GTCO: Diversification Drives Impressive 2026 Half Year Performance - THISDAYLIVE

Guaranty Trust Holding Company Plc (GTCO) recently became the first financial institution to release audited financial statements for the half year (H1) period ended June 30, 2026.The H1 2026 results revealed that the Group’s diversification led to reinforce its balance sheet that is well structured, liquid and profit generation oriented.GTCO in the period under review reported gross earnings of N1.11 trillion, about 3.2 per cent increase over N1.07 trillion reported in H1 2025.

The gross earnings growth continues to translate into strong earnings, supported by the breadth of the Group’s ecosystem and the business’s ability to leverage the Group’s structurally low-cost model.Also, the disciplined execution and operating leverage further support sustainable profitability. This growth was recorded in each jurisdiction where the Group operates a banking franchise, and across its payments, pension and funds Management businesses.From the H1 2026 results, the growth in gross earnings was driven by interest income of about N873.39 billion, a seven 7.5per cent increase over N812.36 billion in H1 2025,   while interest expenses moved from N180.12billion, up by 24.24 per cent to N223.79billion in H1 2026.  

Consequently, net interest income grew at a more moderate pace to N649.60 billion in H1 2026, representing an increase of 2.7 per cent when compared to N632.24 billion in H1 2025.  The Group booked a notably lighter loan impairment charge of N18.72 billion in H1 2026, down 65.9 per cent from N54.97 billion in H1 2025, a meaningful boost to profitability and a signal of improved asset quality.The Group’s operating expenses closed H1 2026 at N277.4 billion in H1 2026, up by 7.3 per cent from N258.5billion in H1 2025, with non-controllable costs accounting for 26.6per cent of total OPEX.

The increase was driven largely by higher regulatory charges, depreciation and infrastructure-related costs, as well as continued investment in people and customer service. These pressures were partly mitigated by reductions across technology, marketing and other discretionary expense lines, reflecting continued focus on cost efficiency.Other factors that impacted on  OPEX was regulatory and statutory charges that remained a significant component of the cost base, with AMCON expenses increasing 9.9per cent to N55.9billon and Deposit Insurance Premium rising 15 per cent to N18.0billion.

The increase reflects the scale of the Group’s balance sheet and deposit franchise, with these costs largely determined by regulatory and statutory requirements.Also, the Group continued to absorb higher infrastructure-related costs, with depreciation and amortisation increasing 41.8per cent to N54.3billion, while occupancy costs and repairs and maintenance rose 10.2per cent to N19.8billion. The movements reflect the continued build-out and maintenance of the Group’s physical and operating infrastructure.In all, the Group posted a profit before tax (PBT) of N603.03 billion in H1 2026, a 0.35 per cent increase over N600.90 billion reported in H1 2025.

Geographically, Nigeria remained the Group’s largest profit contributor, accounting for 70.2per cent of  the PBT. The rest of West Africa contributed 27.5per cent of PBT, indicating stronger profitability relative to its share of revenue.  In contrast, East Africa and Europe collectively accounted for 2.4per cent of PBT, reflecting comparatively lower profitability from these markets.The management of GTCO, thus,  declared an interim dividend of N1 per ordinary share for the half year ended June 30, 2026. The dividend payment is subject to applicable withholding tax and will be made to shareholders whose names appear on the register of members by October 12, 2026.

Shareholders holding shares on the Nigerian Exchange Limited (NGX) will receive the dividend electronically on October 20, 2026, while foreign holders of Depositary Interests on the London Stock Exchange (LSE) will be paid on November 3, 2026.

The Group’s total assets crossed the N18 trillion mark to N18.6trillion as of June 30, 2026, an increase of 4.8 per cent from   N17.76 trillion reported in 2025. Loans & advances to customers closed June 30, 2026 at N3.15 trillion, up by 0.48 per cent from N3.13 trillion reported in 2025.  Also, deposits from customers stood at N13.96trillion as of June 30, 2026, a growth of 11.32 per cent from N12.55trillion in 2025.

