Guaranty Trust Holding Company Plc said on Wednesday it posted a profit before tax of 1.23 trillion naira (US$770 million) for the 2025 financial year, underpinned by strong growth in core banking income even as profit after tax declined following tax-related policy changes.
The Nigerian lender said audited results for the year ended December 31 showed interest income rose 23.2 percent year-on-year, while fee income increased 25.9 percent, helping sustain earnings momentum after an exceptionally strong 2024 performance.
Profit after tax fell to 865.75 billion naira from 1.02 trillion naira a year earlier, which the group attributed to fiscal policy changes affecting the taxation of investment securities, including the introduction of withholding tax on short-term instruments.
Despite the decline in bottom-line profit, the results suggest GTCO’s core earnings base remained robust in a year when many Nigerian banks continued to navigate tighter regulation, elevated inflation and shifting monetary conditions.
The group said total assets rose to 17.8 trillion naira at the end of 2025, while shareholders’ funds climbed to 3.4 trillion naira, reflecting continued balance-sheet expansion.
Asset quality also improved modestly, with IFRS 9 Stage 3 loans easing to 3.4 percent at the bank level and 5.0 percent at the group level, from 3.5 percent and 5.2 percent respectively at the end of 2024.
Its cost of risk fell sharply to 2.2 percent from 4.9 percent, indicating improved loan performance and lower impairment pressures, while the group’s net loan book expanded 12.4 percent to 3.13 trillion naira. Deposit liabilities rose 23.8 percent to 12.87 trillion naira, pointing to continued customer growth and liquidity strength.
The group’s capital adequacy ratio remained strong at 43.8 percent, well above regulatory thresholds, reinforcing its position as one of Nigeria’s best-capitalised banking groups.
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Chief Executive Officer Segun Agbaje said the results reflected the resilience of the lender’s underlying earnings capacity, particularly after the previous year’s record performance had been boosted by substantial fair-value gains that did not recur in 2025.
“Our 2025 result underscores the resilience and depth of our earnings capacity,” he said in a statement.
He said the bank had focused on improving the sustainability of earnings by driving growth across its core banking and ecosystem businesses, rather than relying on one-off gains.
That distinction is significant for investors, given that GTCO’s 2024 pre-tax profit had been lifted by 517.5 billion naira in fair value gains that were absent from the 2025 result.
The lender also reported a post-tax return on equity of 28.3 percent and a post-tax return on assets of 5.3 percent, while its cost-to-income ratio stood at 27.9 percent, underscoring its reputation for efficiency.
GTCO, which operates banking and non-banking businesses across Africa and the United Kingdom, said it would continue to focus on innovation, ecosystem expansion and long-term value creation.
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The performance comes as Nigerian banks continue to benefit from higher interest rates and balance-sheet repricing, but also face increasing scrutiny over tax changes, capital requirements and the sustainability of earnings in a more normalised operating environment.
For GTCO, the latest results suggest that while headline profitability has moderated from last year’s peak, the group remains firmly profitable and well-positioned for further growth.
