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.