Event

Guaranty Trust Holding Company (“GT HoldCo. or the Group”) reported a 120% year-on-year gross earnings growth to N1.19trn for FY 2023 audited financial result. Interest income grew by 69% year-on-year, while non-interest income grew astronomically by 197% year-on-year.

Operating income grew by 113% to N954.72bn, while operating expense jumped by 48% to N345.41bn. The growth in opex lagged the increase in operating income. Effectively, cost-to-income improved to 36% (FY 2022: 52%). Profit before tax rose by 185% year-on-year to N609.31bn and a lower effective tax charge led to a jump in profit after tax.

Q1 2024 Financial performance

Yet again, the Group reported an impressive financial performance according to their unaudited Q1 2024 results. Our findings revealed that gross earnings grew by 330% year-on-year. The strong performance was supported by a 171% year-on-year growth in interest income and a 6.4x jump in non-interest income.

Outlook

Based on the Q1 2024 performance, we see gross earnings climbing to N1.97trn (+66% year-on-year) which will be driven by a +108% and +30% year-on-year growth in interest and non-interest income, respectively. We project a 58% year-on-year growth in loan book which will be driven by the Oil & Gas sector (FCY loans), while we also see investment securities grow by 80% year-on-year as the Group takes advantage of the elevated interest rate environment.

Please follow the link “Guaranty Trust HoldCo FY 2023 & Q1 2024 – Revaluation Gains and Elevated Interest Rate Environment” to view the whole report.

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