GTCO Falls, Investors Exit Position after Earnings Disappoint
Guaranty Trust Holding Company Plc (GTCO) lost about 5% of its market value on the Nigerian Exchange (NGX) as investors reacted to its weak earnings performance for nine months of financial year 2025.
Its market value fell to N3.101 trillion, according to data from the local bourse, as 8.254 million units valued at N724.676 million were traded, led by sell side actors on NGX.
With expectation that the group will claw back, GTCO target price has been kept above its current market price amidst unimpressive earnings performance in the third quarter of 2025.
The banking sector cost leaders witnessed a surprise surge in costs profile, and its earnings performance was underwhelming, denting its profitability track record.
Its market value has been falling as investors exited positions in reaction to the breakdown in GTCO profit amidst weak net margin.
The increased regulation and potential interest rate cut will affect all banks in the coming quarters, and the fact that the naira continues to gain strength is earnings dilutive for banking players.
GTCO share price closed at N89.50 in October, a significant discount of 13.3% to its 52-week high of N103.20 kobo. The banking group’s market value has dropped further this week as investors continue to weigh their buy/sell option in line with market trends.
The financial services group’s profitability performance came under pressure in the third quarter of financial year 2025, resulting in a significant reduction in earnings per share.
Profit after tax slumped by 35.5% year on year to N699.64 billion, an underwhelming performance compared with N1.085 trillion GTCO posted in the equivalent period in 2025.
Investors’ metrics weakened as the Holdco reported a 46.1% year-on-year decline in earnings per share (EPS) to N20.71 from N38.41 in the equivalent period in 2024.
The GTCO Plc’s Q3 disappointing earnings performance reflected a steep contraction in non-interest income, which offset growth in interest income.
With a N126.71 set as target price, Meristem Securities Limited estimated 41.57% upside potential for GTCO investors on the Nigerian Exchange.
“GTCO presents a good opportunity to own a fundamentally sound stock at a bargain price of 89.50, with a target price of NGN126.71, representing an upside potential of 41.57%.
“The stock shows strong fundamentals and is poised to regain investors’ backing for the long term. Its current 10-day RSI of 19.82 shows it is in an oversold region,” the investment firm said in its stock recommendation report. Zenith Bank Price Target Sets at N81 after Q3 Earnings
