Guaranty Trust Holding Company PLC (GTCO) has reported a record-breaking profit before tax of N1.16 trillion for the 2025 financial year, representing a massive jump from the N607.7 billion recorded in the previous year.
According to the audited financial statements filed on NGX, the Group’s profit after tax settled at N945.3 billion, solidifying its position as one of Africa’s most profitable financial institutions.
Checks by NewsDirect revealed that the profit surge was primarily fueled by a 120% increase in gross earnings, which climbed to N1.8 trillion. A significant portion of this growth was anchored by interest income, which soared to N1.05 trillion, up from N478.9 billion in 2024. This was driven by the high-interest-rate environment and the Group’s strategic expansion of its loan book and investment securities.
Non-interest income also played a pivotal role, contributing N750.4 billion to the bottom line. This was bolstered by net gains on financial instruments and a steady rise in fee and commission income, which grew by 45% as the Group’s digital banking and payment platforms saw increased transaction volumes.
Meanwhile, the Holding Company’s diversification into pension and asset management also began to contribute more meaningfully to the Group’s diversified revenue base.
Despite the stellar profit figures, several factors significantly impacted the Group’s gross margins. Operating expenses rose by 62%, reaching N425.8 billion, driven largely by inflationary pressures, rising energy costs, and increased regulatory levies, including the AMCON charge and the Nigeria Deposit Insurance Corporation (NDIC) premiums.
Staff costs also saw a marked increase as the Group adjusted compensation packages to retain talent amid rising costs of living.
Impairment charges on financial assets also increased to N115.7 billion, reflecting a cautious approach to risk management in a volatile macroeconomic environment.
Similarly, taxation also exerted a significant pull on the final figures, with the Group’s tax expense rising to N214.7 billion, compared to the N68.4 billion recorded in the prior year.
However, the Group’s total assets crossed the N15 trillion mark, supported by a 40% growth in customer deposits, which totaled N9.2 trillion.
The net loan book also expanded to N3.5 trillion, as the Bank continued to support critical sectors of the economy. With a Capital Adequacy Ratio (CAR) maintained well above regulatory minimums and a non-performing loan (NPL) ratio of 4.2%, the Group remains well-capitalized and positioned for further growth in the 2026 fiscal year.