By Kehinde Ibrahim
GUARANTY Trust Holding Company Plc (GTCO) has reported a profit before tax of N603.03 billion for the half-year ended June 30, 2026, while declaring an interim dividend of N1 per share to shareholders.
The financial performance was disclosed in the company’s audited consolidated and separate financial statements for the six-month period, submitted to the Nigerian Exchange Group (NGX) and the London Stock Exchange (LSE).
GTCO’s profit before tax was supported by growth in its core income streams, particularly interest income and trading income, which increased by 7.5 per cent and 24.7 per cent year-on-year, respectively.
However, the group said its earnings performance was affected by a N46.2 billion fair value loss recognised during the period. The loss moderated the overall improvement in profitability, resulting in a 0.4 per cent year-on-year increase in profit before tax.
Despite the impact of the fair value loss, GTCO continued to expand its balance sheet across its banking operations and other financial services businesses, including payments, pension and funds management.
The group’s total assets rose to N18.6 trillion at the end of June 2026, while shareholders’ funds stood at N3.3 trillion. The company said the growth reflected the continued expansion of its operations across the jurisdictions where it maintains banking franchises, as well as its growing non-banking financial services businesses.
GTCO also maintained a strong capital position, with the Group’s Capital Adequacy Ratio (CAR) standing at 34.9 per cent, compared with 29.2 per cent at the bank level.
Asset quality also improved at the group level during the period. IFRS 9 Stage 3 loans stood at 3.5 per cent at the bank level and 4.6 per cent at the group level in the first half of 2026, compared with 3.4 per cent and 5.0 per cent, respectively, at the end of 2025.
The group’s cost of risk also declined significantly to 0.6 per cent from 2.2 per cent recorded at the end of the 2025 financial year, indicating an improvement in credit risk management during the period.
GTCO’s net loan book increased marginally by 0.5 per cent, from N3.13 trillion at the end of December 2025 to N3.15 trillion by June 2026. Deposit liabilities, however, recorded stronger growth, rising by 10.3 per cent from N12.87 trillion to N14.19 trillion over the same period.
Commenting on the results, the Group Chief Executive Officer of GTCO, Segun Agbaje, said the performance demonstrated the resilience of the group’s franchise and the strength of its balance sheet.
He said the group’s expanding businesses beyond traditional banking were also contributing to its growing financial services platform.
“Our half-year results speak to the strength of what we have built: a resilient franchise, a strong balance sheet and a business that no longer depends on banking alone,” Agbaje said.
He noted that while fair value movements affected reported earnings during the period, the underlying business continued to record growth, with improvements in interest and trading income, deposits and asset quality.
“Fair value movements weighed on reported earnings, but the core business held firm. Interest and trading income grew, deposits strengthened, and asset quality improved at Group level,” he said.
According to Agbaje, the group’s immediate focus would be on disciplined execution and responsible growth across its various business lines.
“The priority now is to execute with discipline and grow responsibly. Digital is our lever for scaling across Banking, Payments, Pension and Funds Management, and for building a more diversified and resilient financial services group,” he added.
The group’s key performance indicators remained strong during the period. Pre-tax return on equity stood at 35.9 per cent, while pre-tax return on assets was 6.6 per cent.
The cost-to-income ratio stood at 31.5 per cent, reflecting the group’s continued focus on operational efficiency, while the 34.9 per cent group-level capital adequacy ratio provided a substantial capital buffer to support its operations and growth strategy.
The declaration of the N1 interim dividend is subject to the applicable regulatory and statutory requirements, with the payment representing a return to shareholders from the group’s first-half performance.
The latest results come as GTCO continues to broaden its business model beyond conventional commercial banking, with investments in payments, pension and funds management forming part of its strategy to build an integrated financial services group.
The performance of the group’s deposit franchise, together with the expansion of its asset base and improvement in credit quality, underscores the role of its banking operations in supporting the broader group while its non-banking businesses continue to develop.
