By Ayomide Otitoju
Guaranty Trust Holding Company Plc has reported a marginal 0.88 per cent year-on-year increase in profit before tax to N302.89 billion for the first quarter ended March 31, 2026, compared to N300 billion recorded in the corresponding period of 2025.
However, profit after tax declined by 15.42 per cent to N218.13 billion, largely driven by higher tax obligations during the period.
The group’s unaudited financial results showed that Habari Pay Ltd emerged as the most profitable non-banking subsidiary, posting a pre-tax profit of N3.75 billion, up from N1.66 billion in Q1 2025.
Interest income rose by 17.52 per cent year-on-year to N466.99 billion, while interest expenses increased by 39.75 per cent to N110.70 billion. Net interest income stood at N356.29 billion, representing an 11.98 per cent increase, while net fee and commission income grew by 3.99 per cent to N69.80 billion.
Loan impairment charges declined significantly by 41.05 per cent to N7.95 billion, supporting a 14.33 per cent rise in net interest income after impairment to N348.34 billion.
Earnings per share fell by 24.78 per cent to N5.89. Total assets increased by 5.54 per cent to N18.75 trillion, while loans and advances to customers rose marginally by 1.25 per cent to N3.17 trillion. Customers’ deposits grew by 5.27 per cent to N13.21 trillion, accounting for over 70 per cent of total assets, while shareholders’ funds rose by 6.28 per cent to N3.63 trillion.
The bank’s performance was underpinned by strong growth in both interest and non-interest income, as well as reduced loan impairments. Interest income from loans and advances remained a key earnings driver, contributing N183 billion, while investment securities generated N187 billion, accounting for about 40 per cent of total interest income.
Despite higher funding costs, particularly on customer deposits which accounted for 92 per cent of total interest expenses, net interest income remained resilient, growing by 12 per cent year-on-year.
Non-interest income was bolstered by N80 billion in fees and commissions, including N22 billion from e-business and N16.7 billion from credit-related services, alongside over N20 billion in net foreign exchange trading gains.
Operating expenses rose by 14 per cent to N139 billion, driven by increases in staff costs, depreciation, and other administrative expenses.
The group also recorded strong deposit mobilisation, attracting approximately N661 billion in new deposits during the quarter, further strengthening its balance sheet and liquidity position.
