GTCO Posts N879.9bn Pre-tax Profit Despite Fair Value Losses

Guaranty Trust Holding Company Plc (GTCO) recorded a pre-tax profit of N879.9bn for the nine months ended September 30, 2026, as fair value losses on financial instruments weighed on earnings despite growth across core income lines.

The result is a 2.3% decline from the N900.8bn pre-tax profit recorded in the same nine-month period of 2025. The figures were contained in the group's unaudited financial statements filed with the Nigerian Exchange Group and the London Stock Exchange.

Core income rises, fair value loss bites

Interest income, fees and commission income, and trading income increased year-on-year by 5.0%, 1.4%, and 3.1%, respectively. But a fair value loss of N87.9bn limited the group's overall profitability.

Profit after tax fell to N614.6bn from N699.6bn in the same period of 2025. GTCO said the decline partly reflected changes to Companies Income Tax rules affecting capital allowance reliefs.

Funded income accounted for 77.8% of gross earnings, while net core earnings increased by 4.4% to N1.505tn. The group's pre-tax return on average equity stood at 34.0%, pre-tax return on average assets at 6.5%, and cost-to-income ratio at 31.2%.

Balance sheet expands, loan book shrinks

GTCO's total assets increased by 3.5% to N18.37tn from N17.76tn at the end of December 2025. Shareholders' funds stood at N3.5tn.

Customer deposits grew by 8.6% to N13.98tn, compared with N12.87tn at the end of 2025. The group's net loan book, however, contracted by 4.1% to N3.00tn. GTCO attributed the decline to a deliberate and cautious approach to risk asset creation.

Capital adequacy ratio remained strong at 34.2%, while the banking subsidiary recorded a ratio of 33.9%.

Asset quality improves

Asset quality indicators improved during the period. The non-performing loan ratio declined to 4.0% from 5.0% in December 2025. Cost of risk dropped to 0.9% from 2.2%. Coverage for credit-impaired loans improved to 130.7% from 106.9%, indicating stronger provisions against potential loan losses.

Group Chief Executive Officer Segun Agbaje said the performance demonstrated the resilience of the company's business model despite challenging operating conditions. Agbaje said: "Our performance in Q3 reflects the strength of a franchise built on scale, efficiency and discipline."

He noted that the group expanded its core earnings, widened its deposit base and maintained strong liquidity and capital positions despite absorbing significant fair value losses.

The CBN's September lending rate data showed Nigerian banks charging borrowers from single digits to as high as 60%, depending on perceived credit risk. The figures cover prime lending rates for lower-risk customers and maximum lending rates for higher-risk borrowers.

For Nigerian businesses, GTCO's numbers point to a lender with strong capital and liquidity buffers, even as it slows loan growth and keeps a cautious stance on risk assets. Its improved asset quality and lower cost of risk could support confidence in the banking sector, but the profit decline shows how fair value losses and tax changes can pressure earnings.