GTCO’s N1.231 trillion PBT: what powered the 2025 result
Guaranty Trust Holding Company (GTCO) has released audited 2025 numbers, delivering profit before tax (PBT) of N1.231 trillion, down a modest 2.8% year on year from a record 2024. Management frames this as resilience after last year’s one-offs, and the detail backs that up: core banking income did the heavy lifting while market-related gains went into reverse.
Profit after tax (PAT) came in at N865.7 billion, down 14.9%. The bigger drop at the bottom line was largely driven by tax changes on investment securities, notably withholding tax on short-term instruments, which raised the effective tax burden.
Revenue mix: interest income surges, non-interest income normalises
Interest income jumped 23.2% to N1,653.2 billion as the bank grew earning assets, benefited from higher yields, and saw solid contributions from its non-banking verticals (asset management, pensions and payments). Gains were broad-based: fixed income up 34.8%, placements up 22.5%, and loans and advances up 9.8%.
Non-funded income fell 38.4% to N497.2 billion as last year’s outsized gains did not recur. In fact, GTCO booked an N81.8 billion fair value loss on financial instruments versus a N517.5 billion gain in 2024, with a 7% appreciation of the Naira against the US dollar swinging the mark-to-market line.
Why that swing matters
It’s a classic reversal. In 2024, market tailwinds plumped up “Other Income”. In 2025, those winds turned. The silver lining: fee and commission income still rose 25.9% thanks to higher transaction volumes across both banking and non-banking businesses. That suggests the engine room – customers using GTCO’s ecosystem – continues to scale.
Margins, costs and profitability: healthier spread, higher cost base
Net interest margin (NIM) expanded by 140 basis points to 12.3%, as asset yields rose to 14.6% against a more modest rise in cost of funds to 2.1%. That spread is powerful and underpins core profitability.
Operating income dipped 2.3% to N1,657.3 billion, reflecting the NFI drop. Operating expenses rose 17.9% to N475.4 billion. Even so, the group-wide cost-to-income ratio settled at a lean 27.9% (from 24.1%). It’s higher, but still best-in-class by African banking standards.
Return on equity moderated to 28.3% (post-tax) from 48.6%, again a function of fewer market gains and a higher share count after capital raises. It remains a robust level of profitability.
Balance sheet strength: deposits surge, liquidity and capital are hefty
Total assets rose 20.0% to N17.761 trillion. Deposits grew a punchy 23.8% to N12.874 trillion, outpacing net loan growth of 12.4% to N3.132 trillion. That leaves the loans-to-deposits ratio at a conservative 24.3%, giving GTCO ample headroom to lend when risk-reward looks right.
Liquidity ratio improved to 56.7% (49.2%) and capital adequacy strengthened to 43.8% (39.3%). Those levels give the group significant flexibility to absorb shocks and support growth.
Credit quality: lower risk charge and solid coverage
The group’s IFRS 9 Stage 3 loans ratio improved to 5.0% from 5.2% (Bank level 3.4% from 3.5%). Cost of risk fell sharply to 2.2% from 4.9%, reflecting a de-risked balance sheet and better asset quality.
Coverage of lifetime credit-impaired loans remains above 100% at Group level (106.9%) and very strong at Bank level (192.5%). Group coverage is lower than last year (138.7%), so it’s one to monitor, but still comfortably protective.
Geographic and business mix: Nigeria still core, West Africa rising
Profit contribution from West Africa (ex-Nigeria) increased to 28.1% and from Non-Banking Entities to 1.7%. The UK and East Africa contributed 1.5% and 0.9% respectively. As a result, Nigeria’s banking subsidiary contribution reduced to 70.8% from 79.2%.
This is healthy diversification. More profit coming from outside Nigeria and from non-banking verticals should make earnings less volatile over time.
Dividend and EPS: cash returns up, per-share math down
Management flagged a record dividend payout for the year, underpinned by strong core earnings. The exact dividend amount is not disclosed in this RNS.
Earnings per share fell to N25.4 (from N35.4), or 2,543 kobo on the company’s measure. That reflects both lower post-tax profit and a larger share count following capital raises in 2024 and 2025 – worth remembering when comparing per-share trends.
Key numbers at a glance
| Metric | FY-2025 | FY-2024 |
|---|---|---|
| Profit before tax | N1,231.1bn | N1,266.2bn |
| Profit after tax | N865.7bn | N1,017.8bn |
| Interest income | N1,653.2bn | N1,341.8bn |
| Non-interest income | N497.2bn | N806.5bn |
| Operating income | N1,657.3bn | N1,696.9bn |
| Operating expenses | N475.4bn | N403.0bn |
| Net interest margin | 12.3% | 10.9% |
| Total assets | N17,761.2bn | N14,795.7bn |
| Net loans | N3,132.3bn | N2,785.8bn |
| Deposit liabilities | N12,874.0bn | N10,401.4bn |
| Cost-to-income ratio | 27.9% | 24.1% |
| ROAE (post-tax) | 28.3% | 48.6% |
| Liquidity ratio | 56.7% | 49.2% |
| Capital adequacy ratio | 43.8% | 39.3% |
| Cost of risk | 2.2% | 4.9% |
| IFRS 9 Stage 3 loans (Group) | 5.0% | 5.2% |
My take: why this matters and what to watch next
On balance, this is a good quality result. Core banking is strong – higher margins, healthy deposit growth, and tighter risk costs. The big swing factor was market-related income and tax changes, not a deterioration in the franchise. Liquidity and capital are muscular, giving GTCO room to keep growing and paying dividends.
Negatives to keep in mind: the cost base rose nearly 18%, the cost-to-income ratio ticked up, and Group coverage reduced from last year (albeit still above 100%). Returns are lower than the 2024 peak, and EPS reflects dilution from recent capital raises.
What I’ll be watching: sustainability of the 12%+ NIM if rates normalise, continued fee growth from payments, pensions and asset management, and whether the geographic mix keeps tilting towards West Africa ex-Nigeria. Also watch the impact of the stronger Naira on trading and fair value lines – 2025 shows how quickly that can move.
Bottom line: despite a tougher comparison and tax headwinds, GTCO has demonstrated earnings resilience. If management keeps compounding the core and diversifying the ecosystem, the record dividend talk should have legs – even if the exact payout isn’t disclosed here.
