By Seun Ibiyemi
Guaranty Trust Holding Company Plc (GTCO) recorded N603.03 billion profit before tax (PBT) in the first half of 2026, representing a marginal 0.35 per cent increase from the N600.90 billion reported in the corresponding period of 2025.
The group’s unaudited financial statements showed that gross earnings increased 3.25 per cent to N1.11 trillion from N1.07 trillion, although earnings per share declined by 17.73 per cent to N11.18 from N13.59.
The Board of GTCO also proposed an interim dividend of N1.00 per ordinary share to shareholders on the register as of the applicable closure date.
GTCO’s topline remained positive in the six months ended June 2026, although growth was relatively modest.
Interest income increased 7.51 per cent to N873.39 billion from N812.36 billion, driven by income from cash and cash equivalents and investment securities.
Interest income from loans and advances to customers remained broadly flat at N297.77 billion, compared with N297.54 billion in the prior-year period.
Interest income from cash and cash equivalents rose to N204.72 billion from N131.95 billion, while income from financial assets measured at fair value through other comprehensive income increased to N244.84 billion from N234.23 billion.
However, income from investment securities measured at amortised cost declined to N98.69 billion from N126.82 billion.
Despite the increase in interest income, net interest income grew by only 2.75 per cent to N649.60 billion, following a 24.24 per cent rise in interest expense to N223.79 billion.
The strongest boost to profitability came from lower credit impairment charges.
Loan impairment charges fell sharply by 65.94 per cent to N18.72 billion from N54.97 billion, lifting net interest income after impairment charges by 9.29 per cent to N630.88 billion.
GTCO also recorded a N34.86 billion impairment reversal on other financial assets, further supporting earnings.
However, weaker non-interest income limited the impact of these gains.
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Net fee and commission income fell 8.98 per cent to N123.03 billion, while other income declined to N44.35 billion from N70.92 billion.
Although trading gains increased to N47.30 billion from N37.92 billion, total operating income rose by only 2.96 per cent to N845.56 billion.
Higher operating expenses also constrained the growth in GTCO’s bottom line.
Total operating expenses increased 7.31 per cent to N277.39 billion.
Depreciation and amortisation rose 41.82 per cent to N54.31 billion, while personnel expenses increased 4.72 per cent to N56.97 billion.
The combination of higher funding and operating costs meant that the significant reduction in impairment charges translated into only marginal growth in pre-tax profit.
While PBT increased marginally, profit after tax declined 7.76 per cent to N414.19 billion from N449.01 billion.
The decline was largely linked to a 24.33 per cent increase in income tax expense, which rose to N188.85 billion from N151.89 billion.
The higher tax charge effectively wiped out the marginal improvement recorded at the pre-tax level.
GTCO’s total assets increased 4.81 per cent to N18.62 trillion from N17.76 trillion.
Customer deposits provided much of the funding for the balance-sheet expansion, rising 11.32 per cent to N13.97 trillion and accounting for about 75.03 per cent of total assets.
However, a significant portion of the additional funding went into investment securities rather than customer lending.
Investment securities increased 21.78 per cent to N6.73 trillion, representing 36.14 per cent of total assets, while customer loans grew by just 0.48 per cent to N3.15 trillion.
Cash and cash equivalents declined 13.19 per cent to N4.74 trillion.
On the liabilities side, total liabilities rose 6.63 per cent to N15.30 trillion.
Deposits from banks fell 30.84 per cent to N226.16 billion, while other borrowed funds declined sharply by 81.02 per cent to N15.61 billion.
Total equity declined 2.82 per cent to N3.32 trillion, with retained earnings falling 5.98 per cent to N1.62 trillion.
Equity’s share of total assets consequently declined to 17.81 per cent.
On the Nigerian Exchange, GTCO’s share price closed at N137.00 on September 28, 2026, unchanged from the previous trading session.
The price represents a 51.05 per cent year-to-date gain from its opening price of N90.70 at the beginning of 2026.
The stock also recorded gains during the latter part of September, rising from N130.00 on September 18 to N137.00 on September 28, representing a 5.38 per cent increase.
GTCO touched N137.50 on September 23 before easing to N137.00, where it remained through September 28.
GTCO’s H1 2026 results present a mixed earnings picture, with stronger interest income and sharply lower impairment charges supporting profitability, while higher funding costs, operating expenses, weaker non-interest income and increased tax expenses constrained bottom-line growth.
The proposed N1.00 interim dividend provides an additional shareholder return as investors assess the group’s earnings trajectory and balance-sheet strategy in the second half of the year
