Guaranty Trust Holding Company (GTCO) has reported a 40% decline in pre-tax profit to ₦600.9 billion in the first half of 2025, down from ₦1.0 trillion in the same period last year.
The sharp drop reflects the normalization of exceptional foreign exchange trading gains that boosted 2024 results, masking otherwise solid underlying banking performance.
Nigeria’s currency volatility in 2024 created exceptional trading opportunities that proved unsustainable in the current period.
Gross earnings fell 23% to ₦1.07 trillion from ₦1.39 trillion, primarily due to a dramatic collapse in other income streams. The bank’s other income plummeted to ₦70.9 billion from ₦630.3 billion in H1 2024, representing a staggering ₦559 billion decline.
Net interest income surged 29% year-on-year to ₦632.2 billion, driven by aggressive loan growth and higher yields in Nigeria’s elevated interest rate environment. This robust core banking performance demonstrates GTCO’s ability to capitalize on improved lending spreads and expanded customer base.
GTCO’s profit after tax dropped 50% to ₦449.0 billion from ₦905.6 billion, while earnings per share fell dramatically from ₦32.12 to ₦13.59. These headline declines, while substantial, primarily reflect the normalization from extraordinary 2024 gains rather than fundamental business deterioration.
Operating expenses climbed 22% to ₦220.5 billion, with personnel costs reaching ₦54.4 billion and depreciation expenses hitting ₦38.3 billion. Inflationary pressures across Nigeria continue to impact the bank’s cost structure, with other operating expenses totaling ₦165.8 billion.
Loan impairment charges increased to ₦55.0 billion from ₦47.4 billion, signaling rising credit costs as the bank expands its lending portfolio. This 16% increase in provisions suggests growing caution about asset quality in Nigeria’s challenging economic environment.
Total loans to customers grew 21% to ₦3.36 trillion, reflecting GTCO’s aggressive expansion strategy despite emerging credit risks. The bank’s loan growth significantly outpaced the broader Nigerian banking sector average, indicating market share gains.
Total assets expanded 13% to ₦16.69 trillion from ₦14.80 trillion at December 2024, showcasing continued business growth despite profitability challenges. Investment securities increased 21% to ₦4.79 trillion, while cash and bank balances remained flat at ₦4.79 trillion.
Customer deposits surged 19% to ₦11.88 trillion from ₦10.01 trillion, demonstrating strong customer confidence in GTCO’s brand and stability. This robust deposit growth provides the funding base for continued loan expansion and business development.
Holding Company
GTCO’s separate company results show gross earnings of ₦35.9 billion compared to ₦86.3 billion in H1 2024, representing a 58% decline.
Other income of ₦34.2 billion consisted mainly of dividends from GT Bank Limited, the group’s primary banking subsidiary.
The holding company’s pre-tax profit fell 59% to ₦34.8 billion from ₦85.4 billion, with earnings per share dropping to ₦1.01 from ₦2.87.
This performance highlights the holding company’s heavy reliance on subsidiary dividend flows for profitability,