GTCO Plc has announced its third-quarter results, revealing a pre-tax profit increase to N215.69 billion, up from N105.8 billion in the same quarter of 2023.

These third-quarter earnings have propelled the financial holding company's nine-month pre-tax profits to N1.2 trillion, marking the highest figure recorded in the financial services sector, surpassing the N1 trillion milestone reached in the first half of the year.

Additionally, this nine-month performance has allowed the bank to achieve a profit after tax of N1 trillion for the first time, making it the first bank to reach this significant milestone.

The bank also reported total assets of N15.6 trillion, a historic first for the institution, while net assets increased to N2.62 trillion, setting another record for the company.

A brief examination of the results indicates that GTCO reported a pre-tax profit of N215.6 billion for the quarter in question.

Although this amount more than doubled the profit from the previous year, it was lower than the N509.3 billion and N494.4 billion recorded in the first and second quarters of the year, respectively. 

A more detailed analysis of the financial statements reveals that the decline in pre-tax profits was primarily due to a significant drop in other operating income, which shifted to a loss of N52.8 billion from a profit of N305.3 billion in the second quarter. 

This income line had contributed N324.9 billion in the first quarter of the year. Furthermore, the company reported an “unrealised gain on forward transactions” of N32.1 billion for the first nine months of this year, a decrease from N130.2 billion in the first half.

Despite the recent decline, the HoldCo has achieved a significant milestone by surpassing the N1 trillion profit after tax threshold for the first time, making it the first entity in the financial services sector to reach this achievement.

GTCO reported a net interest income of N781.48 billion, representing an impressive year-on-year increase of 162.6%. This growth was fueled by an expansion in interest-earning assets and elevated interest rates, enabling GTCO to capitalize on a favorable interest rate environment. The robust performance in net interest income underscores GTCO’s strategic asset allocation, which has favored fixed income securities in light of rising interest rates.

Additionally, net fee and commission income nearly doubled to N158.55 billion, reflecting a remarkable year-on-year increase of 92.2%. This surge in fee-based revenue highlights GTCO’s diversification strategy, with income derived from various non-interest sources, including credit-related fees, e-business income, account maintenance charges, transaction fees, ancillary banking services, and more. In a sector where traditional lending margins can be narrow, this significant growth in fee income demonstrates GTCO’s adaptability and strong engagement with its customer base.