Guaranty Trust Holding Company Plc has reported a modest 0.88 per cent year-on-year increase in profit before tax to N302.89bn for the first quarter ended March 31, 2026, according to its unaudited group financial results.
However, profit after tax declined by 15.42 per cent to N218.13bn, largely due to higher tax liabilities during the period.
The group’s performance was underpinned by strong growth in both interest and non-interest income, alongside significantly lower loan impairments.
Interest income rose by 17.52 per cent year-on-year to N466.99bn, while interest expenses climbed faster by 39.75 per cent to N110.70bn, driven mainly by higher costs on customer deposits. Despite this, net interest income remained solid at N356.29bn, representing an 11.98 per cent increase.
Interest income from loans and advances continued to be a key earnings driver, generating N183bn from a relatively lean loan book of about N3.2tn. Investment securities also contributed significantly, with N187bn in income, accounting for roughly 40 per cent of total interest income.
Loan impairment charges dropped sharply by 41.05 per cent to N7.95bn, boosting net interest income after impairment to N348.34bn, up 14.33 per cent from the previous year.
On the non-interest side, the group recorded N69.80bn in net fee and commission income, supported by N22bn from e-business services and N16.7bn from credit-related fees. It also generated over N20bn in net foreign exchange trading gains, further strengthening earnings.
Among its subsidiaries, Habari Pay Ltd emerged as the most profitable non-banking unit, posting a pre-tax profit of N3.75bn, more than double the N1.66bn recorded in Q1 2025.
Operating expenses rose by 14 per cent to N139bn, reflecting increases in staff costs, depreciation, and other operational outlays.
Earnings per share declined by 24.78 per cent to N5.89, mirroring the drop in net profit.
The group’s balance sheet remained robust, with total assets increasing by 5.54 per cent to N18.75tn. Customer deposits grew by 5.27 per cent to N13.21tn, following the mobilisation of about N661bn in new deposits during the quarter, and now account for over 70 per cent of total assets.
Loans and advances to customers rose slightly by 1.25 per cent to N3.17tn, while shareholders’ funds increased by 6.28 per cent to N3.63tn.
Despite higher funding costs, GTCO’s ability to sustain strong core income, maintain low credit losses, and grow deposits highlights its resilience in a challenging operating environment.
