Nine Months 2026: GTCO declares 12.2% drop in profit to N614.57bn 

Guaranty Trust Holding Company Plc (GTCO) has published its unaudited nine months ended September 30, 2026 financials reporting a 12.2per cent decline in profit after tax (PAT) to N614.57 billion from N699.64 billion nine months ended September 30, 2025.  

The decline reflected higher interest, operating and tax expenses, alongside lower non interest income.

Interest income grew five per cent to N1.29 trillion from N1.23 trillion in nine months of 2025, supported by a 62.2per cent increase in income from cash and balances with banks, which more than offset declines in interest income from loans and advances to customers (-3.6 per cent) and investment securities (-7.8per cent ). 

The decline in investment securities income reflected lower yields in the fixed income market. Interest income from securities held at amortised cost and FVOCI declined by 26per cent and 3.1per centrespectively, despite increases of 16.1per cent and 2.6per cent in their respective holdings. 

These declines more than offset the 83.9per cent increase in income from FVTPL securities, which rose alongside an increase in the underlying portfolio to N998.74 billion (9M-25: N14.97 billion).

Meanwhile, interest expense increased by 27.7per cent to N356.00 billion, driven primarily by a 42.5per cent increase in interest on customer deposits to N25.25 billion and a 16.4per cent rise in interest on deposits from financial institutions. Notably, interest expense on deposits from financial institutions surged by 550.1per cent q/q. 

These increases were partly moderated by a 91.4per cent decline in interest expense on borrowings. Consequently, cost of fund rose to 3.5per cent in 9M-26 (2025FY: 3.4per cent).

Net interest income declined by 1.7per cent to N35.88 billion. However, the 58.4per cent decline in impairment charges provided some relief, supporting a 2.8per cent increase in net interest income after impairment charges (ex-LLE) to N906.86 billion. Accordingly, net interest margin declined to 11.4per cent (2025FY: 12.3per cent).

Further down, non interest income declined by 2.7per cent to N336.84 billion, as an 88.8per cent decline in foreign exchange revaluation gains and a 0.4per cent decrease in net fees and commission income outweighed increases in trading gains on investment securities (+3.4per cent) and FX trading gains (+3.1per cent). Consequently, operating income grew by 1.1per cent to N1.28 trillion.

Meanwhile, operating expenses expanded by 9.5per cent to N399.81 billion, reflecting higher AMCON levies (+9.8per cent), deposit insurance premiums (+10.1per cent) and depreciation and amortisation (+41.0per cent y/y), while personnel expenses declined by 3.4per cent. 

The increase in operating expenses outpaced operating income growth, resulting in a deterioration in the cost-to-income ratio to 31.2per cent (9M-25: 28.8per cent).

Overall, profit before tax declined by 2.3per cent to N879.90 billion, while PAT declined by 12.2per cent to N614.57 billion (9M-25: N699.64 billion), reflecting the impact of higher income tax expense, which increased by 31.9per cent to N265.33 billion.

Cordros Research in a report said, “GTCO’s nine months of  26 performance reflected pressure on core earnings, alongside a decline in non-interest income. Looking ahead, we expect a gradual expansion of the bank’s balance sheet, particularly its loan book, to provide moderate support for interest income, complemented by continued growth in its investment securities portfolio. 

“However, we expect the moderation in asset yields to keep net interest margin under pressure. Meanwhile, net fee and commission income should provide some support to earnings as loan growth gains traction, driving an increase in related fee income. Our estimates are under review.”