Guaranty Trust Holding Company PLC (GTCO), Nigeria’s third-largest bank by market cap, witnessed its stock soar by 10.8% over five days following the release of its audited financial results for 2024 on March 28th.
At the heart of GTCO’s stock surge lies its exceptional financial performance for the year ended December 31, 2024. The company reported a profit after tax of N1,01 trillion, an 88.4% leap from 2023’s N539 billion and 405% increase from 2022’s N169.1 billion. This milestone marks GTCO as one of Nigeria’s first financial institutions to surpass the N1 trillion profit threshold.
Historical data indicate that the stock reached a 52-week high of N69. Year to date, the bank’s stock has gained 22%, 30.73% in the last year, and 302% in the last 5 years.
GTCO is listed on both the NGX and the London Stock Exchange (LSE) and is ranked as one of the top-valued stocks on the NGX, with a market capitalization reaching NGN 2.38 trillion, with a price-to-earnings ratio of 1.95.
The bank’s financials have been growing astronomically for the past five years, with its 2024 financial statement recording its peak.
The 40% gain over the past year, from April 3, 2024, to April 3, 2025, reflects GTCO’s consistent strong performance throughout 2024. Historical data indicates that by April 2, 2024, the stock reached a 52-week high of N53.05, and reports from mid-2024 show year-to-date gains of 16.74% by July, closing at N47.35 per share. This performance was underpinned by robust financial results, including a Q1 2024 profit before tax of N509.3 billion, a 587.5% increase from the previous year
By the third quarter of 2024, pre-tax profits had already hit N1.2 trillion for the first nine months, crossing the N1 trillion profit after tax mark for the first time, a milestone in the financial services sector
Interest income remained a primary driver, contributing over 62% to gross earnings in 2024, with a notable 73% year-on-year growth in interest from loans and advances, though its share declined, offset by a 230.15% surge in investment in securities
These factors, combined with disciplined capital management and robust risk management practices, likely contributed to the stock’s appreciation over the year.
The CEO, Mr. Segun Agbaje, highlighted the resilience of the business, driven by a well-diversified earnings base across banking and non-banking subsidiaries, all profit and loss positive
Investors interpret such growth as a signal of effective management and a strong market position within the Nigerian banking sector, directly fueling its stock upward trend.
GTCO announced a total dividend of N8.03 per share for 2024, a 151% increase from 2023’s N3.20 per share. Scheduled for payment on April 24, 2025, this generous payout not only rewards shareholders but also underscores the company’s confidence in its cash flow stability.
The company’s strong financials, doubling profit to over N1 trillion and a 151% dividend hike, resulted in the surge of the bank’s stock. Its undervaluation and continuous upward trend of its stock fuel the flames of investor enthusiasm.
