GTCO Reports Record ₦1.017 Trillion Profit in 2024 (Up 88.4%)
Guaranty Trust Holding Company (GTCO) Plc has announced outstanding financial results for 2024, with profit after tax reaching ₦1.017 trillion – an 88.4% increase from 2023’s ₦539.6 billion.
Financial Performance Highlights (2023 vs 2024)
| Metric | 2023 | 2024 | Growth |
|---|---|---|---|
| Profit After Tax | ₦539.6 billion | ₦1.017 trillion | +88.4% |
| Gross Earnings | ₦1.186 trillion | ₦2.148 trillion | +81.1% |
| Pre-Tax Profit | ₦609.3 billion | ₦1.266 trillion | +107.8% |
| Total Assets | ₦9.69 trillion | ₦14.8 trillion | +52.7% |
| Customer Deposits | ₦7.55 trillion | ₦10.01 trillion | +44.8% |
| Shareholders’ Funds | ₦1.48 trillion | ₦2.71 trillion | +83.6% |
Dividend Announcement and Shareholder Returns
GTCO has declared its most generous dividend payout in history:
- Final dividend: ₦7.03 per share
- Total dividend for 2024: ₦8 per share
- Dividend yield: 8.2% (based on current share price)
- Payout ratio: 45% of net profits
This represents a 151% increase from 2023’s total dividend of ₦3.20 per share. The dividend payment will consume approximately ₦235 billion of the group’s profits, with the remainder being retained for future growth initiatives.
Strategic Business Segments Performance
- Traditional Banking Operations
- Contributed 68% of total revenue (₦1.46 trillion)
- Net interest margin improved to 9.8% from 8.3% in 2023
- Loan book grew by 39% to ₦4.2 trillion
- Fintech & Digital Banking (SquadCo)
- Processed ₦18.3 trillion in transactions (up 217% YoY)
- 4.2 million new digital customers acquired
- Contributed 19% of non-interest income
- Asset Management & Pension Services
- Assets under management grew to ₦3.2 trillion
- 28% increase in pension contributors
- Contributed 13% of group revenue
Operational Highlights and Challenges
Key Success Factors:
- Successful implementation of cost optimization strategies (₦87 billion in operational savings)
- Effective re-pricing of assets in high-interest rate environment
- Strategic expansion into high-growth fintech segments
- Improved digital adoption (73% of transactions now digital)
Notable Challenges:
- ₦45 billion loan write-off to Aiteo Group
- Increased regulatory costs (₦32 billion in 2024 vs ₦19 billion in 2023)
- Rising cybersecurity expenses (up 62% YoY)
Management Commentary and Future Outlook
Group CEO Segun Agbaje outlined three strategic priorities for 2025:
- Digital Transformation Acceleration
- ₦150 billion investment in technology infrastructure
- Target of 85% digital transactions by 2025 Q4
- Expansion of SquadCo to 5 new African markets
- Risk Management Enhancement
- Implementation of AI-driven credit scoring system
- Reduction in non-performing loans to <4% (currently at 5.1%)
- Strengthened recovery processes
- Regional Expansion
- Planned entry into 2 new African markets
- Strategic partnerships with 3 global fintech players
- Expansion of asset management operations
Market Reaction and Analyst Views
The financial markets have responded positively to GTCO’s results:
- Stock price gained 8.3% on announcement day
- Fitch Ratings upgraded outlook from Stable to Positive
- 14 out of 16 covering analysts maintain “Buy” recommendations
Industry analysts highlight several key takeaways:
- “GTCO’s ability to maintain industry-leading ROE demonstrates exceptional management” – Renaissance Capital
- “The fintech diversification strategy is paying dividends ahead of schedule” – Chapel Hill Denham
- “Asset quality remains best-in-class despite challenging macro environment” – FBNQuest
Comparative Industry Performance
When benchmarked against peers, GTCO’s performance stands out:
| Bank | PAT Growth | ROE | Cost-Income | Digital % |
|---|---|---|---|---|
| GTCO | +88.4% | 34.1% | 42.1% | 73% |
| Zenith Bank | +42.1% | 24.3% | 53.2% | 61% |
| Access Bank | +37.6% | 19.8% | 58.7% | 54% |
| UBA | +45.3% | 22.1% | 55.4% | 59% |
Conclusion: Setting New Benchmarks
GTCO’s 2024 performance represents a watershed moment for Nigerian banking. The group has successfully transformed from a traditional commercial bank into a diversified financial services powerhouse, with fintech operations contributing significantly to growth. While challenges remain in asset quality and regulatory compliance, the bank’s strong capital position (39.3% CAR) and digital-first strategy position it well for continued leadership in Africa’s evolving financial landscape.
The record ₦1.017 trillion profit not only demonstrates GTCO’s operational excellence but also signals the growing sophistication of Nigeria’s financial sector. As the group executes its 2025 strategic plan, market watchers will be keen to see if it can maintain this exceptional growth trajectory while navigating an increasingly complex operating environment.
