GTCO Plc has reported a record pre-tax profit of N1.266 trillion for the 2024 financial year, a significant increase from N609.3 billion in the previous year.

The bank holding company also saw a sharp rise in gross earnings of N2.148 trillion, up from N1.186 trillion in the previous year.

GTCO’s profit after tax surges to record-breaking N1.017 trillion

Additionally, GTCO reported an 88.4 percent increase in profit after tax to N1.017 trillion from N539.6 billion the previous year. This represents the highest profit ever reported in the bank’s history. 

As part of its earnings announcement, GTCO declared a final dividend of N7.03 per share, payable on April 24, 2025. This marks a 151 percent increase in the payout, bringing the total dividend for the 2024 fiscal year to N8.03 per share.

GTCO reports N56 billion in e-transactions

The bottom line grew as a result of moderate increases in fees and commission expenses as well as net fees and commission income from the group’s e-business, account maintenance fees, and commission on foreign exchange transactions.

The bank received roughly N56 billion, N32 billion, and N34.8 billion in revenue from fees associated with electronic transactions, account maintenance fees, and foreign exchange commissions, respectively.

Fees and commission expenses were moderated at N31.5 billion, while bank charges totalled N24 billion.

Interest income is the main source of GTCO’s 2024 gross earnings

According to an examination of the financial statements, interest income continued to be the main source of the group’s gross earnings in 2024, accounting for more than 62 percent of total earnings.

But there was a noticeable change in its makeup. Although loan and advance interest income increased 73 percent year over year, its proportion of total interest income decreased from 54.88 percent in 2023 to 38.91 percent in 2024.

Investments in securities at amortised cost, FVTPL, and FVOCI, on the other hand, increased by 230.15 percent to N582.856 billion, or 43.44 percent of interest income.

On the expense side, interest costs increased by 148.31 percent year over year to N283.215 billion, of which 78 percent (N220.46 billion) came from customer deposits, a 115 percent increase over the previous year.

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GTCO’s customer deposits increase to N10 trillion

The notable increase in customer deposits, which increased by N2.6 trillion (+35 percent YoY) to N10 trillion, is correlated with this steep increase in interest costs.

This indicates strong deposit mobilisation, but it also indicates that GTCO is paying more to draw in and keep deposits, most likely as a result of more competitive funding markets and higher interest rate environments.

Net interest income increased by an astounding 142.41 percent to N1.059 trillion despite the rise in interest expenses, indicating that higher yields on assets—particularly investment securities—surpassed the cost of deposits.

Other revenue is another important component of GTCO’s profitability. The bank reported N517.500 billion in unrealised fair value gains on financial instruments (2023: N367.266 billion).

Key highlights of GTCO’s financial year result (2024 v. 2023):

• Gross earnings: N2.148 trillion; +81.07 percent YoY
• Interest income: N1.342 trillion; +143.63 percent YoY
• Interest expense: N283.215 billion; +148.31 percent YoY
• Net interest income: N1.059 trillion +142.41 percent YoY
• Impairment charges: N136.662 billion +32.74 percent YoY
• Net interest income after impairment charges: N921.924 billion +176.24 percent YoY
• Net fees and commission income: N189.711 billion +73.37 percent YoY
• Profit after tax: N1.266 trillion +107.82 percent YoY
• Basic EPS: N35.44 +85.84 percent YoY
• Cash and cash equivalent with banks: N4.673 trillion +102.33 percent YoY
• Loan and advances: N2.786 trillion +12.32 percent YoY
• Total Assets: N14.796 trillion +52.67 percent YoY
• Customers’ deposit: N10.013 trillion +44.78 percent YoY
• Share capital & premium: N346.299 billion +150.60 percent YoY
• Retained earnings: N1.320 trillion, +127.55 percent YoY
• Shareholders’ fund: N2.712 trillion +83.60 percent YoY