Guaranty Trust Holding Company Plc (GTCO) reported a 7.8 per cent decline in profit after tax to N414.2 billion for the half-year ended June 30, 2026, as a heavier tax burden offset largely flat pre-tax earnings.
In its unaudited results approved on July 28, 2026, the group reported profit before tax of N603.0 billion, up 0.4 per cent from N600.9 billion a year earlier. Gross earnings grew 3.2 per cent to N1.11 trillion.
Profit attributable to equity holders fell to N408.5 billion from N441.3 billion, and earnings per share declined to N11.18 from N13.59. The board proposed an interim dividend of N1.00 per share.
Income tax expense rose 24.3 per cent to N188.8 billion, lifting the effective tax rate to 31.3 per cent from 25.3 per cent. Company income tax accounted for N152.8 billion of the charge. Non-deductible expenses climbed to N32.8 billion from N10.0 billion, the new development levy added N16.0 billion, and prior-year tax under-provisions also increased.
Net interest income edged up 2.7 per cent to N649.6 billion. Interest income grew 7.5 per cent to N873.4 billion, but interest expense jumped 24.2 per cent to N223.8 billion. Net fee and commission income fell nine per cent to N123.0 billion, and other income dropped 37.5 per cent to N44.3 billion, while trading gains rose 24.7 per cent to N47.3 billion.
GTCO’s tax burden increased significantly in the first half of 2026, probably why its interim dividend remained unchanged from the previous year. The group’s income tax expense rose by 24.3 per cent to N188.8 billion in H1 2026, compared with N151.9 billion recorded in the corresponding period of 2025. This represents an increase of N36.9 billion in the tax expense.
Within the total tax charge, company income tax increased to N152.8 billion from N122.7 billion a year earlier, representing a 24.5 per cent increase. The group’s effective tax rate also climbed to 31.3 per cent in H1 2026, from 25.3 per cent in H1 2025, indicating that a larger proportion of its pre-tax earnings was absorbed by taxation during the period.
On dividends, GTCO proposed an interim dividend of N1.00 per share for the six months ended June 30, 2026, the same as the N1.00 per share interim dividend declared for the corresponding period of 2025. Therefore, despite the 7.8 per cent decline in half-year profit after tax, the group maintained its interim dividend at the previous year’s level, representing no year-on-year increase or reduction in the interim dividend per share.
Operating expenses increased 7.3 per cent to N277.4 billion, with depreciation and amortisation up 41.8 per cent to N54.3 billion and personnel costs at N57.0 billion, from N54.4 billion. The cost-to-income ratio widened to 32.1 per cent from 29.5 per cent. A lower loan impairment charge of N18.7 billion, down from N55.0 billion, provided some relief.
Second-quarter profit before tax was N300.1 billion, against N300.6 billion a year earlier. Profit after tax rose 2.6 per cent to N196.1 billion, even as net interest income fell 6.6 per cent to N293.3 billion and net fee income declined 21.8 per cent to N53.2 billion. The quarterly impairment charge dropped to N10.8 billion from N41.5 billion. Quarterly earnings per share eased to N5.36 from N5.89. The figures indicate that most of the half-year decline occurred in the first quarter, when profit after tax was about N218.1 billion, compared with N257.9 billion in the first quarter of 2025.
Total assets rose 4.8 per cent to N18.62 trillion from the end-2025 position, powered by an 11.3 per cent increase in customer deposits to N13.97 trillion. Net loans were almost flat at N3.15 trillion, leaving the loan-to-deposit ratio at roughly 22.5 per cent. Loans to individuals grew to N545.7 billion from N517.1 billion, while corporate and other non-individual lending eased slightly to N2.60 trillion.
The group leaned further into securities, with holdings at amortised cost rising to N3.32 trillion from N2.15 trillion. Financial assets at fair value through profit or loss surged to N446.6 billion from N13.6 billion, while those at fair value through other comprehensive income fell to N2.99 trillion from N3.38 trillion. Cash and bank balances declined to N4.74 trillion from N5.46 trillion, and deposits from other banks fell to N226.2 billion from N327.0 billion. Financial guarantees increased to N714.9 billion from N437.7 billion. Total equity dropped 2.8 per cent to N3.32 trillion after a N429.8 billion dividend payout.
Stage 3 loans declined to N148.8 billion from N160.3 billion at end-December 2025, lowering the computed non-performing loan ratio to about 4.6 per cent from five per cent. However, Stage 3 provisions fell faster, to N47.7 billion from N73.6 billion, cutting computed coverage to about 32 per cent from 46 per cent. Total impairment provisions on customer loans stood at N69.1 billion, down from N96.6 billion. The financial statements do not show how much write-offs and recoveries contributed to the movement.
Under Central Bank of Nigeria prudential guidelines, provisions totalled N139.7 billion against an IFRS provision of N72.6 billion, implying a regulatory risk reserve requirement of N67.1 billion. GTCO held N74.8 billion, a surplus of N7.7 billion.
The total capital adequacy ratio fell to 34.86 per cent from 43.82 per cent at end-2025, while the Tier 1 ratio declined to 32.06 per cent from 39.48 per cent. Risk-weighted assets rose to N7.93 trillion from N6.72 trillion, mainly on operational risk assets of N2.96 trillion, up from N2.13 trillion.
Credit risk-weighted assets stood at N4.89 trillion and market risk assets at N78.0 billion, from N17.4 billion. Qualifying capital slipped to N2.76 trillion from N2.94 trillion after dividend deductions. Both ratios remain above regulatory minimums.
