KEY POINTS
• GTCO’s half-year Profit Before Tax rose 0.4 per cent to N603.03 billion, despite a N46.2 billion fair value loss.
• Deposits climbed 10.3 per cent to N14.19 trillion, while the group’s loan book grew by just 0.5 per cent.
• The financial group declared an interim dividend of N1 per share and reported lower credit risk during the period.
MAIN STORY
Guaranty Trust Holding Company Plc (GTCO) recorded a near-flat half-year profit after gains from interest and trading income were partly offset by losses on the fair value of its financial assets.
The group reported N603.03 billion in Profit Before Tax for the six months ended June 30, representing a 0.4 per cent increase from the N600.6 billion recorded in the same period of 2025.
The result, contained in GTCO’s audited financial statements released to the Nigerian Exchange Ltd. (NGX) and London Stock Exchange (LSE) on Monday, came alongside an interim dividend of N1 per share.
The group’s income performance was stronger in some of its core areas. Interest income increased by 7.5 per cent, while trading income rose by 24.7 per cent during the period.
That growth was not fully reflected in the bottom line, however, after GTCO recognised a N46.2 billion fair value loss.
Despite the limited movement in profit, the group expanded its funding base considerably. Customer deposits rose from N12.87 trillion at the end of 2025 to N14.19 trillion by June, representing a 10.3 per cent increase.
Lending growth was considerably slower. Net loans increased by N20 billion, or 0.5 per cent, to N3.15 trillion from N3.13 trillion.
GTCO’s balance sheet also strengthened, with total assets reaching N18.6 trillion and shareholders’ funds standing at N3.3 trillion at the end of the reporting period.
The group recorded an improvement in credit risk indicators. Cost of risk declined to 0.6 per cent from 2.2 per cent a year earlier, while IFRS 9 Stage 3 loans represented 3.5 per cent of loans at the bank level and 4.6 per cent at group level.
Capital remained strong, with the group’s capital adequacy ratio at 34.9 per cent, compared with 29.2 per cent for its banking business.
GTCO Group Chief Executive Officer, Mr Segun Agbaje, said the results demonstrated the resilience of the group’s businesses despite the effect of fair value movements on reported earnings.
“Our half-year results speak to the strength of what we have built: a resilient franchise, a strong balance sheet and a business that no longer depends on banking alone.
“Fair value movements weighed on reported earnings, but the core business held firm. Interest and trading income grew, deposits strengthened, and asset quality improved at Group level,” Agbaje said.
He said the group would continue to use technology to expand its businesses beyond traditional banking, particularly in payments, pensions and funds management.
“Digital is our lever for scaling across Banking, Payments, Pension and Funds Management, and for building a more diversified and resilient financial services group,” he said.
GTCO’s pre-tax return on equity stood at 35.9 per cent, while pre-tax return on assets was 6.6 per cent. Its cost-to-income ratio was 31.5 per cent.
The holding company operates banking and non-banking financial services businesses across Africa and the United Kingdom.
THE ISSUES
- GTCO’s profit growth remained subdued even though interest and trading income increased significantly. The N46.2 billion fair value loss was a major factor limiting the overall earnings improvement.
- The group attracted substantially more deposits than it added to its loan book. Deposits increased by N1.32 trillion during the period, while net loans rose by only N20 billion.
- The stronger asset quality indicators provide a counterpoint to the modest profit growth. Lower cost of risk and improved Stage 3 loan ratios suggest reduced credit impairment pressure during the period.
WHAT’S BEING SAID
“Our half-year results speak to the strength of what we have built: a resilient franchise, a strong balance sheet and a business that no longer depends on banking alone.” — Segun Agbaje, Group Chief Executive Officer, GTCO
“Fair value movements weighed on reported earnings, but the core business held firm. Interest and trading income grew, deposits strengthened, and asset quality improved at Group level,” — Segun Agbaje, Group Chief Executive Officer, GTCO
“Digital is our lever for scaling across Banking, Payments, Pension and Funds Management, and for building a more diversified and resilient financial services group.” — Segun Agbaje, Group Chief Executive Officer, GTCO
WHAT’S NEXT
GTCO’s strategy is expected to continue shifting beyond conventional banking as the group expands its payments, pension and funds management businesses.
The group will also have to translate its larger deposit base into productive balance sheet growth while maintaining the improvement recorded in asset quality.
BOTTOM LINE
GTCO ended the first half with N603.03 billion in pre-tax profit, but the headline figure masks stronger underlying movements in income and deposits that were partly absorbed by fair value losses. The group enters the second half with a significantly larger deposit base, stronger asset quality indicators and an increasingly diversified financial services model.
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