WED OCT 29 2025-theGBJournal| Banking big name Guaranty Trust Holding Company Plc (GTCO) on Tuesday reported a 35.5% y/y steep decline in profit after tax to N699.64 billion in 9M-25 amid cost pressures and fair value losses.
Pre-tax profit equally fell 26.1% y/y to N900.81 billion, while higher effective taxation (+49.6% y/y) further compressed bottom-line earnings.
GTCO’s operating expenses rose by 11.3% y/y to N327.83 billion, driven by higher personnel costs (+28.1% y/y), AMCON levy (+38.7% y/y), depreciation (+31.4% y/y), and occupancy costs (+35.9% y/y).
As a result, the cost-to-income ratio deteriorated to 21.0% (9M-24: 15.3%).
Interest income advanced by 25.6% y/y to N1.23 trillion, supported by higher income on investment securities (+39.9% y/y), loans to customers (+14.9% y/y) and cash and bank balances (+15.1% y/y).
This performance was aided by the 14.2% YTD growth in the HoldCo’s earning assets, comprising investment securities (+18.4% YTD), customer loans (+16.5% YTD), and cash balances (+9.1% YTD).
Interest expense, however, surged by 40.2% y/y to N278.73 billion, driven by higher funding costs from customers (+41.5% y/y), financial institutions (+4.0% y/y) and borrowings (+43.3% y/y).
Despite the cost pressures, net interest income grew 21.8% y/y to N952.14 billion, reflecting effective asset repricing. Adjusting for impairments, net interest income ex-LLE rose 22.9% y/y to N882.35 billion, supported by the group’s disciplined credit risk management (loan impairment charges: +9.8% y/y).
Further down, we saw GTCO’s non-interest income contract by 56.5% y/y to N346.28 billion in 9M-25.
While fee and commission income (+15.6% y/y), gains on FX trading (+18.1% y/y), forward transactions (+52.4% y/y), and investment securities (+106.6% y/y) improved, they were insufficient to offset the fair value loss of N49.17 billion recorded in the period (9M-24: N523.22 billion gain). Consequently, operating income fell 18.9% y/y to N1.23 trillion.
GTCO earnings per share (EPS) came in 46.1% y/y lower to N20.71 (9M-24: N38.41).
The performance reflected a steep contraction in non-interest income (-56.5% y/y), which offset growth in interest income (+25.6% y/y).
X-@theGBJournal|Facebook-the Government and Business Journal|email:gbj@govbusinessjournal.com|govandbusinessj@gmail.com
