Onome Amuge
Guaranty Trust Holding Company Plc (GTCO) has maintained robust balance sheet growth and resilient margins despite a sharp rise in funding costs and a moderation in foreign exchange gains, underlining the challenges facing Nigerian lenders as the central bank tightens monetary conditions to contain inflation and stabilise the naira.
The group, one of Nigeria’s largest financial services conglomerates, said in its unaudited results for the nine months to September 30, 2025, that net interest income rose 22 per cent year-on-year to N952.1 billion, up from N781.5 billion, buoyed by higher yields on loans and investment securities. Total interest income climbed to N998.6 billion, reflecting improved asset pricing and sustained expansion in loans and advances to customers.
Interest income from customer loans rose to N450.8 billion, while investment securities contributed N547.8 billion, highlighting the group’s strategic asset mix that continues to leverage Nigeria’s elevated yield environment.
However, the benefits of higher yields were partially eroded by a 40 per cent jump in interest expenses to N278.7 billion, as deposit costs rose sharply in line with tighter liquidity conditions and the Central Bank of Nigeria’s (CBN) aggressive monetary stance. The bank’s ability to maintain a strong net interest margin despite this pressure underscores what analysts describe as GTCO’s “pricing discipline and liability management strength.”
Net interest income settled at N882.3 billion following modestly higher loan impairment charges of N69.8 billion, compared with N63.6 billion in the prior period
Non-interest revenue remained a key earnings driver, up 17 per cent to N210.5 billion, supported by expanding digital channels and increased transaction volumes across GTCO’s subsidiaries in Ghana, Kenya, and Côte d’Ivoire. Trading income grew 28 per cent to N77.2 billion, aided by fixed-income market activities, though “other income” plunged to ₦85.8 billion from N577.4 billion in the prior year.
That normalisation, combined with a rise in operating expenses, weighed on overall profitability. Operating costs rose 24 per cent to N365 billion, driven by personnel, technology, and administrative outlays. Profit before tax fell 26 per cent to N900.8 billion, while after-tax profit declined 36 per cent to N699.6 billion, from N1.09 trillion in the same period last year. Earnings per share dipped to N20.71 from N38.41.
Still, GTCO’s fundamentals remained resilient. Total assets expanded 13 per cent to N16.66 trillion as of September 2025, compared with N14.80 trillion in December 2024, supported by loan book growth and increased investments in government securities. Customer deposits jumped 18 per cent to N11.85 trillion, reflecting continued confidence in the franchise. Loans and advances to customers rose to N3.24 trillion, from N2.79 trillion, indicating cautious but steady credit expansion.
On the liabilities side, total obligations reached N13.29 trillion, while shareholders’ funds climbed to N3.37 trillion from N2.71 trillion, aided by retained earnings and new equity capital of N161.3 billion.
GTCO’s liquidity remained strong, with cash and cash equivalents at N4.50 trillion, slightly up from N4.29 trillion a year earlier. The group generated N1.40 trillion in operating cash flow, driven by solid earnings and deposit mobilisation, while financing outflows of N226.4 billion reflected dividend payments and share buybacks.
