GTCO posts N302.9BN profit before tax in Q1 2026, records strong balance sheet growth

Business

LAGOS, Nigeria (NPA) — Guaranty Trust Holding Company (GTCO) has reported a profit before tax of N302.9 billion for the first quarter ended March 31, 2026, reflecting sustained growth across its core banking and financial services operations.

The group disclosed the results on Thursday in Lagos in its unaudited consolidated and separate financial statements for the period under review.

According to the report, interest income increased by 17.5 per cent year-on-year, while fee income rose by 7.1 per cent, driven by continued momentum in its banking activities.

GTCO’s loan portfolio grew modestly by 1.3 per cent to N3.17 trillion, supported by a 6.3 per cent rise in customer deposits to N13.69 trillion. Total assets closed at N18.7 trillion, while shareholders’ funds stood at N3.6 trillion, underscoring what the group described as a strong capital position.

The Capital Adequacy Ratio remained robust at 39.5 per cent during the period, reflecting solid regulatory capital buffers.

Asset quality also improved, with IFRS 9 Stage 3 loans declining to 4.4 per cent from 5.0 per cent in December 2025. Cost of risk dropped significantly to 0.2 per cent from 2.2 per cent in the previous period.

“The group recorded growth across all asset lines and maintains a healthy, liquid and diversified balance sheet across its banking, payments, pension and funds businesses,” the statement said.

Group Chief Executive Officer, Mr Segun Agbaje, said the results reflected a shift in earnings quality and operational strength.

“Our Q1 2026 results mark a defining shift in the quality and composition of earnings,” Agbaje said. “We delivered solid growth across core income lines, supported by disciplined execution and a diversified, strong and healthy balance sheet.”

He added that the group remains focused on sustainable earnings growth through stronger customer relationships, expansion of ecosystem businesses, and increased use of technology to deliver faster financial services.

“We see significant headroom across payments, wealth management and banking in Nigeria and across West and East Africa,” he said. “We are positioning the group to capture these opportunities while sustaining strong, long-term value creation.”

Key performance indicators showed a pre-tax return on average equity (ROAE) of 34.4 per cent and return on average assets (ROAA) of 6.6 per cent.

The group also recorded a cost-to-income ratio of 31.5 per cent, reflecting continued operational efficiency across its businesses.