Guaranty Trust Holding Company (GTCO) Plc has seen its market capitalization rise by 8.3% to approximately N2.4 trillion, driven by strong investor sentiment following the group’s stellar financial performance for the 2024 fiscal year.
The orange-branded financial services giant is attracting heightened interest in the equities market, with its share price edging close to its all-time high of N70. As of Friday’s trading session, GTCO shares settled at N69.40, with 20.86 million units valued at N1.45 billion exchanged—indicating rising offshore participation and possible blocked transactions due to large trade volumes.
The renewed investor confidence is buoyed by the company’s impressive earnings. According to its audited results, GTCO’s profit before tax surged by 107.8% year-on-year to N1.3 trillion, while net profit rose by 88.6% to N1.0 trillion in the 2024 financial year.
Analysts attribute the bumper earnings to significant income from investment securities, bolstered by the prevailing double-digit interest rate environment. Notably, the group’s return on average equity (ROAE) climbed to 48.6%, up from 44.8% in the previous year.
GTCO’s capital strength has also improved markedly. Following its recent capital raise, the group transferred over N910 billion into retained earnings, resulting in a robust Capital Adequacy Ratio (CAR) of 39.3%—one of the highest buffers in the industry relative to risk-weighted assets.
The total tax paid by the group in 2024 stood at N248.8 billion, which includes a windfall tax of N51.2 billion.
In a statement to the Nigerian Exchange, the company’s management proposed a final dividend of N7.03 per share. When combined with the interim dividend of N1.00 per share, the total dividend for the year amounts to N8.03 per share, reflecting an 11% dividend yield—the highest in the market.
GTCO announced that the dividend will be paid mid-April to shareholders whose names appear on the register as of April 15, with the closure of the register set for April 16.
Market watchers believe GTCO’s consistent performance and investor-friendly payout position the group as one of the most attractive financial stocks in Nigeria’s capital market.