Onome Amuge
Guaranty Trust Holding Company (GTCO) is leaning on its regional diversification strategy to soften the blow from earnings slide in its core Nigerian market, where profit before tax plunged by more than half in the first half of 2025.
The lender’s latest financials show that Nigeria, which accounts for the bulk of the Group’s operations, recorded a 51.5 percent decline in pre-tax profit to N411.8 billion, down from N850.6 billion in the same period of 2024. The weak performance was linked to a slowdown in revenues and the evaporation of foreign exchange–related exceptional gains that had previously buoyed results.
GTCO East Africa and Europe also posted weaker outcomes. Profit before tax in GTCO East Africa fell to N9.5 billion from N11.49 billion a year earlier, while the Europe business booked a marginal drop to N10.2 billion compared to N11.08 billion in H1 2024.
In contrast, the Rest of West Africa region, spanning Ghana, Gambia, Sierra Leone, Liberia and Côte d’Ivoire, emerged as the bright spot in the GTCO portfolio, delivering a 30 per cent jump in profit to N169.35 billion. The region also outperformed in revenue generation, highlighting its growing importance in the Group’s geographic mix.
Overall, GTCO recorded a profit after tax (PAT) tumbled 50.41 percent to N449.01 billion from N905.56 billion in June 2024, underscoring the extent of the hit from FX market distortions and weakening earnings momentum in its biggest market.
Analysts say the results presented by GTCO highlight both the risks of concentration in Nigeria’s volatile operating environment and the strategic relevance of its pan-African footprint. While the West African subsidiaries provided some cushion, the profit contraction across three regions points to the urgency of diversifying revenue lines and strengthening non-interest income sources.
