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Tuesday, March 21, 2023

GTCO Pretax Profit Rises 11% to N103.25 billion

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Guaranty Trust Holding Company (GTCO) Plc announced today year-to-date pre-tax profit of N103.25 billion in the June 2022 period from N93.05 billion as at June 2021.

The lender also reported net interest income of N120.84 billion for the quarter ended June 30, 2022, representing a 12.88  percent increase from the corresponding period of 2021.

The strong net income was driven by strong lending and higher non-interest income, which validates stable earnings from fees on electronic service and other commissions as GTCO continues to invest in the latest technology while contemporaneously ensuring that the banking services reach customers in the rural areas.

Net interest income is defined as the difference between interest revenues and interest expenses. For financial institutions, interest revenues represent the interest payments the bank receives on their interest-bearing assets, while interest expenses are the cost of servicing interest payments to customers on their deposits.

GTCO interest income on loans and advances was up 16.74 percent to N147.20 billion in June 2022 from N126.09 billion the previous year.

Analysts say banks are benefitting from the gradual improvement in yield environment and they expect the hawkish tone of the central bank to be a boon for them.

The Monetary Policy Committee of the Central Bank of Nigeria has unanimously voted to increase the benchmark interest rate (monetary policy rate) to 14% from 13%, being the second hawkish move by the apex bank in 2022 following the rising rate of inflation.

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