Guaranty Trust Holdings Company (GTCO) Plc reported record third quarter (Q3) profit, buoyed by foreign exchange (FX) gains as higher interest bearing assets underpinned net interest income.
One of the largest banks in Nigeria saw profit after tax (PAT) surge by 181.88 percent to N367.41 billion in September 2023 from N130.34 billion as at September 2022.
The bottom line growth in GTCO Q3 profit was largely driven by N334.35 billion foreign exchange revaluation gains as the currency devaluation by the regulator is a boon for lenders who have foreign currency assets in their balance sheet.
Net interest income spiked 56.85 percent to N297.53 billion, predominantly boosted by higher rates by the central bank.
The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) increased the benchmark policy rate (MPR) by 25 basis points to 18.75 percent from its initial 18.5 percent, representing the highest interest rate in 22 years.