Guaranty Trust Holding Firm (GTCO) reported a decline in revenue for the monetary yr ended December 31, 2025, as rising prices, weaker non-interest revenue and elevated tax burden offset features in core banking operations.
The group posted revenue after tax of ₦865.75 billion, down from ₦1.02 trillion recorded in 2024, representing a decline of roughly 14.94 %. Revenue attributable to fairness holders additionally fell to ₦853.55 billion from ₦1.01 trillion within the prior yr.
Regardless of the decline in bottom-line efficiency, GTCO delivered robust development in interest-driven revenue. Curiosity revenue rose to ₦1.62 trillion from ₦1.32 trillion, whereas further curiosity revenue on monetary belongings stood at ₦31.06 billion, bringing whole curiosity revenue to over ₦1.65 trillion.
Nevertheless, this growth was partially eroded by a rise in curiosity expense, which climbed to ₦392.58 billion from ₦283.22 billion.
Consequently, internet curiosity revenue grew to ₦1.26 trillion from ₦1.06 trillion, displaying resilience within the bank’s core lending and funding actions.
Extra importantly, mortgage impairment expenses declined sharply to ₦66.42 billion from ₦136.66 billion, indicating improved asset high quality and diminished credit score threat publicity in the course of the interval.
Web curiosity revenue after impairment rose to ₦1.19 trillion from ₦921.92 billion, underscoring robust operational efficiency throughout the core banking section.
Non-interest revenue, nevertheless, introduced a combined outlook. Payment and fee revenue elevated to ₦278.51 billion from ₦221.23 billion with internet price revenue rising to ₦244.39 billion.
In distinction, internet buying and selling features declined to ₦78.74 billion from ₦86.24 billion, suggesting weaker efficiency in buying and selling actions amid market volatility.
A serious drag on earnings got here from “different revenue,” which dropped considerably to ₦139.95 billion from ₦499.07 billion in 2024.
The sharp decline highlights diminished contributions from non-core income streams, notably dividend revenue and different investment-related earnings that had beforehand supported profitability.
Working prices rose throughout key expense traces, additional weighing on margins. Personnel bills elevated to ₦101.05 billion from ₦85.40 billion, whereas depreciation and amortisation rose sharply to ₦89.52 billion from ₦58.03 billion.
Different working bills additionally rose to ₦284.80 billion from ₦259.60 billion amid inflationary pressures and the growth of operational scale.
Consequently, revenue earlier than tax declined to ₦1.23 trillion from ₦1.27 trillion, regardless of stronger curiosity revenue. The affect was additional amplified by the next tax cost of ₦365.33 billion, in comparison with ₦248.44 billion within the earlier yr, resulting in the general decline in internet revenue.
Earnings per share dropped to ₦25.43 from ₦35.44, indicating diminished returns to shareholders regardless of the bank’s robust income base.
On the optimistic facet, GTCO recorded a rebound in different complete revenue, which stood at ₦9.83 billion in comparison with ₦121.48 billion in 2024. Whereas considerably decrease year-on-year, the optimistic determine displays some stabilization in valuation changes and overseas foreign money translation impacts.
Complete complete revenue for the yr declined to ₦875.58 billion from ₦1.14 trillion, aligning with the broader pattern of diminished profitability and weaker non-core contributions.
On the firm stage, standalone efficiency remained robust, with revenue after tax rising to ₦462.61 billion from ₦364.70 billion, largely pushed by dividend revenue from its banking subsidiary, Guaranty Trust Bank Ltd.
Total, GTCO’s 2025 efficiency highlights a transparent divergence between robust core banking revenue and weakening ancillary income streams. Whereas improved asset high quality and better curiosity revenue present a strong basis, rising prices, declining non-interest revenue and elevated tax burden proceed to strain earnings.
Traders are anticipated to watch the group’s potential to maintain curiosity revenue development whereas rebuilding non-core income streams and managing value effectivity in an more and more difficult macroeconomic setting.
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