GTCO Posts ₦303bn Q1 Profit As Interest Income Growth Offsets Rising Costs

April 29, (THEWILL) — Guaranty Trust Holding Company Plc (GTCO) has reported a profit before tax of ₦302.9 billion for the first quarter ended March 31, 2026, reflecting modest growth supported by strong interest income and resilient core operations.

The group’s unaudited results show profit before tax rose slightly by 0.88 percent year-on-year from ₦300 billion in Q1 2025. However, profit after tax declined by 15.42 percent to ₦218.1 billion, largely due to higher tax expenses.

Interest income remained the primary earnings driver, climbing 17.52 percent to ₦467 billion. This was underpinned by returns from loans and investment securities, which contributed ₦183 billion and ₦187 billion, respectively. Income from securities alone accounted for about 40 percent of total interest earnings.

Despite a sharp 39.75 percent rise in interest expenses to ₦110.7 billion, driven mainly by the cost of customer deposits, net interest income still grew by nearly 12 percent to ₦356.3 billion. GTCO’s asset quality also improved significantly, with loan impairment charges dropping by 41.05 percent to ₦7.95 billion. This helped lift net interest income after impairment by 14.33 percent to ₦348.3 billion.

Non-interest income remained supportive, with the group generating ₦80 billion from fees and commissions, boosted by digital banking and credit-related activities. It also recorded over ₦20 billion in foreign exchange trading gains. Operating expenses rose by 14 percent to ₦139 billion, reflecting higher staff and administrative costs. On the balance sheet, total assets increased by 5.54 percent to ₦18.75 trillion, driven by a ₦661 billion increase in customer deposits, which stood at ₦13.21 trillion and accounted for over 70 percent of total assets.

Habari Pay Ltd led the non-banking subsidiaries, posting a pre-tax profit of ₦3.75 billion. GTCO’s shares reacted positively, rising 2 percent to ₦130 on April 28. The stock has gained 24 percent month-on-month and over 53 percent year-to-date.

Ogochukwu Onwaeze, THEWILL

Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.