GTCO Plc has started clinging near its 52-week high after the financial services company’s earnings performance in the third quarter of 2024. The banking stock price climbed to N53.7 on the Nigerian Exchange trading platform, reflecting investors’ confidence on its earnings prospects and dividend expectations.
According to the Senior Analysts Team, GTCO market capitalisation surged to N1.58 trillion, making the orange branded financial services group the most valuable banking stock in the market. With the latest rally, the stock had breached N53.95 which was its initial highest price, and surged to N54.50.
At the current market price, the bank share price is trading less than 1.5% to its best price over the last 12 months on the Nigerian Exchange. In its latest unaudited financial statement, GTCO grew profit by 195% to N1.085 trillion. In 9M-24, GTCO reported a 161.7% year on year growth in interest income to N980.34 billion. This was supported by its core banking operation and non-interest related earnings.
The group generated higher revenue from investment securities which increased by 270.6% to N416.95 billion and loans and advances to customers surged by 84.8% to N392.33 billion in 12 months.
The income spiked significantly due to interest rate repricing after Nigeria’s successive monetary policy rate hikes as part of efforts to anchor headline inflation which has gone dirty.
Details from the results showed that interest expense surged by 158.2% to N198.86 billion. Eventually, the net interest income settled 162.6% higher at N781 billion, following the decline in loan impairment charges in the period, according to analysts.
Non-interest income (NII) grew by 95.2% to N796.22 billion, spurred primarily by the fair value gains on financial instruments. The expansion in non-interest income, alongside the growth in net interest income, led to a 145.8% year on year increase in operating income to N1.51 trillion.
GTCO’s operating expenses grew by 61.3% year on year to N294.68 billion, with pressure stemming from personnel expenses, technological costs, and AMCON levy.
Overall, profit before tax advanced by 181.5% year on year to N1.22 trillion, while profit after tax grew faster by 195.3% year on year to about NGN1.09 trillion. #GTCO Market Value Hits N1.58trn after Earnings Beat
