Guaranty Trust Holding Company Plc has recorded a sharp rise in interest income since the COVID-19 pandemic, with earnings from interest increasing by 506 per cent between the first quarter of 2020 and Q1 2026.
GTCO’s interest income rose from N77.04bn in Q1 2020 to N467bn in Q1 2026, representing more than a sixfold increase.
The Q1 2026 figure also represents a 17.5 per cent increase from the N397.4bn recorded in the corresponding period of 2025.
The growth was driven by higher interest rates, expanding earning assets and stronger yields on loans, placements and fixed-income investments.
Net interest income also increased significantly, rising from N64.28bn in Q1 2020 to N356.29bn in Q1 2026.
GTCO’s loan interest income increased by 24.8 per cent during the period under review, while interest earned on cash equivalents and placements rose by 30.5 per cent.
The group’s net loan book also grew by 1.3 per cent to N3.17tn.
Interest income refers to the amount earned from lending funds or allowing another entity to use those funds, including returns generated from investments.
A Lagos-based finance analyst, Dibor Akaghane, attributed part of the growth in banks’ interest earnings to the expansion of lending to individuals and businesses.
“Right now, depositors who earn salaries can obtain easy loans sometimes three times their earnings from their banks. It was not so in 2020. Banks have strengthened their due diligence ever since and earned huge revenues from interest income,” Akaghane said.
The Nigerian banking sector has operated in a significantly higher interest-rate environment since the pandemic.
In the first quarter of 2020, the Central Bank of Nigeria maintained the Monetary Policy Rate at 13.5 per cent as the global economy began to feel the impact of COVID-19.
By Q1 2026, the MPR stood at 26.5 per cent after the CBN reduced it by 50 basis points from 27 per cent at its February meeting.
The higher-rate environment has supported stronger interest earnings for banks from lending to individuals and businesses, as well as investments in interest-bearing assets.
Meanwhile, Guaranty Trust Bank has doubled the quarterly international spending limit on its naira-denominated cards from $20,000 to $40,000.
The increase makes GTBank the first among Nigeria’s recapitalised banks to announce the new threshold.
The revised limit allows eligible customers to spend more on international transactions, including flight bookings, hotel reservations, tuition payments, medical expenses and online purchases.
GTBank had previously increased its quarterly international spending limit from $6,000 to $20,000 following improvements in conditions in the foreign exchange market.
The latest increase comes as Nigerian banks continue to adjust their foreign exchange-related services following changes in the country’s currency market.
Despite the strong growth in interest income, GTCO’s overall profit performance was mixed in the first quarter of 2026.
The group reported gross earnings of N571.42bn, while profit before tax rose marginally to N302.89bn.
Profit after tax, however, declined by 15.42 per cent to N218.13bn, largely due to higher tax liabilities.
