Abiodun Jimoh
Guaranty Trust Holding Company Plc (GTCO) has seen its market value climb to N1.58 trillion, pushing its stock price close to a 52-week high after a stellar earnings performance in Q3 2024. The stock reached N53.7 on the Nigerian Exchange, driven by investor optimism surrounding GTCO’s impressive profit growth and future dividend potential.
In its recent unaudited financial report, GTCO announced a 195% year-on-year profit surge to N1.085 trillion for the nine months ending September 30, 2024. The group’s interest income also soared by 161.7% to N980.34 billion, bolstered by strong performance in both core banking operations and non-interest earnings.
Key highlights from the report include:
Investment Income: Up 270.6% to N416.95 billion, reflecting gains in securities investments.
Loans and Advances: Increased by 84.8% to N392.33 billion, supporting revenue growth.
Net Interest Income: Rose by 162.6% to N781 billion, driven by interest rate repricing and lower impairment charges
Non-interest income expanded significantly, up 95.2% year-on-year to N796.22 billion, largely due to fair value gains on financial instruments. Operating income reached N1.51 trillion, a 145.8% increase, while operating expenses rose by 61.3% to N294.68 billion due to higher personnel and tech costs.
Overall, GTCO’s profit before tax increased by 181.5% to N1.22 trillion, and profit after tax grew by 195.3% to about N1.09 trillion. With the stock now trading at N54.50, GTCO stands as the most valuable banking stock on the Nigerian Exchange, reflecting strong market confidence in its growth trajectory
