Guaranty Trust Holding Company Plc (GTCO) commenced 2025 on a strong footing, reporting a pre-tax profit of N300.4 billion for the first quarter ending March 31, 2025. This robust performance underscores the company’s resilience and leading position within Nigeria’s competitive financial services sector. The results, published on both the Nigerian Exchange Group and the London Stock Exchange, highlighted substantial growth in key income streams. Interest income experienced a significant year-on-year surge of 41.1%, while fee and commission income followed a similar trajectory with a 41.2% increase. This impressive growth in core earnings effectively mitigated the impact of the non-recurrence of a substantial one-off fair value gain of N331.6 billion recorded in the first quarter of the previous year, demonstrating the underlying strength of GTCO’s core business operations.
A closer examination of the unaudited financials reveals a healthy expansion in the Group’s loan portfolio. The loan book (net) witnessed a notable 15.6% growth, rising from N2.79 trillion at the close of 2024 to N3.22 trillion by March 31, 2025. This expansion signifies increased lending activity and reflects the growing demand for credit within the Nigerian economy. Concurrently, customer deposits also saw a positive upward trend, increasing by 7.7% from N10.40 trillion to N11.20 trillion within the same period. This growth in deposits further solidifies GTCO’s strong liquidity position and underscores the trust and confidence placed in the institution by its customer base. The Group’s total assets reached an impressive N15.9 trillion, while shareholders’ funds stood at a robust N3.0 trillion, reflecting the financial strength and stability of the institution.
GTCO’s commitment to maintaining a solid capital base is evident in its robust Full Impact Capital Adequacy Ratio (CAR) of 34.6%, significantly exceeding the regulatory minimum. This strong capital position provides a buffer against potential risks and allows for continued growth and expansion. Furthermore, the Group demonstrated improvements in asset quality, with a reduction in IFRS 9 Stage 3 loans, which represent loans with a higher probability of default. These loans decreased to 4.5% at the Group level, down from 5.2% in December 2024, and to 3.3% at the Bank level, down from 3.5%. This decline highlights improved risk management practices and a healthier loan portfolio. The cost of risk, a measure of potential losses from loan defaults, also saw a dramatic reduction to 0.4% from 4.9% at the end of 2024, further bolstering the positive narrative surrounding GTCO’s risk management and loan performance.
Segun Agbaje, the Group Chief Executive Officer of GTCO, attributed the strong Q1 performance to the strength and resilience of the Group’s diversified earnings and the robust structure of its balance sheet. Agbaje emphasized the solid growth achieved across most income lines, highlighting the benefits of a diversified revenue base and a healthy financial position. Despite the absence of the significant fair value gain recorded in the same period of the prior year, the core business operations delivered impressive results, underscoring the sustainability of GTCO’s earnings power.
Looking ahead, Agbaje expressed optimism about the remainder of the year, citing the strong fundamentals of the business, a growing customer base, and disciplined execution of strategic priorities. He expressed confidence in the Group’s ability to achieve, at the very least, a full-year pre-tax profit equivalent to that of 2024, which stood at N1.27 trillion, representing a remarkable 107.8% increase compared to the N609.31 billion posted in 2023. This ambitious target reflects the management’s confidence in the underlying strength and growth potential of the business.
GTCO’s Q1 2025 performance showcases its continued dominance in the Nigerian banking sector. Key performance indicators further solidify this position, with a pre-tax return on average equity of 42.2%, return on average assets of 7.8%, a cost-to-income ratio of 29.0%, and the aforementioned CAR of 34.6%. These metrics highlight the Group’s efficiency in generating profits, managing costs, and maintaining a healthy capital buffer, positioning it well for sustained growth and profitability in the long term. The company’s consistent performance and strong financial position reinforce its reputation as a leading financial institution in Nigeria, capable of navigating economic fluctuations and delivering sustainable returns for its shareholders.
