GTCO Plc has announced its third-quarter results for 2024, revealing a pre-tax profit of N215.69 billion. This figure represents a substantial increase from the N105.8 billion recorded during the same period in 2023. The impressive performance in the third quarter has propelled the company’s pre-tax profits for the first nine months of the year to an unprecedented N1.2 trillion, marking a historic achievement in the financial services sector.
This significant milestone follows the company’s earlier success in reaching the N1 trillion mark in profit after tax for the first time, further establishing GTCO as a trailblazer in the industry. The financial holding company has also reported total assets of N15.6 trillion, another first in its history, along with net assets soaring to N2.62 trillion.
An examination of the financial results reveals that the N215.69 billion pre-tax profit for the third quarter, while more than double that of the previous year, fell short of the impressive N509.3 billion and N494.4 billion recorded in the first and second quarters of 2024, respectively. This decline can be attributed to a significant drop in other operating income, which plummeted to a loss of N52.8 billion compared to a profit of N305.3 billion in the preceding quarter.
The company also noted an unrealized gain on forward transactions of N32.1 billion for the first nine months, a decrease from N130.2 billion reported in the first half of the year. However, despite these challenges, GTCO achieved the remarkable feat of exceeding N1 trillion in profit after tax.
Key components of the financial results include a net interest income of N781.48 billion, a staggering increase of 162.6% year-on-year. This growth was driven by higher interest-earning assets and a favorable interest rate environment, showcasing the company’s adept asset allocation strategy, particularly in fixed-income securities.
Additionally, net fees and commission income nearly doubled, reaching N158.55 billion, reflecting a year-on-year increase of 92.2%. This growth underscores GTCO’s successful diversification strategy, tapping into non-interest revenue sources such as credit-related fees, e-business income, and various banking services. In an era where traditional lending margins can be narrow, this robust increase in fee income highlights the company’s resilience and commitment to engaging effectively with its customer base.
GTCO’s financial results for the first nine months of 2024 not only demonstrate its exceptional profitability but also reflect its strategic adaptability in a competitive financial landscape. As the first bank to achieve these milestones, GTCO continues to set the standard for excellence in the financial services sector.
