Guaranty Trust Holding Company Plc (GTCO), one of Nigeria’s leading financial services groups, has reported a mixed performance in its unaudited nine-month financial results for the period ended September 30, 2025. While the Group demonstrated resilience in its core lending and funded income streams, earnings were significantly pressured by steep declines in non-interest income and rising operating costs.
According to the financial statement released on Monday, October 28, 2025, GTCO’s earnings per share (EPS) fell sharply by 46.1% year-on-year (y/y) to ₦20.71, compared to ₦38.41 recorded in the corresponding period of 2024. The decline was attributed mainly to a 56.5% contraction in non-interest income, which overshadowed the company’s strong performance in interest-earning activities.
Interest Income: Sustaining Growth Through Core Operations
Interest income rose by 25.6% y/y to ₦1.23 trillion, driven by improved returns from investment securities (+39.9%), loans to customers (+14.9%), and cash and bank balances (+15.1%). The growth was underpinned by a 14.2% year-to-date (YTD) increase in earning assets, reflecting the Group’s strategic push to expand its loan book and optimize investment opportunities.
Specifically, investment securities grew 18.4% YTD, customer loans increased 16.5%, while cash balances improved by 9.1%, collectively strengthening GTCO’s income-generating capacity in a volatile economic environment.
Despite strong asset growth, the Group faced mounting funding costs, as interest expenses jumped 40.2% y/y to ₦278.73 billion. This was driven by higher interest payments on customer deposits (+41.5%), financial institutions (+4.0%), and borrowings (+43.3%). Nonetheless, net interest income climbed 21.8% y/y to ₦952.14 billion, signaling effective asset repricing and balance sheet management.
After accounting for loan impairments, net interest income excluding loan loss expenses (LLE) rose 22.9% y/y to ₦882.35 billion, supported by GTCO’s conservative credit risk management, as loan impairment charges increased modestly by 9.8% y/y.
Non-Interest Income Contracts Sharply on Fair Value Losses
The major drag on GTCO’s overall performance came from non-interest income, which plunged 56.5% y/y to ₦346.28 billion. Although the Group recorded healthy gains in fee and commission income (+15.6%), foreign exchange trading (+18.1%), forward transactions (+52.4%), and investment securities income (+106.6%), these were insufficient to offset a fair value loss of ₦49.17 billion, a stark contrast to the ₦523.22 billion gain posted in the same period of 2024.
Consequently, operating income declined 18.9% y/y to ₦1.23 trillion, reflecting the impact of reduced market volatility and the relative stability of the naira, which limited speculative and trading gains that had previously bolstered earnings.
Cost Pressures and Tax Burden Weigh on Profitability
GTCO’s cost base expanded during the period, with operating expenses rising 11.3% y/y to ₦327.83 billion. The increase was driven by higher personnel costs (+28.1%), AMCON levy (+38.7%), depreciation (+31.4%), and occupancy expenses (+35.9%). As a result, the Group’s cost-to-income ratio deteriorated to 21.0%, up from 15.3% in the same period last year.
The combined effect of shrinking non-interest income and elevated costs led to a 26.1% y/y decline in pre-tax profit, which closed at ₦900.81 billion. Additionally, a 49.6% surge in effective taxation further compressed bottom-line profitability, resulting in a 35.5% drop in profit after tax (PAT) to ₦699.64 billion.
Analysts’ Take: Resilient Fundamentals Amid Macroeconomic Headwinds
Market analysts note that GTCO’s nine-month 2025 performance reflects the broader realities facing Nigeria’s banking sector, where stable foreign exchange rates, high interest environments, and regulatory pressures are reshaping revenue dynamics.
According to investment analysts at Cordros Research, “GTCO’s performance underscores the resilience of its core operations and prudent credit management. However, with fair value losses and cost pressures persisting, earnings growth will likely remain subdued in the final quarter of the year.”
Despite these challenges, GTCO remains well-positioned to capitalize on long-term opportunities in digital banking, payments, and financial technology through its diversified business model spanning banking, asset management, and insurance.
Outlook: Focus on Cost Efficiency and Sustainable Growth
Looking ahead, the Group is expected to prioritize cost optimization, enhanced operational efficiency, and balance sheet resilience. With interest income showing steady growth, GTCO’s management is likely to leverage its expanding customer base and digital channels to sustain profitability amid Nigeria’s evolving macroeconomic landscape.
Guaranty Trust Holding Company Plc (GTCO) posts ₦699.6 billion profit after tax in 9M 2025 despite a 46% drop in EPS, as strong lending growth offsets sharp declines in non-interest income and rising operational costs.
