GTCO’s market value hits N1.58tn on investor confidence

GTCO Plc has reached close to its 52-week high following strong earnings performance in the third quarter of 2024.

The bank’s stock price on the Nigerian Exchange trading platform rose to N53.7, signaling investor confidence in its earnings outlook and dividend potential.

According to the Senior Analysts Team, GTCO’s market capitalization has surged to N1.58 trillion, making it the most valuable banking stock on the market. The stock recently surpassed its previous peak of N53.95, climbing to N54.50. At this price, GTCO’s shares are trading at less than 1.5 percent below their highest price over the past 12 months on the Nigerian Exchange.

In its latest unaudited financial report, GTCO’s profit rose by 195 percent to N1.085 trillion. For the first nine months of 2024, the bank recorded a year-on-year increase of 161.7 percent in interest income, amounting to N980.34 billion, driven by its core banking activities and additional non-interest income sources.

The group saw substantial revenue growth from investment securities, which increased by 270.6 percent to N416.95 billion. Loans and advances to customers also rose by 84.8 percent to N392.33 billion over the past 12 months. The growth in income was significantly supported by interest rate adjustments following Nigeria’s repeated hikes in the monetary policy rate, a measure aimed at controlling the nation’s inflation.

Details from GTCO’s financial report reveal that interest expenses rose by 158.2 percent to N198.86 billion. Net interest income, after a reduction in loan impairment charges, surged by 162.6 percent to N781 billion. Analysts attribute this strong performance to a well-managed interest expense strategy amid challenging economic conditions.

Non-interest income increased by 95.2 percent to N796.22 billion, primarily driven by fair value gains on financial instruments. This growth in non-interest income, along with the increase in net interest income, resulted in a 145.8 percent year-on-year rise in operating income, reaching N1.51 trillion.

GTCO’s operating expenses climbed by 61.3 percent year-on-year to N294.68 billion, due to rising personnel costs, investments in technology, and the Asset Management Corporation of Nigeria (AMCON) levy. Despite these increased expenses, the bank maintained strong profitability.

Overall, GTCO’s profit before tax rose by 181.5 percent year-on-year to N1.22 trillion, while profit after tax increased even more significantly, by 195.3 percent, reaching around N1.09 trillion.

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