Guaranty Trust Holding Company Plc (GTCO) has released its audited results for the half year ended June 30, 2025, reporting a pre-tax profit of N601 billion, a decline from N1 trillion recorded in H1 2024.
Profit after tax stood at N449.01 billion, compared to N905.57 billion in the corresponding period of 2024.
Despite the drop in earnings, the Board has approved an interim dividend of N1.00 per share, maintaining the payout declared in H1 2024.
The dividend will be paid to shareholders whose names appear in the Register of Members as of October 7, 2025.
Cursory analysis of the results;
Despite the decline, gross earnings are still above the N1 trillion mark, highlighting resilience.
The top-line performance was supported by interest income, which grew by 71% year-on-year to N812.36 billion, with its contribution to gross earnings rising sharply to 76% in H1 2025, from 44% in H1 2024.
A review of the earnings shows that:
- Interest income from investments in securities accounted for over 35% of gross earnings, surpassing the 27% contribution from loans and advances.
While interest income from loans and advances grew by 22% year-on-year to N299.63 billion, income from investments in securities expanded faster, rising over 44% to N375 billion in H1 2025.
This shift matters because it shows GTCO probably relied more on fixed-income securities for earnings rather than traditional loan growth.
Notably, interest income earned outside Nigeria contributed N256 billion to total interest income.
From the core expense line, interest expenses grew by 43% year-on-year to N154 billion, outpacing the growth in interest income.
However, it accounted for only 18% of total interest income, indicating a relatively healthy spread.
As expected, the bulk of this cost came from interest paid on customer deposits, which rose by 44% to N147 billion in H1 2025.
Consequently, net interest income stood at an impressive N632.24 billion in H1 2025, representing a 29% year-on-year growth.
Impairment charges on loans and advances rose slightly to N54.97 billion in H1 2025, compared to N47.41 billion in H1 2024.
This was mainly driven by higher provisions under Stage 2 (loans showing signs of increased risk but not yet in default), which came to N58.89 billion, partly offset by a small write-back of N4.27 billion under Stage 3 (credit-impaired loans).
Thanks to these relatively modest impairment charges, net interest income after provisions still stood strong at N577.67 billion, up nearly 30% year-on-year.
Key highlights: H1 2025 vs. H1 2024:
- Gross earnings: N1.073 trillion; -22.97% YoY
- Interest Income: N812.360 billion +31.47% YoY
- Interest Expense; N180.122 billion +42.53% YoY
- Net interest income; N632.238 billion +28.63% YoY
- Impairment: N54.971 billion +15.99% YoY
- Net interest income after impairment: N577.267 billion +29.98% YoY
- Fee and commission income: N151.461 billion +32.95% YoY.
- Earnings per share N13.59 -57.69% YoY
- Loans and advances to customers N3.358 trillion +20.54%.
- Cash and Cash equivalents N4.786 trillion +2.42%
- Total Assets N16.692 trillion +12.82%.
- Customers’ deposits: N11.878 trillion +18.62%.
Non-interest income:
It also earned money from other sources, such as fees and commission income, driven by:
- Electronic banking income: N28.614 billion: -11.97%
- Commission on touch points: N24.782 billion: 616.84%
- Account maintenance fees: N17.580 billion: +12.41%
Balance sheet analysis
GTCO’s balance sheet continued to be driven by its deposit base, meaning most of the money it uses comes from deposits.
Customer deposits grew by 19% to N18.878 trillion ,accounting for 71% of the banks’ total assets of N16.692 trillion
Market performance
As of the close of trading on September 22, 2025, the shares were priced at N90 per share, reflecting a YtD gain of 63.2%.
