Despite expanding its balance sheet and growing customer deposits, Guaranty Trust Holding Company (GTCO) saw its bottom-line profits decline sharply in 2025 compared to the previous year.
Pinnacle Daily analysis of the bank’s 2025 audited financial statement reveals that GTCO suffered higher tax expenses and a plunge in non-interest income, declining its profit.
The bank’s gross earnings remained relatively stable at ₦2.15 trillion, up marginally by 0.1 per cent from ₦2.15 trillion in 2024.
However, profit before tax fell by 2.8 per cent to ₦1.23 trillion, while net income for the year dropped 14.9 per cent to ₦865.7 billion, highlighting the impact of rising taxes and lower gains outside core lending operations.
A closer look at the numbers shows why GTCO’s strong growth in assets and lending did not translate into higher profits.
Net interest income rose by 19.1 per cent to ₦1.26 trillion, reflecting growth in loans and advances, but “Other Income,” a key component of non-interest earnings, plunged by ₦359 billion to ₦140 billion from ₦499.1 billion in 2024.
This swing was largely due to an unrealised fair value loss of ₦81.8 billion in 2025, compared with a substantial gain of ₦517.5 billion a year earlier.
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At the same time, the bank’s tax expenses surged 47.1 per cent to ₦365.3 billion, eroding profit margins.
A further review indicates several factors, including a sharp drop in tax-exempt income from ₦195 billion to ₦57.2 billion, a shift from a deferred tax credit to a deferred tax expense of ₦35.7 billion, higher non-deductible expenses, and increased charges for prior-year under-provisions.
Even though the bank’s lending and asset base are stronger, higher taxes and the reversal of unrealised gains significantly impacted the bottom line.
GTCO’s financial position, however, paints a picture of resilience as total assets grew 20 per cent to ₦17.76 trillion, while equity rose 25.8 per cent to ₦3.41 trillion following the recapitalisation programme.
Customer deposits surged to ₦12.55 trillion, up from ₦10.01 trillion, while loans and advances grew 12.4 per cent to ₦3.13 trillion, reflecting robust confidence from depositors and borrowers.
Shareholders saw a decline in earnings per share, which fell 28.2 per cent from 35.44 kobo to 25.43 kobo, yet the board proposed a higher total dividend of ₦12.76 per share for 2025, up from ₦8.03 per share in 2024.
This may have signalled the management’s confidence in the bank’s long-term strength as capital adequacy improved to 43.82 per cent, well above the regulatory minimum of 16 per cent, underscoring a strong financial buffer.
Commenting on the results, the Group Chief Executive Officer, Segun Agbaje, said, “Our 2025 result underscores the resilience and depth of our earnings capacity. Following a record 2024, which included significant fair value gains, our focus has been on strengthening the sustainability of our earnings by driving growth across our core banking and ecosystem businesses.
“The strength of our underlying earnings, despite a stronger Naira and tighter regulatory parameters, reflects the quality of our franchise and the discipline with which we execute our strategy. Importantly, this strong core earnings performance underpins our capacity to sustain and grow shareholder returns. Our record dividend payout this year is not only a reflection of our current profitability but also of our confidence in the Group’s long-term earnings potential.
“Looking ahead, we remain focused on scaling our ecosystem, driving innovation across our financial services platform, and delivering consistent, high-quality earnings that support superior value creation for our shareholders.”
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X
