GTCO Plc has released its 2024 full-year audited accounts, revealing a record pre-tax profit of N1.266 trillion, up from N609.3 billion a year earlier.
The bank holding company also reported a surge in gross earnings, rising to N2.148 trillion from N1.186 trillion reported a year earlier.
GTCO also posted a profit after tax of N1.017 trillion, an 88.4% rise from the N539.6 billion reported a year earlier. This represents the highest profit ever reported by the bank in its history.
As part of the earnings announcement, the bank announced a final dividend of N7.03 per share, payable on April 24, 2025. This brings the total dividend for the 2024 financial year to N8.03 per share, representing a 151% increase in payout.
Key highlights (2024 v. 2023):
- Gross earnings: N2.148 trillion; +81.07% YoY
- Interest income: N1.342 trillion; +143.63YoY
- Interest expense: N283.215 billion; +148.31% YoY
- Net interest income; N1.059 trillion +142.41% YoY
- Impairment charges: N136.662 billion +32.74% YoY
- Net interest income after impairment charges: N921.924 billion +176.24% YoY
- Net fees and commission income: N189.711 billion +73.37% YoY
- Profit after tax: N1.266 trillion +107.82% YoY
- Basic EPS: N35.44 +85.84% YoY
- Cash and cash equivalent with banks: N4.673 trillion +102.33% YoY
- Loan and advances: N2.786 trillion +12.32% YoY
- Total Assets: N14.796 trillion +52.67% YoY
- Customers’ deposit: N10.013 trillion +44.78% YoY
- Share capital & premium: N346.299 billion +150.60% YoY
- Retained earnings: N1.320 trillion, +127.55% YoY
- Shareholders’ fund: N2.712 trillion +83.60% YoY
Cursory Analysis
A review of the financial statements indicates that interest income remained the primary driver of the group’s gross earnings, contributing over 62% in 2024.
However, there was a notable shift in its composition. Interest income from loans and advances grew by 73% YoY, yet its share of total interest income declined from 54.88% in 2023 to 38.91% in 2024.
Meanwhile, investment in securities both at amortized cost, FVTPL and FVOCI surged by 230.15% to N582.856 billion, accounting for 43.44% of interest income.
On the cost side, interest expenses surged by 148.31% YoY to N283.215 billion, with customers’ deposits accounting for 78% (N220.46 billion), an 115% increase from the prior year.
This sharp rise in interest expenses correlates with the significant growth in customer deposits, which expanded by N2.6 trillion (+35% YoY) to N10 trillion.
While this signals strong deposit mobilization, it also indicates that GTCO is paying more to retain and attract deposits, likely due to higher interest rate environments and increased competition for funding.
However, despite the rise in interest expenses, net interest income still grew by an impressive 142.41% to N1.059 trillion, suggesting that higher yields on assets (particularly investment securities) outpaced the cost of deposits.
The net fees and commission income driven by the group’s e-business, account maintenance charges, and commission on foreign exchange deals and moderate growth in fees and commission expenses contributed to the bottom-line growth.
- The bank earned about N56 billion, N32 billion and N34.8 billion from electronic-related fees, account maintenance charges and commission on foreign exchange deals.
- With bank charges of N24 billion, fees and commission expenses moderated at N31.5 billion.
Another critical success factor to GTCO’s bottom line is its other income.
The bank recorded an unrealized fair value gain on financial instruments of N517.500 billion (2023: N367.266 billion)
