Guaranty Trust Holding Company Plc (GTCO) has released its unaudited financial statements for the half year ended June 30, 2025, revealing a pre-tax profit of ₦601.01 billion. This represents a steep decline of about 40% from ₦1.00 trillion reported in H1 2024. Profit after tax also dropped by more than 50% to ₦449.01 billion, down from ₦905.57 billion in the same period last year.
Despite the earnings contraction, the Board of Directors declared an interim dividend of ₦1.00 per share, maintaining the same payout declared in H1 2024. Shareholders on the register by October 7, 2025 will be eligible, with payments expected to be credited thereafter.
Revenue Performance
GTCO’s gross earnings fell year-on-year, but interest income provided a buffer. Interest income surged by 71.24% to ₦812.36 billion, up from ₦474.39 billion recorded in H1 2024. This was driven by investment securities which contributed ₦375 billion, compared to ₦260.15 billion in the prior period, and loans and advances which generated ₦299.63 billion versus ₦245.87 billion in H1 2024. Income from placements and other banks added to the growth, while interest income from operations outside Nigeria came in at ₦256 billion, showing the strength of GTCO’s Pan-African footprint.
On the cost side, interest expense increased to ₦154.00 billion from ₦107.93 billion in H1 2024, with customer deposit costs alone accounting for ₦147.00 billion. This rise in funding costs reflected the high interest rate environment in Nigeria. Nevertheless, net interest income rose 28.78% year-on-year to ₦632.24 billion, providing stability in earnings.
Loan Losses and Impairments
Loan impairment charges climbed moderately to ₦54.97 billion, compared to ₦47.41 billion in the same period of 2024. Most of the increase came from Stage 2 loans which are classified as under-performing. However, GTCO recorded a small recovery in Stage 3 (non-performing loans), with write-backs amounting to ₦4.27 billion. After accounting for provisions, net interest income stood at ₦577.67 billion, representing growth of 29.40% from ₦446.34 billion in the previous year.
Non-Interest Income
Fee and commission income grew 33.21% to ₦99.57 billion, up from ₦74.74 billion in H1 2024. This increase was driven by account maintenance charges, electronic banking fees, and corporate finance advisory services. However, non-interest revenue was significantly affected by a steep drop in fair value gains on financial instruments. In H1 2024, GTCO booked ₦331.60 billion in fair value gains, but in H1 2025 this fell to just ₦1.50 billion. This collapse in other income was the single biggest factor behind the year-on-year earnings decline.
Balance Sheet Position
Total assets grew 12.82% year-to-date, reaching ₦21.6 trillion as at June 30, 2025, compared with ₦19.1 trillion at year-end 2024. Loans and advances to customers rose 20.54% to ₦7.91 trillion, reflecting stronger credit expansion despite economic headwinds. Customer deposits also increased by 19.04% to ₦14.31 trillion, up from ₦12.02 trillion in December 2024, reinforcing GTCO’s status as one of the leading deposit money banks in Nigeria.
Shareholders’ funds stood at ₦1.8 trillion, up from ₦1.57 trillion at year-end 2024, supported by retained earnings and improved reserves. The capital adequacy ratio remained well above regulatory minimum, highlighting the bank’s strong capital buffer.
Segment Contributions
Nigeria remains GTCO’s largest market, accounting for the bulk of profits, though its subsidiaries in Ghana, Kenya, and other African countries also contributed positively. Non-Nigerian operations generated over ₦256 billion in interest income, providing important diversification. GTCO’s businesses in securities, payments, and asset management also delivered steady fee income, though trading income was affected by market volatility.
Outlook
The H1 2025 results show that GTCO’s profitability has been constrained mainly by the collapse in fair value gains and rising costs of funds. However, the bank has demonstrated resilience in its core lending business, maintaining healthy net interest margins and growing deposits and loans.
By sustaining an interim dividend at ₦1.00 per share, management signals confidence in the group’s liquidity and long-term earnings potential. Analysts expect GTCO to focus on rebuilding non-interest income streams, diversifying revenue away from volatile securities revaluations, and maintaining loan book quality in the second half of the year.
GTCO’s strong balance sheet and growing deposit base position it as one of the most stable banks in Nigeria’s financial system, even as macroeconomic pressures weigh on profitability.
