Guaranty Trust Holding Company (GTCO) reported a decline in profit for the financial year ended December 31, 2025, as rising costs, weaker non-interest income and increased tax burden offset gains in core banking operations.
The group posted profit after tax of ₦865.75 billion, down from ₦1.02 trillion recorded in 2024, representing a decline of approximately 14.94 percent. Profit attributable to equity holders also fell to ₦853.55 billion from ₦1.01 trillion in the prior year.
Despite the decline in bottom-line performance, GTCO delivered strong growth in interest-driven income. Interest income rose to ₦1.62 trillion from ₦1.32 trillion, while additional interest income on financial assets stood at ₦31.06 billion, bringing total interest income to over ₦1.65 trillion.
However, this expansion was partially eroded by an increase in interest expense, which climbed to ₦392.58 billion from ₦283.22 billion.
As a result, net interest income grew to ₦1.26 trillion from ₦1.06 trillion, showing resilience in the bank’s core lending and investment activities.
More importantly, loan impairment charges declined sharply to ₦66.42 billion from ₦136.66 billion, indicating improved asset quality and reduced credit risk exposure during the period.
Net interest income after impairment rose to ₦1.19 trillion from ₦921.92 billion, underscoring strong operational performance within the core banking segment.
Non-interest income, however, presented a mixed outlook. Fee and commission income increased to ₦278.51 billion from ₦221.23 billion with net fee income rising to ₦244.39 billion.
In contrast, net trading gains declined to ₦78.74 billion from ₦86.24 billion, suggesting weaker performance in trading activities amid market volatility.
A major drag on earnings came from “other income,” which dropped significantly to ₦139.95 billion from ₦499.07 billion in 2024.
The sharp decline highlights reduced contributions from non-core revenue streams, particularly dividend income and other investment-related earnings that had previously supported profitability.
Operating costs rose across key expense lines, further weighing on margins. Personnel expenses increased to ₦101.05 billion from ₦85.40 billion, while depreciation and amortisation rose sharply to ₦89.52 billion from ₦58.03 billion.
Other operating expenses also rose to ₦284.80 billion from ₦259.60 billion amid inflationary pressures and the expansion of operational scale.
Consequently, profit before tax declined to ₦1.23 trillion from ₦1.27 trillion, despite stronger interest income. The impact was further amplified by a higher tax charge of ₦365.33 billion, compared to ₦248.44 billion in the previous year, leading to the overall decline in net profit.
Earnings per share dropped to ₦25.43 from ₦35.44, indicating reduced returns to shareholders despite the bank’s strong revenue base.
On the positive side, GTCO recorded a rebound in other comprehensive income, which stood at ₦9.83 billion compared to ₦121.48 billion in 2024. While significantly lower year-on-year, the positive figure reflects some stabilization in valuation adjustments and foreign currency translation impacts.
Total comprehensive income for the year declined to ₦875.58 billion from ₦1.14 trillion, aligning with the broader trend of reduced profitability and weaker non-core contributions.
At the company level, standalone performance remained strong, with profit after tax rising to ₦462.61 billion from ₦364.70 billion, largely driven by dividend income from its banking subsidiary, Guaranty Trust Bank Ltd.
Overall, GTCO’s 2025 performance highlights a clear divergence between strong core banking income and weakening ancillary revenue streams. While improved asset quality and higher interest income provide a solid foundation, rising costs, declining non-interest income and increased tax burden continue to pressure earnings.
Investors are expected to monitor the group’s ability to sustain interest income growth while rebuilding non-core revenue streams and managing cost efficiency in an increasingly challenging macroeconomic environment.