Nigerian banker Segun Agbaje leads GTCO to $552-million profit in H1 2024

Omokolade Ajayi -
Key Points
  • GTCO's half-year profit surged by 222.9%, reaching $552 million, driven by strong earnings growth in interest and fee-based income.
  • Increased interest and fee income drove profit, with gross earnings rising from $410.3 million to $847.9 million.
  • The company’s assets grew to $8.85 billion, with a proposed capital raise of $260 million for expansion in Africa.

Guaranty Trust Holding Company Plc (GTCO), a Lagos-based financial holding company led by Nigerian banker Segun Agbaje, reported a remarkable performance in the first half of 2024, with a profit of $552 million, marking a 222.9 percent increase from the previous year.

According to recently released financial half-year results, GTCO’s profit leaped from N280.48 billion ($171 million) in the first half of 2023 to N905.57 billion ($552 million) in the same period of 2024. This significant growth aligns with GTCO's ambitious target to become the first Nigerian company to achieve a $1 billion profit milestone.

Interest, fees drive profit surge

The surge in profit is attributed to a substantial increase in gross earnings, which rose from N672.6 billion ($410.3 million) to N1.39 trillion ($847.9 million). Key drivers included a boost in interest income, which grew from N214.45 billion ($131 million) to N607.7 billion ($371 million).

Additionally, fee and commission income saw a notable rise from N58.42 billion ($35.6 million) to N113.92 billion ($69.5 million), and the company recorded an unrealized fair value gain on financial instruments of N493 billion ($300.7 million) during the period.

Segun Agbaje leads GTCO's strategic expansion

GTCO, headquartered in Lagos, provides a wide range of services including retail and investment banking, pension and asset management, and payment solutions. Under Agbaje, who owns a 0.14 percent stake, GTCO has expanded its operations strategically, focusing on both its traditional banking activities and its growing non-banking financial services sector.

Its proposed N400.5 billion ($260 million) capital raise aims to bolster GTCO’s growth initiatives. The lender plans to issue nine billion new shares at N44.5 ($0.029) per share. Expansion efforts will span domestic and international markets, with investments planned for Senegal, Cote d’Ivoire, Ghana, and Kenya, alongside strengthening existing market positions.

GTCO grows assets, proposes dividend

The company’s financial strength is further evidenced by its total assets, which surged from N9.69 trillion ($5.9 billion) at the end of 2023 to N14.51 trillion ($8.85 billion) by June 30, 2024.

Meanwhile, total equity and retained earnings rose significantly, with total equity increasing from N1.477 trillion ($901 million) to N2.399 trillion ($1.46 billion), and retained earnings growing from N580.03 billion ($354 million) to N1.27 trillion ($774 million).

In light of its strong performance and robust financial health, GTCO's board of directors has proposed an interim dividend of N1 ($0.00061) per share, resulting in a total payout of N29.43 billion ($17.95 million). This payout underscores the company’s commitment to returning value to its shareholders while continuing its strategic growth trajectory.