Zenith, Access, GTCO combined ₦1.76tn after-tax profit drops 7.7% despite lower loan-loss charges

A comparison of the nine-month financial results of three major Nigerian-listed banking groups reveals an important weakness beneath their headline earnings: combined profit before tax increased modestly, but the amount left after taxation declined. The published results of Zenith Bank, Access Holdings and Guaranty Trust Holding Company show combined profit before tax of approximately ₦2.48 trillion for the nine months ended September 2026.

That represents an increase of about 1.7 per cent from ₦2.43 trillion in the corresponding period of 2025. However, their combined profit after tax fell by approximately 7.7 per cent, from ₦1.91 trillion to ₦1.76 trillion. The divergence is particularly revealing when impairment charges are examined. The three groups recorded combined impairment charges of approximately ₦352.7 billion, compared with ₦1.20 trillion in the corresponding period of 2025. That represents a reduction of approximately 70.7 per cent. Zenith Bank’s impairment charges declined by 70.52 per cent, Access Holdings recorded a 73.45 per cent reduction, while GTCO’s charges fell by 58.41 per cent. The sharp decline in these charges provided significant relief to earnings, but it did not translate into stronger combined after-tax profitability. The individual results also show that the pressures differ across institutions. Zenith Bank recorded a 1.24 per cent increase in pre-tax profit to ₦928.80 billion, but its profit after tax declined by 11.56 per cent to ₦675.83 billion. Access Holdings reported an 8.29 per cent increase in pre-tax profit to ₦667.36 billion and a 5.95 per cent rise in profit after tax to ₦474.17 billion. GTCO, however, recorded a 2.32 per cent decline in pre-tax profit to ₦879.90 billion, while profit after tax fell by 12.16 per cent to ₦614.57 billion. Higher funding costs affected some of the groups. Access Holdings’ interest expenses increased by 10.09 per cent, while GTCO’s rose by 27.73 per cent. Taxation also weighed on earnings. Zenith Bank’s tax charge increased by 65.12 per cent, while GTCO reported a 31.9 per cent rise. The results underline why investors should examine the composition of bank earnings rather than rely exclusively on headline profit growth. Lower impairment expenses can improve reported profitability, but they do not necessarily mean that credit risks have disappeared or that banks are extending more loans to productive businesses. There are also differences in lending strategies. Zenith Bank reported 24.17 per cent growth in loans and advances, while GTCO’s customer loan book contracted by 4.08 per cent despite growth in customer deposits. For the wider economy, the question is whether the banking system’s capital strength, deposit mobilisation and profitability will translate into sustainable lending to businesses. 📰 Get Latest News Updates Join our Telegram group and receive breaking and trending news updates directly on your phone.

Related Posts2027 Presidency: APC chairman Yilwatda insists Tinubu is fit for re-election, dismisses health concernsNewsPresidency explains ₦166.79trn debt, defends Tinubu’s borrowing record as opposition questions fresh loansEconomyFood Crisis: Foreign rice hits ₦90,000 as prices jump 11.8% in six daysEconomyCrude deliveries to Nigerian refineries fall 16% in Q3 despite 127 million barrels suppliedNewsINEC identifies 54 officials over registration fraud, removes 1.6m voter recordsNewsNSC Accuses Peter Obi of Politicising Flamingos’ World Cup Victory, Demands Apology Leave a Reply Cancel replyYour email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

•Yilwatda and Tinubu The National Chairman of the…

The Presidency has defended President Bola Tinubu’s borrowing…

Rice Prices Soar: Foreign brands hit ₦90,000 as…

Nigeria’s domestic refineries received more than 127 million…

The Independent National Electoral Commission (INEC) has removed…

By Emmanuel Kwada The National Sports Commission (NSC)…