Guaranty Trust Holding Company made N688.07 billion Net profit for first 9months of 2025

Guaranty Trust Holding Company delivered a solid financial performance for the nine months ended 30 September 2025, reflecting the Group’s continued resilience and operational strength despite the absence of the exceptional one-off gains that boosted last year’s results. The Group reported a pre-tax profit of N900.80 billion, a decline from N1.27 trillion in 9M 2024, which had been bolstered by substantial unrealised fair value gains and other non-recurring income items. Net profit stood at N688.07 billion, down from N1.08 trillion in the prior year, translating to earnings per share (EPS) of N18.89, compared to N29.53 in 9M 2024. While the year-on-year comparison reflects a moderation from the extraordinary highs of the previous year, GTCO’s underlying operations remained fundamentally robust, supported by strong interest income growth, disciplined cost management, and sustained digital-driven efficiency.

Interest income continued to be the major earnings driver, rising 25.6% year-on-year to N1.23 trillion, buoyed by higher yields on loans and investment securities as well as increased asset volumes. Consequently, net interest income expanded 21.8% year-on-year to N952.14 billion, up from N781.48 billion in 9M 2024, underscoring GTCO’s ability to optimise balance sheet efficiency even amid tight monetary conditions. On the cost side, interest expense rose to N278.7 billion, representing a 40% increase, reflecting higher deposit and borrowing costs as market rates remained elevated. The Group’s cost of funds increased modestly by 47 basis points to 3.2%, but this was comfortably offset by stronger asset yields, keeping the net interest margin (NIM) healthy at 10.1%, only 59 basis points lower than last year’s 10.7%.

GTCO’s non-interest income demonstrated resilience despite the decline in fair value gains compared to the previous year. Net fee and commission income rose 15.6% year-on-year to N183.23 billion, driven by steady growth in account maintenance fees, digital banking services, and credit-related commissions. Net trading income climbed 28.1% to N77.21 billion, supported by improved foreign exchange transactions and robust gains from treasury bills and bond trading activities. However, other income fell sharply to N122.99 billion from N577.07 billion in 9M 2024, mainly due to the absence of last year’s extraordinary unrealised fair value gains. Notably, the 2025 period saw a N49.17 billion unrealised fair value loss on financial instruments, reflecting the stabilisation of exchange rates and a more subdued market environment. Despite this drag, the Group’s recurring income sources continue to show impressive stability and growth potential.

Operating expenses increased by 24.0% year-on-year to N364.98 billion, largely due to inflationary pressures, rising technology investments, and higher regulatory costs. Nonetheless, GTCO maintained one of the lowest cost structures among its peers, as shown by a cost-to-income ratio of 27.3%, compared to 18.7% in 9M 2024. This demonstrates the Group’s strong operational efficiency, driven by automation, disciplined expense management, and the benefits of its digital transformation initiatives.

Credit impairment charges rose 9.8% year-on-year to N69.79 billion, indicating higher provisioning for potential credit losses in a challenging macroeconomic environment. As a result, the non-performing loan (NPL) ratio deteriorated slightly to 4.4%, compared with 3.1% in 9M 2024. Despite this uptick, asset quality remains sound, supported by strong risk management practices and consistent recoveries. In line with the increased provisioning, profitability ratios softened. The return on average equity (ROAE) stood at 30.7%, down from 70.4% in 9M 2024, while the return on average assets (ROAA) moderated to 5.9%, compared to 11.4% in the prior period.

The Group’s balance sheet expanded significantly, showcasing sustained growth momentum and strong liquidity buffers. Total assets rose 12.6% year-to-date to N16.66 trillion, compared to N14.80 trillion as of December 2024. Loans and advances to customers increased 16.5% to N3.24 trillion, driven by targeted lending to high-yield sectors, while customer deposits grew 18.4% to N11.85 trillion, reflecting strong customer confidence and the continued depth of GTCO’s franchise. This performance highlights the Group’s ability to attract stable funding while maintaining liquidity at comfortable levels, reinforcing its market leadership.

Looking ahead, GTCO’s earnings outlook for the full year remains positive, supported by a solid Q3 performance that recorded a 52.4% quarter-on-quarter rise in net profit, fuelled by steady growth in funded income and stronger trading revenue. The Group’s performance in the final quarter of 2025 is expected to be sustained by its strong deposit base, diversified revenue streams, expanding digital ecosystem, and continued growth across subsidiaries in asset management, payments, and pensions.

Analysts project GTCO’s full-year net profit to fall within the range of N818.39 billion to N904.54 billion, with an expected ROAE of around 31.8%, underscoring its continued profitability leadership within the Nigerian banking sector. The fair value estimate remains unchanged at N105.60 per share, implying an upside potential of 18.0% from the current market price of N89.50 as of 31 October 2025. In view of its strong fundamentals, diversified earnings base, and superior efficiency metrics, analysts maintain a BUY recommendation on GTCO, positioning it as one of the most attractive large-cap plays in the Nigerian financial sector. SOURCE: CORONATION ASSET MANAGEMENT LIMITED