By Seun Ibiyemi
Guaranty Trust Holding Company Plc (GTCO) recorded a significant rise in interest income in the first quarter of 2026, as higher interest rates and growth in its earning assets continued to strengthen the group’s interest-driven revenue.
GTCO’s interest income rose to N467 billion in Q1 2026, from N77.04 billion recorded in the corresponding quarter of 2020, representing a 506 per cent increase over the six-year period.
The latest figure also represents a 17.5 per cent increase from the N397.4 billion recorded in Q1 2025.
The growth translated into a significant improvement in net interest income, which rose from N64.28 billion in Q1 2020 to N356.29 billion in Q1 2026.
The performance was supported by higher returns from the group’s lending and investment activities. Interest income from loans increased by 24.8 per cent, while interest earned from cash equivalents and placements rose by 30.5 per cent.
GTCO’s net loan book also increased by 1.3 per cent to N3.17 trillion during the period.
A Lagos-based finance analyst, Dibor Akaghane, attributed the growth partly to improved lending practices and increased access to credit by bank customers.
“Right now, depositors who earn salaries can obtain easy loans sometimes three times their earnings from their banks. It was not so in 2020.
Banks have strengthened their due diligence ever since and earned huge revenues from interest income,” Akaghane said.
Higher interest rates support earnings
The increase in GTCO’s interest income has occurred against the backdrop of a significantly higher interest-rate environment in Nigeria.
The Central Bank of Nigeria’s Monetary Policy Rate stood at 13.5 per cent in Q1 2020, compared with 26.5 per cent in Q1 2026 after the apex bank cut the rate from 27 per cent by 50 basis points in February.
Higher rates have allowed banks to generate stronger returns from loans, placements and fixed-income investments.
Meanwhile, GTCO reported N571.42 billion in gross earnings during Q1 2026, while profit before tax increased marginally to N302.89 billion.
However, profit after tax declined by 15.42 per cent to N218.13 billion, largely due to increased tax liabilities.
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In a related development, GTBank has doubled the quarterly international spending limit on its naira-denominated cards from $20,000 to $40,000.
The revised limit allows eligible customers to spend up to $40,000 per quarter on international transactions, including flight bookings, hotel reservations, tuition, medical expenses and online purchases.
The bank had previously raised the limit from $6,000 to $20,000 following improvements in foreign exchange market conditions.
The latest adjustment comes as Nigerian banks continue to respond to changing conditions in the foreign exchange market and growing demand for international transactions.
