GTCO nine-month profit falls 2.3% to ₦879.9bn as funding costs rise
- GTCO's pre-tax profit for the nine months to September 2026 fell 2.3% to ₦879.9 billion from ₦900.8 billion a year earlier.
- Interest expense rose 27.7% to ₦356 billion, while a ₦87.9 billion fair value loss and higher tax also weighed on earnings.
- Deposits grew to about ₦13.98 trillion, but the bank's loan book shrank 4.1% to ₦3 trillion.
Guaranty Trust Holding Company (GTCO) made a pre-tax profit of ₦879.9 billion in the nine months to September 2026, down 2.3% from ₦900.8 billion in the same period last year.
The results, filed with the Nigerian Exchange (NGX) and the London Stock Exchange, show the bank earned more overall but kept less of it. Gross earnings rose 3.3% to ₦1.63 trillion, yet profit after tax fell 12.2% to ₦614.6 billion from ₦699.6 billion.
Earnings per share dropped to ₦16.58 from ₦20.71.
Why the profit slipped
The biggest drag was the cost of funding the business. Interest expense jumped 27.7% to ₦356 billion from ₦278.7 billion, outpacing a 5% rise in interest income to ₦1.29 trillion. That left net interest income slightly lower at ₦935.9 billion.
GTCO also booked a ₦87.9 billion fair value loss in the period, according to the company's statement.
Tax took a bigger bite. Income tax rose about 31.9% to ₦265.3 billion, pushing the effective tax rate to about 30.2% from 22.3%. GTCO linked the sharper fall in profit after tax to changes in Companies Income Tax rules affecting capital allowance reliefs.
There was some relief: loan impairment charges fell 58.4% to ₦29 billion from ₦69.8 billion, and the cost of risk improved to 0.9% from 2.2%.
Operating costs still climbed. Depreciation and amortisation rose 41% to ₦82.5 billion, and other operating expenses were up 6.5% to ₦228.8 billion.
What it means for customers and investors
The bank is holding more of Nigerians' money. Deposits grew 8.6% to ₦13.98 trillion from ₦12.87 trillion in December 2025. Total assets rose 3.5% to ₦18.37 trillion.
But GTCO lent out less. Its net loan book fell 4.1% to ₦3 trillion, while holdings of investment securities rose to about ₦5.94 trillion. The bank described the slower lending as a disciplined approach to risk.
Its capital position remains strong, with a Capital Adequacy Ratio of 34.2%, and bad loans (IFRS 9 Stage 3) fell to 4% at group level from 5%.
Group Chief Executive Officer Segun Agbaje said the results reflected "the strength of a franchise built on scale, efficiency and discipline." He said the bank would keep optimising risk-free returns and take advantage of arbitrage opportunities as markets change.
GTCO shares closed at ₦123.20 on Tuesday, down 1.52%. They are still up about 35.8% since the start of the year.
What happens next: Investors will watch the final quarter for three things: whether funding costs ease, whether the higher tax rate holds, and whether the bank turns its growing deposits into more lending.
