Guaranty Trust Holding Company Plc (GTCO) recorded a marginal increase in pre-tax profit in the first half of 2026, as higher interest income and lower loan impairment charges were partly offset by rising funding and operating costs.
The financial services group reported N603.03 billion in profit before tax for the six months ended June 30, 2026, up 0.35 per cent from N600.90 billion recorded in the corresponding period of 2025.
Gross earnings rose 3.25 per cent to N1.11 trillion from N1.07 trillion, according to the group’s unaudited financial statements.
Interest income increased 7.51 per cent year-on-year to N873.39 billion from N812.36 billion, driven by higher returns from cash and cash equivalents and investment securities.
However, interest expenses rose faster, increasing 24.24 per cent to N223.79 billion. This limited the growth in net interest income, which rose 2.75 per cent to N649.60 billion.
GTCO’s earnings also benefited from a significant decline in loan impairment charges, which fell 65.94 per cent to N18.72 billion from N54.97 billion.
As a result, net interest income after impairment charges increased 9.29 per cent to N630.88 billion.
The group also recorded a N34.86 billion impairment reversal on other financial assets during the period.
However, weaker non-interest income constrained overall earnings growth. Net fee and commission income fell 8.98 per cent to N123.03 billion, while other income declined to N44.35 billion from N70.92 billion.
Trading gains provided some support, rising to N47.30 billion from N37.92 billion.
Total operating income consequently increased 2.96 per cent to N845.56 billion.
Operating expenses rose 7.31 per cent to N277.39 billion, with depreciation and amortisation increasing 41.82 per cent to N54.31 billion.
Personnel expenses also increased 4.72 per cent to N56.97 billion.
The increase in costs largely offset the benefits from higher interest income and lower impairment charges, resulting in only marginal growth in pre-tax profit.
Profit after tax declined 7.76 per cent to N414.19 billion from N449.01 billion recorded in the first half of 2025.
The decline followed a 24.33 per cent increase in income tax expense, which rose to N188.85 billion from N151.89 billion.
GTCO’s balance sheet expanded during the period, with total assets rising 4.81 per cent to N18.62 trillion from N17.76 trillion at the end of December 2025.
Customer deposits increased 11.32 per cent to N13.97 trillion from N12.55 trillion, providing additional funding for the group’s operations and investments.
However, loans and advances to customers grew only 0.48 per cent to N3.15 trillion from N3.13 trillion at the end of 2025.
Investment securities increased 21.78 per cent to N6.73 trillion, accounting for 36.14 per cent of total assets.
Cash and cash equivalents stood at N4.74 trillion, while total liabilities increased 6.63 per cent to N15.30 trillion.
Total equity declined 2.82 per cent to N3.32 trillion.