GTCO Q1 2026 Financial Results: Asset Growth and Profit Decline

Guaranty Trust Holding Company Plc (GTCO), a leading Nigerian financial institution, has unveiled its Q1 2026 financial results, offering a snapshot of its performance for the first quarter of the year. The bank’s total assets continued to grow, reflecting robust liquidity and strong customer deposits, while the profitability has faced significant challenges due to rising costs, higher tax liabilities, and a decline in non-interest income.

Key Financial Metrics	Q1 2026 (₦)	Q1 2025 (₦)	Q1 2024 (₦)	% Change Q1 2025 vs. Q1 2026	% Change Q1 2024 vs. Q1 2026
Interest Income	458.46 billion	386.03 billion	337.94 billion	+18.7%	+35.6%
Interest Expense	(110.70 billion)	(79.22 billion)	(64.28 billion)	+39.7%	+72.0%
Net Interest Income	356.29 billion	318.17 billion	273.66 billion	+12.0%	+30.2%
Fee and Commission Income	69.80 billion	67.12 billion	61.88 billion	+4.0%	+12.8%
Other Income	(1.57 billion)	30.68 billion	28.04 billion	-105.1%	-105.6%
Profit Before Tax (PBT)	302.89 billion	300.26 billion	274.09 billion	+0.9%	+10.5%
Income Tax Expense	(84.76 billion)	(42.35 billion)	(35.14 billion)	+99.9%	+141.8%
Profit After Tax (PAT)	218.13 billion	257.91 billion	238.95 billion	-15.4%	-8.7%
Earnings per Share (EPS)	5.89	7.83	7.24	-24.7%	-18.5%
Operating Cash Flow	333.68 billion	208.07 billion	188.34 billion	+60.4%	+77.0%
Investing Cash Flow	(550.8 billion)	(550.79 billion)	(545.18 billion)	0%	+1.0%
Financing Cash Flow	(34.21 billion)	(4.57 billion)	(7.11 billion)	+647.9%	+380.2%

GTCO Detailed Breakdown of Financial Results:

Revenue Analysis

Interest Income:

Q1 2026: GTCO generated ₦458.46 billion in interest income, an 18.7% increase from ₦386.03 billion in Q1 2025. This represents a 35.6% increase from Q1 2024. This growth indicates the bank’s increased lending activities and strong returns from its loan portfolio.
Q1 2025: The bank saw moderate growth in interest income compared to Q1 2024, with a 24.7% increase from ₦337.94 billion in Q1 2024.

Interest Expense:

Q1 2026: Interest expenses rose by 39.7% to ₦110.70 billion from ₦79.22 billion in Q1 2025. The growth in interest expenses reflects increased costs due to higher borrowings and customer deposits.
Q1 2025: Compared to Q1 2024, interest expenses were up by 72.0%, signaling an increase in funding requirements as the bank expanded its loan book.

Net Interest Income:

Q1 2026: Net interest income rose by 12.0% to ₦356.29 billion compared to ₦318.17 billion in Q1 2025, and was up by 30.2% from ₦273.66 billion in Q1 2024. The increase in net interest income highlights the bank’s ability to manage its interest-earning assets and liabilities effectively, despite the rise in interest expenses.

Fee and Commission Income:

Q1 2026: Fee and commission income increased by 4.0% to ₦69.80 billion, compared to ₦67.12 billion in Q1 2025 and ₦61.88 billion in Q1 2024. The steady growth in fee-based income is a positive sign, as the bank continues to diversify its revenue streams beyond interest income.

Other Income:

Q1 2026: Other income saw a dramatic decline, reporting a ₦1.57 billion loss compared to ₦30.68 billion in Q1 2025, which is a 105.1% decrease year-on-year. The sharp drop in other income reflects poor performance in the bank’s trading and investment activities.

GTCO Profitability Analysis

Profit After Tax (PAT):

Q1 2026: PAT dropped by 15.4%, from ₦257.91 billion in Q1 2025 to ₦218.13 billion in Q1 2026, and saw a decline of 8.7% compared to ₦238.95 billion in Q1 2024. This decline can be attributed to higher interest expenses, a sharp drop in other income, and higher tax costs.

Earnings Per Share (EPS):

Q1 2026: EPS decreased by 24.7%, from ₦7.83 in Q1 2025 to ₦5.89 in Q1 2026, mirroring the decline in PAT. This drop signals lower returns for shareholders despite overall asset and revenue growth.

Cash Flow Insights

Operating Cash Flow:

Q1 2026: Operating cash flow improved significantly by 60.4%, rising from ₦208.07 billion in Q1 2025 to ₦333.68 billion in Q1 2026, reflecting improved cash management and stronger loan collections.

Investing and Financing Cash Flow:

Investing Cash Flow remained stable at ₦550.8 billion, reflecting the bank’s strategy to continue purchasing investment securities and expanding its asset base.
Financing Cash Flow increased significantly by 647.9%, from ₦(4.57 billion) in Q1 2025 to ₦(34.21 billion) in Q1 2026, primarily due to debt repayments and share repurchases.