Guaranty Trust Holding Company (GTCO) Plc has reported a 12.2% decline in profit after tax to N614.57 billion for the nine months ended September 30, 2026, compared with N699.64 billion recorded in the corresponding period of 2025.
The decline represents an N85.07 billion reduction in earnings, driven largely by higher income tax expenses, rising funding costs and weaker net interest income.
According to the group’s unaudited financial statements, profit before tax declined by 2.3% to N879.90 billion from N900.80 billion in the same period last year.
However, income tax expenses surged by 31.9% to N265.32 billion, compared with N201.16 billion in 2025, significantly widening the decline in profit after tax.
The increase in taxation accounted for approximately N64.16 billion of the N85.07 billion reduction in net profit, highlighting the impact of a heavier tax burden on the group’s financial performance.
GTCO also recorded a substantial increase in funding costs, with interest expenses rising by 27.7% to N356 billion from N278.73 billion a year earlier.
Although total interest income increased to N1.29 trillion from N1.23 trillion, the growth was insufficient to offset the higher cost of funds.
Consequently, net interest income declined by 1.7% to N935.88 billion from N952.14 billion, indicating pressure on the group’s interest margins.
Net fee and commission income also weakened slightly to N182.42 billion from N183.22 billion, while other income declined by 12.9% to N74.78 billion.
Meanwhile, the group’s operating expenses presented a mixed picture.
Personnel expenses declined by 3.4% to N88.51 billion, but depreciation and amortisation expenses increased by approximately 41% to N82.46 billion.
Other operating expenses also rose by 6.5% to N228.83 billion from N214.88 billion in the corresponding period of 2025.
Despite these pressures, GTCO recorded an improvement in loan impairment charges, which declined to N29.02 billion from N69.79 billion, providing some relief to earnings.
The deterioration in profitability became more pronounced in the third quarter, when profit after tax fell by 20% to N200.39 billion from N250.63 billion in the same quarter of 2025.
The results indicate that although GTCO maintained substantial earnings during the period, higher taxation and funding costs continued to weigh on profitability.
For investors, the key consideration will be whether the group can improve its interest margins and contain operating expenses sufficiently to offset its rising tax obligations in subsequent reporting periods.
