In the first half of 2023, GTCO unveiled its financial results, showcasing a remarkable performance with a significant surge in pre-tax profits, which soared by an impressive 217.09% when compared to the previous year, amounting to N327.398 billion.
Here are some key highlights comparing H1 2023 to H1 2022:
- Gross earnings skyrocketed to N672.603 billion, marking an astounding increase of 181.08% year-on-year.
- Interest income saw substantial growth, reaching N225.946 billion, a substantial 53.50% YoY rise.
- Interest expenses followed suit, with a notable surge to N48.487 billion, up by 84% YoY.
- Net interest income experienced a healthy boost, totaling N177.459 billion, reflecting a robust 46.84% YoY increase.
- Loan impairment charges took an astonishing leap, soaring to N82.962 billion, a staggering 2,257.52% YoY surge.
- After accounting for loan impairment charges, net interest income dipped to N94.497 billion, reflecting a 19.46% YoY decrease.
- Net income from fees and commissions amounted to N51.548 billion, showcasing an 8.83% YoY rise.
- Net trading gains on financial assets, however, contracted to N16.018 billion, down by 32.12%.
- Other income witnessed an exceptional upswing, climbing to N372.224 billion, an astounding 2,482.47% YoY growth.
- Net impairment charges on other financial assets amounted to N81.313 billion.
- The profit for the period soared to N280.482 billion, marking a remarkable 261.65% YoY increase.
- Earnings per share also exhibited robust growth, reaching 994 kobo, reflecting a substantial 268.15% YoY surge.
- The bank’s loans and advances to customers expanded to N2.315 trillion, showing a solid 22.78% growth.
- Cash and bank balances increased significantly to N2.295 trillion, up by 41.59%.
- GTCO’s total assets swelled to N8.51 trillion, indicating a notable 32.01% increase.
- Customer deposits showed remarkable growth, reaching N6.239 trillion, up by 39.10%.
The outstanding pre-tax profit growth is primarily attributed to the substantial expansion in gross earnings, driven by higher net interest income and significant gains from unrealized foreign exchange revaluation.
The increase in interest income can be attributed to rising interest rates, fueled by an uptick in the Monetary Policy Rate (MPR) from 13% in June 2022 to 18.5% in June 2023.
The exponential growth in other income is mainly due to a staggering 19,033.34% YoY surge in unrealized gains from foreign exchange revaluation.