GTCO reported its 2023 Half-year results showing pre-tax profits grew by 217.09% year on year, reaching N327.398 billion.
Key highlights H1 2023 vs. H1 2022:
- Gross earning; N672.603 billion +181.08% YoY
- Interest Income; N225.946 billion +53.50% YoY
- Interest Expense; N48.487 billion +84% YoY
- Net interest income; N177.459 billion +46.84% YoY
- Loan impairment charges; N82.962 billion +2,257.52% YoY
- Net interest income after loan impairment charges; N94.497 -19.46% YoY
- Net income on fees and commission N51.548 billion +8.83% YoY
- Net trading gains on financial Assets; N16.018 billion -32.12%
- Other income; N372.224 billion +2,482.47% YoY
- Net impairment charge on other Financial Assets N81.313
- Profit for the period N280.482 billion +261.65% YoY
- Earnings per share 994 kobo +268.15% YoY
- Loans and advances to customers N2.315 trillion +22.78%.
- Cash and Bank balances N2.295 trillion +41.59%
- Total Assets N8.51 trillion +32.01%.
- Customers’ deposits N6.239 trillion +39.10%.
Insights: The significant pre-tax profit growth is attributed to substantial growth in gross earnings.
- This growth stems from higher net interest income and substantial gains from unrealized foreign exchange revaluation.
- Rising interest rates because of an increase in MPR and a 22.78% rise in loans and advances to customers drove interest income. The Monetary Policy Rate (MPR) increased by 5.5 basis points from 13% (June 2022) to 18.5% (June 2023).
- Additionally, other income surged due to a 19,033.34% YoY growth in unrealized gains from foreign exchange revaluation.
And over 85% of their staff are contract staff
I disagree that 85percent.of the staff are on contract..The annual report says otherwise. But there are other areas NGX is falling short:
Staff turnover is high
The risk of.delisting is high
No IPO is more than 5 years..Investor fatigue is setting has become evident
NGX has not.enough on investor enlightenment as Nigerians still prefer Ponzi schemes rather than NGX
NGX started life with the bond listing..Today it has become very irrelevant in the bond market only picking crumbs
The management preference for box rocking without.any.considerstion for market impact
Lack of internal quality control on their reports
Double dealing by Oscar Onyema on the recent CSCS shares issue
Above all SEC dislike for NGX is so paramount