A 21.9per cent growth in investment securities reflects continued deployment of the expanded funding base while maintaining balance-sheet flexibility. Well-diversified asset base structure across all the Group’s business verticals with loans accounting for 16.9per cent, a pointer to future opportunities  for growth; investment securities – 36.9per cent, cash & cash equivalent – 25.4per cent, a testament of the Group’s strong liquidity position and robust  earning capacity.

In the period under review, GTCO generated a combined profit before tax of N15.94 billion from its three non-banking subsidiaries, underscoring the growing contribution of its fintech, asset management and pension businesses to Group earnings.While the contribution remains relatively small compared to GTCO’s  overall  PBT of N603.03 billion, the results highlight the increasing role of the Group’s non-banking businesses in its diversification strategy.

The performance came from HabariPay Limited, Guaranty Trust Fund Managers Limited (GT Fund Managers) and Guaranty Trust Pension Managers Limited (GT Pension Fund Administrator), according to notes accompanying the group’s audited H1 2026.The three subsidiaries collectively grew pre-tax profit by about 85 per cent from N8.62 billion recorded in the corresponding period of 2025, driven largely by strong earnings growth at HabariPay and GT Fund Managers.GTCO’s fintech and payment services subsidiary, HabariPay delivered the strongest earnings growth among the non-banking businesses during the period. Operating income rose to N9.44 billion in H1 2026 from N5.05 billion in the corresponding period of 2025. After operating expenses of N1.63 billion, profit before tax increased to N7.81 billion, compared to N4.02 billion a year earlier, representing a 94per cent   increase.

The company reported no tax expense for the period, leaving profit after tax unchanged at N7.81 billion.For GTFund Managers, it also recorded a strong performance, with operating income increasing to N8.83 billion from N4.61 billion in H1 2025. After operating expenses of N1.62 billion, profit before tax rose to N7.21 billion, almost double the N3.71 billion reported in the corresponding period of last year. Following a tax charge of N1.49 billion, profit after tax stood at N5.72 billion, up from N3.60 billion in H1 2025.

In addition, GT Pension Fund Administrator posted more modest growth compared to the Group’s fintech and asset management businesses. Operating income increased to N2.15 billion in H1 2026 from N1.96 billion a year earlier.After operating expenses of N1.22 billion, PBT rose slightly to N927.84 million from N900.03 million recorded in the corresponding period of 2025. The pension subsidiary recorded no tax charge during the period, resulting in a profit after tax of N927.84 million.Key Ratios that Reflect Impressive Performance

Capital Adequacy Ratio (CAR) remained very strong, closing at 34.9per cent (Bank 29.2per cent), and asset quality improved as evidenced by IFRS 9 Stage 3 Loans which closed at 3.5per cent and 4.6per cent at both Bank and Group Level in H1-2026 (Bank -3.4per cent, Group five per cent in FY-2025). Cost of Risk (COR) improved to 0.6per cent from 2.2per cent during the same period.Overall, the Group continues to post one of the best metrics in the Nigerian Financial Services Industry in terms of key financial ratios i.e., Pre-Tax Return on Equity (ROAE) of 35.9per cent, Pre-Tax Return on Assets (ROAA) of 6.6per cent, Capital Adequacy Ratio (CAR) of 34.9per cent (Bank: 29.2per cent) and Cost to Income ratio of 31.5per cent.Group Chief Executives Officer Comments

Commenting on the performance, Group Chief Executive Officer, GTCO, Mr. Segun Agbaje, said: “Our half year results speak to the strength of what we have built: a resilient franchise, a strong balance sheet and a business that no longer depends on banking alone.

“Fair value movements weighed on reported earnings, but the core business held firm. Interest and trading income grew, deposits strengthened, and asset quality improved at Group level. The priority now is to execute with discipline and grow responsibly. Digital is our lever for scaling across Banking, Payments, Pension and Funds Management, and for building a more diversified and resilient financial services group.”

GTCO is a leading financial services group with operations across Africa and the United Kingdom. Renowned for its strong corporate governance, innovative financial solutions, and customer-centric approach, the Group provides a wide range of banking and non-banking services including payments, funds management, and pension fund administration. The group is committed to delivering long-term value to stakeholders while driving growth and development across its markets.

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