Guaranty Trust Holding Company Plc (GTCO) has reported a profit before tax (PBT) of N879.9 billion for the nine months ended September 30, 2026, as improved asset quality and strong deposit growth helped sustain earnings despite significant fair value losses and a decline in profit after tax.

In its unaudited consolidated and separate financial statements released to the Nigerian Exchange Group (NGX) and London Stock Exchange (LSE), the financial services group said its profit before tax declined by 2.3 per cent from N900.8 billion recorded in the corresponding period of 2025.

GTCO attributed the performance to sustained growth across its core earnings lines, including interest income, fees and commission income, and trading income, which grew year-on-year by 5.0 per cent, 1.4 per cent and 3.1 per cent, respectively.

However, the group recorded a N87.9 billion fair value loss during the period, which weighed on its overall performance.

Profit after tax also fell to N614.6 billion from N699.6 billion in the corresponding period of 2025, a development the company attributed to changes in Companies Income Tax regulation affecting capital allowance reliefs.

Asset quality improves as loan exposure declines

Despite the moderation in profitability, the group recorded improvements in asset quality, with its IFRS 9 Stage 3 loans ratio declining to 4.0 per cent from 5.0 per cent at the end of the 2025 financial year.

At the banking level, the Stage 3 loans ratio remained unchanged at 3.4 per cent, while the cost of risk improved significantly to 0.9 per cent from 2.2 per cent over the same period.

GTCO's coverage for credit-impaired loans also strengthened to 130.7 per cent from 106.9 per cent at the end of 2025, indicating increased provisions relative to impaired loans.

The group's net loan book moderated by 4.1 per cent to N3 trillion, which GTCO said was consistent with its disciplined approach to risk asset creation.

Deposits rise by N1.11 trillion

The group's total assets rose by 3.5 per cent to N18.37 trillion as of September 2026, compared with N17.76 trillion in December 2025, while shareholders' funds stood at N3.5 trillion.

Its capital adequacy ratio remained strong at 34.2 per cent at group level and 33.9 per cent at the banking level, reflecting its capital position during the period under review.

Deposit liabilities increased by 8.6 per cent to N13.98 trillion from N12.87 trillion in December 2025, underscoring continued growth in customer deposits.

The group also reported improved earnings quality, with funded income accounting for 77.8 per cent of gross earnings, while net core earnings grew by 4.4 per cent to N1.505 trillion.

Agbaje highlights resilience and risk management

Commenting on the results, the Group Chief Executive Officer of Guaranty Trust Holding Company Plc, Mr Segun Agbaje, said the performance demonstrated the resilience of the group's business model amid challenging operating conditions.

“Our performance in the Q3 reflects the strength of a franchise built on scale, efficiency and discipline. Despite a challenging operating environment and significant fair value losses in the period, our core earnings continued to grow, our deposit base expanded strongly, our cost efficiency remains among the best in the industry, and our balance sheet remains strong, liquid and well capitalised.”

— Segun Agbaje, Group Chief Executive Officer, GTCO

He said the group would continue to pursue opportunities to improve returns while maintaining strict standards in risk management.

“Looking ahead, we will always optimise risk-free returns wherever we see them and will always be positioned to take advantage of arbitrage opportunities as market conditions evolve, without compromising the quality of our risk assets.”

— Segun Agbaje, Group Chief Executive Officer, GTCO

Agbaje added that GTCO would continue to improve its platforms and adapt to emerging technologies to meet changing customer needs, while remaining focused on sustainable value creation and superior returns for shareholders.

The group's performance indicators showed a pre-tax return on average equity of 34.0%, a pre-tax return on average assets of 6.5% and a cost-to-income ratio of 31.2%.

GTCO said it maintained a well-structured, liquid and diversified balance sheet across the jurisdictions where it operates its banking business, as well as its payments, pension and funds management businesses.

The financial services group operates across Africa and the United Kingdom, providing banking and non-banking services, including payments, funds management and pension fund administration.