GT Bank's 2023 Financial Report Reveals Strong Retail Deposits and Institutional Loans

GT Bank's retail customer deposits reached N3.85 trillion, while institutional and wholesale customers accessed N2.146 trillion in loans. The Group reported a profit before tax of ₦509.3 billion, representing a 587.5% increase over the corresponding period in 2023.

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Bijay Laxmi
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GT Bank's 2023 Financial Report Reveals Strong Retail Deposits and Institutional Loans

GT Bank's 2023 Financial Report Reveals Strong Retail Deposits and Institutional Loans

Guaranty Trust Holding Company Plc (GTCO) has released its unaudited consolidated and separate financial statements for the period ended March 31, 2024, revealing significant growth in retail customer deposits and institutional and wholesale customer loans.

According to the report, GT Bank's retail customers' deposits reached N3.85 trillion, accounting for 54.4% of the bank's total customer deposits. However, retail customers accessed only N188 billion in consumer lending from the bank.

Why this matters: This report highlights the bank's ability to effectively serve both retail and institutional customers, which is crucial for the overall health of the Nigerian banking industry. The significant growth in retail deposits and institutional loans also has implications for the country's economic growth and development.

On the other hand, institutional and wholesale customers accessed N2.146 trillion in loans from GT Bank, contributing a substantial 71% to the group's pre-tax profit. These customers accounted for 86.5% of the banking group's loans profile and contributed N1.16 trillion in customers' deposits.

The Group reported a profit before tax of ₦509.3 billion, representing a 587.5% increase over ₦74.1 billion recorded in the corresponding period ended March 2023. The Group's loan book (net) increased by 21.9% from ₦2.48 trillion in December 2023 to ₦3.02 trillion in March 2024, while deposit liabilities increased by 26.0% from ₦7.55 trillion to ₦9.51 trillion over the same period.

Commenting on the results, Mr. Segun Agbaje, Group Chief Executive Officer of Guaranty Trust Holding Company Plc, stated: "Our first quarter results reflect the unfolding value of what we have created in all our business verticals through the Holding Company Structure... We are positioned to compete effectively on all fronts and fulfill all our customers' needs under a unified, thriving financial ecosystem."

The Group's balance sheet remained well-structured, diversified, and resilient, with total assets and shareholders' funds closing at ₦13.0 trillion and ₦2.0 trillion, respectively. Full Impact Capital Adequacy Ratio (CAR) remained strong, closing at 24.9%, while asset quality was sustained, with IFRS 9 stage 3 loans improving to 3.1% in March 2024 from 4.2% in December 2023.

GT Bank's 2023 financial report highlights the bank's strong performance in the retail and institutional sectors. The significant growth in retail customer deposits and the substantial contribution of institutional and wholesale customer loans to the group's pre-tax profit demonstrate the bank's ability to effectively serve both segments. With a well-structured balance sheet and strong capital adequacy ratio, GT Bank is well-positioned to continue delivering value to its stakeholders in the dynamic Nigerian banking landscape.

Key Takeaways

  • GT Bank's retail customer deposits reached N3.85 trillion, 54.4% of total deposits.
  • Institutional and wholesale customers accessed N2.146 trillion in loans, 71% of pre-tax profit.
  • Profit before tax increased by 587.5% to ₦509.3 billion in Q1 2024.
  • Loan book (net) increased by 21.9% to ₦3.02 trillion, deposits by 26.0% to ₦9.51 trillion.
  • GT Bank's balance sheet remains well-structured, diversified, and resilient with a 24.9% CAR.