KEY POINTS

• Guaranty Trust Holding Company Plc reported ₦879.9 billion in profit before tax for the nine months ended September 2026, down 2.3 per cent from ₦900.8 billion a year earlier.
• Profit after tax fell to ₦614.6 billion from ₦699.6 billion.
• Total assets increased to ₦18.37 trillion, while customer deposits rose by 8.6 per cent to ₦13.98 trillion.
• The group’s Stage 3 loans ratio improved to 4.0 per cent from 5.0 per cent at the end of 2025.
• A ₦87.9 billion fair value loss and changes in Companies Income Tax regulations contributed to pressure on earnings.

MAIN STORY

Guaranty Trust Holding Company Plc (GTCO) reported a profit before tax of ₦879.9 billion for the nine months ended September 30, 2026, representing a 2.3 per cent decline from the ₦900.8 billion recorded in the corresponding period of 2025.

The financial results, contained in the group’s unaudited consolidated and separate statements released to the Nigerian Exchange Ltd. on Wednesday, showed that profit after tax also fell to ₦614.6 billion from ₦699.6 billion a year earlier.

GTCO attributed the performance partly to a fair value loss of ₦87.9 billion, although income from its core banking and other operations continued to grow. Interest income increased by 5.0 per cent, fees and commission income rose by 1.4 per cent, while trading income grew by 3.1 per cent.

The group’s net core earnings increased by 4.4 per cent to ₦1.505 trillion, with funded income accounting for 77.8 per cent of gross earnings. However, the company said changes in Companies Income Tax regulations affected capital allowance reliefs and contributed to the decline in profit after tax.

GTCO’s total assets rose by 3.5 per cent to ₦18.37 trillion in September from ₦17.76 trillion in December 2025. Shareholders’ funds stood at ₦3.5 trillion, while the group’s capital adequacy ratio was 34.2 per cent. At the banking subsidiary level, the ratio stood at 33.9 per cent.

The group also reported improvements in the quality of its loan portfolio. Its International Financial Reporting Standard 9 Stage 3 loans ratio, which measures loans that are credit-impaired, declined to 4.0 per cent from 5.0 per cent at the end of 2025. At the bank level, the ratio remained unchanged at 3.4 per cent.

GTCO’s cost of risk fell to 0.9 per cent from 2.2 per cent, while its coverage ratio for credit-impaired loans increased to 130.7 per cent from 106.9 per cent. The higher coverage ratio indicates that the group has increased the provisions available against these loans relative to their reported value.

Customer deposits increased by 8.6 per cent to ₦13.98 trillion from ₦12.87 trillion in December 2025. In contrast, the group’s net loan book declined by 4.1 per cent to ₦3 trillion, a development it linked to its approach to managing risk when creating new loans.

The group reported a pre-tax return on average equity of 34.0 per cent and a pre-tax return on average assets of 6.5 per cent. Its cost-to-income ratio stood at 31.2 per cent.

Commenting on the results, GTCO Group Chief Executive Officer Segun Agbaje said the business continued to grow its core earnings despite fair value losses and a challenging operating environment.

He said the group would continue to focus on risk management, efficiency, liquidity and capital strength while adapting its platforms and technology to changing customer needs.

THE ISSUES

GTCO’s results show a difference between growth in its underlying income and the final profit reported. Core earnings increased, but the group recorded lower profit before tax and profit after tax. The ₦87.9 billion fair value loss and changes affecting capital allowance reliefs help explain why stronger core income did not translate into higher overall profit.

For shareholders, the decline in profit after tax matters because it affects the earnings available to support future returns. The group’s reported returns on equity and assets remain important indicators of how effectively it uses shareholders’ funds and its assets to generate income, but the figures do not by themselves establish what dividend investors will receive.

The increase in deposits also needs to be considered alongside the decline in the loan book. More deposits provide a larger pool of customer funds, but a smaller net loan book means less money was tied up in loans at the reporting date. GTCO attributed this to its approach to risk asset creation. The results provided do not establish how much of the decline reflects deliberate restraint, repayments or other changes.

The improvement in the Stage 3 loans ratio and cost of risk suggests reduced pressure from credit-impaired loans relative to the measures reported. Higher coverage of impaired loans also provides a larger provision buffer. These indicators matter because unpaid loans can reduce bank income and require additional provisions, although they do not eliminate the possibility of future losses.

GTCO’s capital adequacy ratios, meanwhile, indicate the capital held relative to its risk-weighted exposures. Strong capital can help a bank absorb losses and continue operating, but it should be assessed alongside asset quality, profitability and the risks in its loan portfolio.

WHAT’S BEING SAID

“Our performance in the Q3 reflects the strength of a franchise built on scale, efficiency and discipline.” – Segun Agbaje, Group Chief Executive Officer, GTCO.

“In spite of a challenging operating environment and significant fair value losses in the period, our core earnings continued to grow.” – Segun Agbaje, Group Chief Executive Officer, GTCO.

“Our deposit base expanded strongly, our cost efficiency remains among the best in the industry, and our balance sheet remains strong, liquid and well capitalised.” – Segun Agbaje, Group Chief Executive Officer, GTCO.

“Looking ahead, we will always optimise risk-free returns wherever we see them and will always be positioned to take advantage of arbitrage opportunities as market conditions evolve, without compromising the quality of our risk assets.” – Segun Agbaje, Group Chief Executive Officer, GTCO.

WHAT’S NEXT

GTCO says it will continue to focus on managing risk, maintaining its capital and liquidity positions, and adapting its technology and customer platforms as market conditions change.

The next financial results will help show whether the growth in core earnings can translate into stronger overall profits and whether the group can sustain its deposit growth while managing its loan portfolio and credit risks.

Investors will also watch how the group’s earnings respond to fair value movements and the effects of the revised tax rules on its financial performance.

BOTTOM LINE

GTCO’s core earnings and deposits increased in the first nine months of 2026, while its assets expanded and reported loan-quality indicators improved. However, lower profit before tax and profit after tax show that growth in core income has not yet translated into higher overall earnings.

Source: NAN