Guaranty Trust Holding Company has declared a final dividend of ₦11.76 per share for the financial year ended December 31, 2025, bringing total dividend for the year to ₦12.76 per share even as the group reported a decline in profit.
According to the company’s corporate announcement dated March 31, 2026, the proposed final dividend will be paid to shareholders whose names appear in the register of members as of April 13, 2026, with payment scheduled for April 28, 2026.
The dividend declaration comes on the back of a weaker earnings performance compared to the previous year.
GTCO had earlier reported profit after tax of ₦865.75 billion for 2025, down from ₦1.02 trillion recorded in 2024 as pressure from declining non-interest income, rising operating costs and higher tax expenses weighed on the financial giant’s profit.
Despite the drop in profit, the holding company maintained an aggressive shareholder return strategy, signaling strong confidence in its capital position and cash flow resilience.
The total dividend of ₦12.76 per share implies a substantial payout ratio, reinforcing GTCO’s reputation as one of the highest dividend-paying financial institutions in Nigeria.
A breakdown of the announcement shows that no bonus was proposed for the period, while the register of shareholders will be closed on April 14, 2026 to facilitate dividend payment processing.
Shareholders listed on the Nigerian Exchange (NGX) will receive payments in naira, while those holding Depositary Interests on the London Stock Exchange (LSE) will be paid in U.S. dollars, based on the applicable exchange rate to be determined and communicated by the company.
The decision to sustain a strong dividend payout comes at a time when the bank’s earnings quality has come under pressure. While net interest income improved significantly, supported by higher yields in a rising interest rate environment, non-core income declined sharply, particularly “other income,” which fell from ₦499.07 billion in 2024 to ₦139.95 billion in 2025.
Additionally, operating expenses increased across key lines, including personnel costs and depreciation, while income tax expense rose significantly to ₦365.33 billion, further compressing net profit.
Earnings per share also declined to ₦25.43 from ₦35.44 in the previous year, indicating reduced returns relative to earnings performance.
However, the declared dividend suggests that GTCO is prioritizing shareholder value distribution despite the earnings slowdown.
The divergence between declining profitability and sustained dividend growth highlights a strategic balance between rewarding investors and maintaining financial stability. While the payout underscores strong liquidity and capital buffers, it also raises questions about long-term sustainability if earnings pressures persist.
Investors are expected to closely monitor GTCO’s ability to rebuild non-interest income streams, manage rising costs and optimize its tax position in the coming quarters.
The bank’s capacity to maintain its dividend policy will largely depend on the strength of its core earnings and macroeconomic conditions.
Overall, GTCO’s 2025 dividend announcement reinforces its market positioning as a dividend-focused stock, but also signals the need for improved earnings quality to sustain future payouts.