GTCO’s 9-month profit rises to N130 billion amid spiralling costs
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Guaranty Trust Holding Company (GTCO), the parent company of cc Limited, saw its bottom line improve by less than one per cent in the first nine months of the year even when it posted considerable rises across major income sources.
The bank’s after-tax profit inched up by 0.7 per cent to N130.3 billion.
Nigeria’s second biggest lender by market value reported a net interest income of N189.7 billion, 16.4 per cent stronger than a year earlier, buoyed by interest from loans & advances to customers and investment securities at amortised rate.
Net fee and commission income similarly jumped, climbing to N58.3 billion from N51.8 billion a year ago.
It set apart a sum of N3.7 billion to cover loans whose possibility of being repaid has been weakened by repeated defaults by customers. That was 38.3 per cent lower than what it provisioned for the same period of last year.
In June, GTCO announced receipt of go-ahead from the Central Bank of Nigeria to start a payments unit named HabariPay, less than a year after it attained holding company status.
Segun Agbaje, group CEO of GTCO
Other income sank 31.3 per cent to N28.2 billion.
On the expenditure side, other operating costs climbed 19.1 per cent year on year, totalling N81.8 billion amid Nigeria’s runaway inflation, which touched 20.8 per cent in September.
The major pressure point here was occupancy costs, comprising expenses on diesel, fuel and electricity, which surged 64.7 per cent to N6.3 billion.
The financial services group incurred N23.3 billion in AMCON expenses relative to N21.9 billion one year prior.
Pre-tax profit stood at N169.7 billion, improving by 11.7 per cent. After-tax profit inched up by 0.7 per cent to N130.3 billion. Total assets expanded by 6.9 per cent to N5.8 trillion.
More than 40 per cent of GTCO’s net profit for the period was contributed in the third quarter during which bottom line stood at N52.3 billion.
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