong deposit base.
The depreciation of the naira has also played a significant role, as banks with substantial foreign currency holdings have reported substantial revaluation gains, boosting their overall profitability.
GTCO capitalized on these trends by increasing its investment in high-yield securities, further strengthening its financial performance.
Interest Income and Deposit Growth Drive Strong Results
GTCO’s primary revenue driver remained interest income, accounting for over 62% of total earnings. The bank recorded N1.342 trillion in interest income, a 143.6% year-on-year growth.
However, the composition of this income shifted notably. While interest income from loans and advances grew 73% YoY, its share of total interest income declined from 54.88% in 2023 to 38.91% in 2024.
Instead, GTCO significantly increased its investments in fixed-income securities, with interest income from investment securities rising by 230.15% to N582.856 billion, now accounting for 43.44% of total interest income. This shift underscores the bank’s strategy of maximizing returns in Nigeria’s high-interest-rate environment.
Surging Deposits and Rising Interest Expenses
GTCO’s total deposit base expanded by 44.78% year-on-year, reaching N10.013 trillion. This increase reflects a growing customer base, even amid economic uncertainties.
However, the cost of maintaining these deposits rose sharply. Interest expenses surged by 148.31% YoY to N283.215 billion, with customer deposits alone accounting for N220.46 billion—a 115% rise from the previous year.
Despite this increase, net interest income climbed 142.41% to N1.059 trillion, as revenue from investment securities and loans outpaced rising funding costs.
Non-Interest Income and Foreign Exchange Gains
GTCO also recorded impressive growth in non-interest income, driven by fees, commissions, and foreign exchange gains.
Key highlights include:
N56 billion from electronic banking fees
N32 billion from account maintenance charges
N34.8 billion from commissions on FX transactions
Additionally, GTCO posted N517.5 billion in unrealized fair value gains on financial instruments, up from N367.3 billion in 2023, primarily driven by foreign currency revaluation gains following the naira’s devaluation.
Strong Balance Sheet and Shareholder Value Creation
GTCO’s total assets grew by 52.67% YoY, reaching N14.796 trillion, while loans and advances increased by 12.32% to N2.786 trillion.
Shareholders’ funds also saw a significant boost, rising 83.6% to N2.712 trillion, while retained earnings more than doubled to N1.320 trillion—a 127.55% increase year-on-year.
With a strong capital base and consistent profitability, GTCO remains committed to delivering value to its shareholders while leveraging strategic investments to sustain long-term growth.
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