GTCO H1 profit rises to ₦603bn as asset quality improves

Stanley Ihedigbo

Guaranty Trust Holding Company Plc (GTCO) has reported a profit before tax (PBT) of ₦603.03 billion for the half year ended June 30, 2026, while declaring an interim dividend of ₦1 per share to shareholders.

The Group disclosed this in its audited consolidated and separate financial statements released to the Nigerian Exchange Group (NGX) and London Stock Exchange (LSE) on Monday.

GTCO said its performance was driven by strong growth in interest and trading income, which increased year-on-year by 7.5 per cent and 24.7 per cent, respectively.

However, the Group said a ₦46.2 billion fair value loss recognised during the first half moderated the growth in profit before tax to 0.4 per cent year-on-year.

The financial services group also reported growth across its asset lines, saying the performance reinforced a balance sheet that remained well structured, liquid and diversified.

GTCO’s total assets rose to ₦18.6 trillion, while shareholders’ funds closed at ₦3.3 trillion.
Its Capital Adequacy Ratio (CAR) remained strong at 34.9 per cent at the Group level and 29.2 per cent at the Bank level, reflecting the Group’s capital position.

Asset quality also improved during the period, with IFRS 9 Stage 3 loans closing at 3.5 per cent for the Bank and 4.6 per cent for the Group, compared with 3.4 per cent and 5.0 per cent respectively at the end of 2025.

Similarly, the Group’s Cost of Risk improved significantly to 0.6 per cent, compared with 2.2 per cent during the corresponding period.

GTCO’s net loan book increased marginally by 0.5 per cent, from ₦3.13 trillion at the end of December 2025 to ₦3.15 trillion in June 2026.

Deposits, however, recorded stronger growth, rising by 10.3 per cent from ₦12.87 trillion to ₦14.19 trillion during the same period.

Commenting on the results, Group Chief Executive Officer of GTCO Plc, Segun Agbaje, said the performance demonstrated the resilience of the Group’s franchise and the strength of its balance sheet.

He said the business had evolved beyond traditional banking, with its Payments, Pension and Funds Management businesses contributing to its diversification.

According to Agbaje, “Fair value movements weighed on reported earnings, but the core business held firm. Interest and trading income grew, deposits strengthened, and asset quality improved at the Group level.”

He added that the Group’s priority was to execute with discipline and pursue responsible growth, noting that digital technology would remain a major lever for scaling its Banking, Payments, Pension and Funds Management businesses.

GTCO said it continued to record strong financial ratios, including a pre-tax return on equity of 35.9 per cent, pre-tax return on assets of 6.6 per cent, capital adequacy ratio of 34.9 per cent and cost-to-income ratio of 31.5 per cent.

The Group operates across Africa and the United Kingdom, providing banking and non-banking financial services, including payments, funds management and pension fund administration.