GTCO’s Nine-Month Profit Before Tax Falls to N879.9bn

By AAdebola Muili

Guaranty Trust Holding Company Plc (GTCO) has recorded a profit before tax of N879.9 billion for the nine months ended September 30, 2026, representing a 2.3 per cent decline from N900.8 billion recorded in the corresponding period of 2025, despite continued growth in its core earnings.

The financial services group attributed the performance to sustained growth across its major income streams, although a N87.9 billion fair value loss during the period weighed on its overall results. Its profit after tax also declined to N614.6 billion from N699.6 billion in the corresponding period of 2025, partly reflecting changes in Companies Income Tax regulations that affected capital allowance reliefs.

The figures were contained in the group’s unaudited consolidated and separate financial statements released to the Nigerian Exchange Group and the London Stock Exchange on Tuesday.

According to the results, interest income grew by 5.0 per cent year-on-year, while fees and commission income and trading income increased by 1.4 per cent and 3.1 per cent respectively, supporting the group’s earnings performance despite the decline in reported profits.

GTCO’s total assets rose by 3.5 per cent to N18.37 trillion as of September 30, 2026, from N17.76 trillion at the end of December 2025, while shareholders’ funds closed at N3.5 trillion.

The group also recorded an 8.6 per cent increase in deposit liabilities, which rose from N12.87 trillion in December 2025 to N13.98 trillion at the end of September 2026. The growth reflected the continued strength of its deposit base.

However, its net loan book declined by 4.1 per cent to N3 trillion, a development the group linked to its disciplined approach to lending and risk asset creation.

On asset quality, the group recorded an improvement in its International Financial Reporting Standard (IFRS 9) Stage 3 loans ratio, which fell to 4.0 per cent from 5.0 per cent at the end of 2025. At the banking subsidiary level, the ratio remained unchanged at 3.4 per cent.

The cost of risk also declined to 0.9 per cent from 2.2 per cent over the same period, while coverage for credit-impaired loans improved to 130.7 per cent from 106.9 per cent, indicating stronger coverage against potential credit losses.

GTCO maintained a capital adequacy ratio of 34.2 per cent at group level, while its banking subsidiary recorded 33.9 per cent, underscoring its capital position during the reporting period.

Commenting on the results, the Group Chief Executive Officer of GTCO, Mr Segun Agbaje, said the performance demonstrated the strength of a business built on scale, efficiency and financial discipline.

Agbaje said the group sustained growth in core earnings and expanded its deposit base despite the challenging operating environment and significant fair value losses recorded during the period.

“Our performance in the Q3 reflects the strength of a franchise built on scale, efficiency and discipline. Despite a challenging operating environment and significant fair value losses in the period, our core earnings continued to grow, 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,” he said.

He added that the group would continue to pursue opportunities to optimise returns while maintaining discipline in its risk asset creation.

“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,” Agbaje said.

He further stated that GTCO would continue to develop its platforms and adapt to emerging technologies to meet changing customer needs while focusing on sustainable value creation and improved returns for shareholders.

The group’s net core earnings grew by 4.4 per cent to N1.505 trillion, while funded income accounted for 77.8 per cent of gross earnings, reflecting the contribution of its core business activities to overall performance.

GTCO also 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, highlighting its continued emphasis on operational efficiency.

The financial services group operates across Africa and the United Kingdom, with business interests spanning banking, payments, pension fund administration and funds management.