In its audited results for the half-year that concluded on June 30, 2025, Guaranty Trust Holding Company Plc (GTCO) reported a pre-tax profit of N601 billion, less than the N1 trillion recorded in H1 2024.
Profit after taxes was N449.01 billion, down from N905.57 billion during the same period in 2024.
Interim dividend of N1.00 per share
Despite declining earnings, the Board has approved an interim dividend of N1.00 per share, maintaining the payout announced in H1 2024.
Shareholders listed in the Register of Members will receive the dividend as of October 7, 2025.
Despite the decline, resilience is demonstrated by gross earnings still being above N1 trillion.
Customer deposits increased by 19 per cent to N18.878 trillion
Most of GTCO’s funds come from deposits, which continue to drive its balance sheet.
Customer deposits increased by 19 per cent to N18.878 trillion, representing 71 per cent of the banks’ N16.692 trillion total assets.
At N90 per share at the end of trading on September 22, 2025, the shares represented a 63.2 per year-to-date gain.
Gross earnings increase to 76%
Interest income contributed significantly to gross earnings, increasing from 44 per cent in H1 2024 to 76 per cent in H1 2025. It grew by 71 per cent year over year to N812.36 billion, supporting the top-line performance.
An analysis of the results reveals that more than 35 per cent of gross earnings came from interest income from securities investments, which was higher than the 27 per cent contribution from loans and advances.
Income from securities investments increased more quickly, increasing by more than 44 per cent to N375 billion in H1 2025, while interest income from loans and advances increased by 22 per cent year over year to N299.63 billion.
This change is significant because it indicates that GTCO most likely relied more on fixed-income securities than on conventional loan growth to generate earnings. Notably, N256 billion of the total interest income came from interest earned outside Nigeria.
Interest expenses grew by 43%
Interest expenses grew by 43 per cent year over year to N154 billion, surpassing the growth in interest income from the core expense line. However, they only made up 18 per cent of total interest income, suggesting a reasonably healthy spread.
As anticipated, interest paid on customer deposits, which increased by 44 per cent to N147 billion in H1 2025, accounted for most of this expense. As a result, net interest income increased by 29 per cent yearly to an impressive N632.24 billion in H1 2025.
In H1 2025, impairment charges on loans and advances increased marginally to N54.97 billion from N47.41 billion in H1 2024. Higher provisions under Stage 2 (loans exhibiting increased risk but not yet in default) accounted for most of this, totalling N58.89 billion. A small write-back of N4.27 billion under Stage 3 (credit-impaired loans) partially offset this.
Net interest income after provisions remained strong at N577.67 billion, up nearly 30 per cent yearly, thanks to these comparatively low impairment charges.
Key highlights: H1 2025 vs. H1 2024:
- Gross earnings: N1.073 trillion; -22.97 per cent YoY.
- Interest Income: N812.360 billion +31.47 per cent YoY.
- Interest Expense; N180.122 billion +42.53 per cent YoY
- Net interest income: N632.238 billion +28.63 per cent YoY.
- Impairment: N54.971 billion +15.99 per cent YoY.
- Net interest income after impairment: N577.267 billion +29.98 per cent YoY
- Fee and commission income: N151.461 billion +32.95 per cent YoY.
- Earnings per share N13.59 -57.69 per cent YoY.
- Loans and advances to customers N3.358 trillion +20.54 per cent.
- Cash and Cash equivalents N4.786 trillion +2.42 per cent.
- Total Assets N16.692 trillion +12.82 per cent.
- Customers’ deposits: N11.878 trillion +18.62 per cent.
Revenue from other sources
Additionally, the bank generated revenue from other sources like fees and commissions, which were motivated by:
- Revenue from electronic banking: N28.614 billion: -11.97%
- Touchpoint commission: N24.782 billion: 616.84%
- Fees for account maintenance: N17.580 billion: +12.41%