GTCO Profit Falls by 35.5%, Q3 Earnings Disappoint as Costs Spike
Guaranty Trust Holding Company Plc (GTCO) 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 metric 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.
Detailed from its unaudited financial statement released on the Nigerian Exchange, pre-tax profit declined 26.1% year on year to N900.81 billion from N1.219 trillion in the equivalent period in 2024.
Its disappointing earnings performance was majorly as a result of cost pressures and fair value losses, which have continued to pose downside risks to earnings momentum in recent times.
A higher effective taxation increase of 49.6% further compressed bottom-line earnings. Consequently, profit after tax dropped by 35.5% year on year to N699.64 billion
A review of the earnings release highlighted that the group interest income advanced by 25.6% y/y to N1.23 trillion, supported by higher income on investment securities, loans to customers and cash and bank balances.
The breakdown of its interest yielding assets indicated that investment securities income surged by 39.9%, loan to customers increased by 14.9% while cash and bank balance climbed by 15.1% year on year.
Interest expense, however, surged by 40.2% y/y to N278.73 billion, driven by higher funding costs from customers, financial institutions, and borrowings. .
GTCO customers funding costs surged by 41.5% year on year while interest payment to financial institutions increased by 4% while borrowing costs spiked by 43.3% year on year.
Despite the cost pressures, net interest income grew 21.8% y/y to N952.14 billion, reflecting effective asset repricing, analysts said.
GTCO’s non-interest income contract by 56.5% y/y to N346.28 billion in 9M-225. Analysts noted that this was insufficient to offset the fair value loss of N49.17 billion recorded in the period, in contrast to N523.22 billion gain in the equivalent period in 2024. Consequently, operating income fell 18.9% y/y to N1.23 trillion.
Unfortunately operating expenses maintained an uptrend, up by 11.3% y/y to N327.83 billion, driven by a 28.1% surge in personnel costs, and AMCON levy increased by +38.7% y/y, in addition to a spike in depreciation. As a result, the cost-to-income ratio deteriorated to 21.0% from 15.3% in 12 months.
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