GTCO yesterday held its H1 2025 earnings call. Here are a few key points from the call. Id be updating this article, all through the day. 

You can listen to the call here (only 46 minutes long so wont take a lot of time). 

Group CEO Segun Agbaje on the results as a whole

Segun on the H1 2025 results 

Its really all core earnings. The loan book is up 20.5%. This really is the first time we  have pushed like this in the last 5/6 years and we have only just started. 

Fixed income securities went up only 17%. We arent pushing fixed income securities. We have pushed the loan book. We only grew cash 2%. (The cash in essence being seen is the dollar loan book). We arent growing that aggressively because the yields there are lower… The split in the loan book today is 52/48. So there is no aggressive dollar loan book growth. If you look at deposits, depsoits have grown 19%. So this is really core income that youre seeing.

The revaluation is derviatibe gains and that profit is only 6.5 billion. We are very happy with the qualify of earnings. It is really cash based.

We got a CRR release of N230 billion. That means we can deploy it into loans. We can deploy it into fixed income. We are not going to do anything crazy to growt the loan book. We think we can do a 30% loan book growth going forward. As you can see, we are at 20.5%

Turning on the lending taps

If you look at our asset allocation going forward, you will start to see a bit more aggression with the loan book quality. Low risk. You will see us play the fixed income play book because it is still profitable but we might not grow it fast. You will see cash and cash equivalent come down. Basically that is what you should expect in terms of asset allocation going forward. You should expect that there will be more of the loan book in local currency versus foreign currency.

Why the interim dividend was left flat (despite being able to pay more)

You dont blow a full time whistle at half time. An interim dividend is symbolic. We have chosen to pay one Naira, which means we can use the rest of the year to work with the income we have. 

If you take the quality of the results, you would see that if you take the PAT and you back out 15% statutory reserves and 5%…. That tells you how much we could have paid in dividends. That’s how strong the quality of earnings are.

We will retain our 60% policy (policy of paying out 60% of dividends). So very easily you can work backwards, what we could have paid….

Oil and gas loan writeoff in Q2

We have completely derisked the balance sheet. We have an oil and gas name that most people might take the position that it is still performing, but we have taken the position that we dont like the performance. So we basically wrote that off and we will recover our money. I have chosen at this point not to mention the name because  a lot of people still see it as performing, on their books.

The benefit

What that has done for our loanbook is that you will see stage 2 is 4.8%. Stage 1 is 94%. SO we are less than 2% in stage 3. We think it is the prudent thing to do. If in the second half of the year it happens to be different and the rest of the market is correct and we are wrong, then we will write it back.