GTCO Reports Interest Income of N458bn Despite Rising Costs

Guaranty Trust Holding Company (GTCO) reported a rise in interest income to N458.5 billion for the first quarter of 2026, up from N386 billion last year. The growth was driven by increased interest from loans and advances to customers, which rose by around 25%.

However, the banking group saw a 15.4% drop in net profit for the period, as higher costs took a toll on earnings. A significant factor contributing to the decline was a twofold increase in income tax expenses, which surged to N84.8 billion.

GTCO’s net interest income, which measures the difference between the revenue earned on interest-bearing assets and the costs paid to depositors, climbed 12% to N356.3 billion.

The company set aside N7.9 billion to cover impaired loans, a 41% decrease compared to the previous year. Net fee and commission income rose by 4% to N69.8 billion, bolstered by fees from e-business, credit-related services, and account maintenance.

HabariPay, GTCO’s fintech arm, delivered a net profit of N3.7 billion, while the asset management and pension fund divisions earned N3.4 billion and N480.7 million, respectively. However, GT Bank Tanzania posted a net loss of N5 million, marking the only subsidiary to record a loss.

The group faced an additional N1.6 billion in other losses, largely due to a fair value loss of N40.4 billion on financial instruments. This compares to the N30.7 billion in other income reported last year.

Despite these challenges, GTCO’s profit before tax grew slightly to N302.9 billion, up from N300.3 billion, while after-tax profit fell to N218.1 billion from N257.9 billion.

Foreign currency translation losses for foreign operations stood at –N42.6 billion, contributing to a 32.5% decline in other comprehensive income to N180.6 billion.

In July 2025, GTCO successfully completed a cross-border listing, allowing its shares to be quoted on the London Stock Exchange, further expanding its global presence.