GTCO’s pre-tax profit slips 2.3% to N879.90 billion in 9M 2026 as funding costs bite

Guaranty Trust Holding Company Plc (GTCO) recorded a 2.32% decline in pre-tax profit to N879.90 billion for the nine months ended September 30, 2026, compared with N900.80 billion in the corresponding period of 2025, as rising funding costs weighed on earnings.

According to the company’s unaudited financial results filed with the Nigerian Exchange (NGX) on Tuesday, October 27, gross earnings increased by 3.27% to N1.63 trillion, supported by higher interest income despite a sharp increase in interest expenses.

Profit after tax declined by 12.16% to N614.57 billion from N699.64 billion, while earnings per share fell by 19.94% to N16.58 from N20.71.

GTCO’s pre-tax profit declined despite higher interest income and a substantial reduction in loan impairment charges during the nine-month period.

The figures show that lower credit costs helped cushion the impact of rising funding expenses, but non-interest income provided limited additional support. As a result, GTCO was unable to translate its higher gross earnings into growth in pre-tax profit.

Higher operating expenses added to the pressure on GTCO’s profitability, with depreciation and amortisation increasing by 40.98% to N82.46 billion.

Although third-quarter net fee and commission income rose by 23.59% to N59.39 billion and other income more than doubled to N30.44 billion, these improvements did not prevent the decline in quarterly profitability. The results indicate that funding costs, operating expenses and taxation remained significant pressures on GTCO’s earnings.

GTCO’s balance sheet expanded during the nine-month period, with total assets rising by 3.45% to N18.37 trillion from N17.76 trillion at the end of December 2025.

The figures show that GTCO maintained a growing deposit base and stronger equity position despite the decline in pre-tax profit.

However, the fall in customer lending and the weaker third-quarter net interest income highlight the challenges facing the group as it enters the final quarter of 2026.

Investors will be watching whether GTCO can convert its expanding deposit base into loan growth, ease funding costs and sustain the benefits of lower impairment charges.

GTCO’s share price declined by 1.52% to N123.20 on Tuesday, October 27, 2026, from N125.10 at the previous trading session.

For investors, the key considerations heading into the fourth quarter include the direction of funding costs, the effective tax rate and whether GTCO can translate deposit growth into stronger lending activity. The group’s ability to sustain net interest income and contain operating expenses will also be important in determining whether profitability improves after the third-quarter slowdown.

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