Guaranty Trust Holding Company Plc has reported an increase of 0.7 per cent in net profit, reaching N130.35 billion in the first nine month of this year, from N129.40bn last year.
However, the bank had a higher exposure to income tax of 74.9%, rising to N39.38bn, from N22.51bn last year, according to a statement it filed to the Nigerian Exchange Limited after market closed on Tuesday.
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The group recorded 11.7% in its gross profit which rose to N169.72bn from January to September, from N151.91bn it posted in the same period last year.
GTCO said its interest expense rose by 33.4% to N42.80bn. Cordros said this was driven by higher fees expensed on customer deposits, which rose by 36.7 per cent to N39.35bn, financial institutions by 8.4% to N1.23bn, while borrowings inched up 7.6% to N2bn.
Commenting on the figures, Cordros said: “We like that GTCO could keep its costs at bay, seeing as the cost-to-income ratio expanded marginally by 0.4% amid the inflationary pressures in the operating environment”
It however expressed its concerns over the bank’s marginal growth in its non-funded income, noting it would seek management clarity on this.
“For the rest of the year, we are optimistic that HoldCo’s appetite for risky assets and higher yields in the fixed-income market will support earnings.”
GTCO lost 10 kobo on Wednesday to close at N18.20.