GTCO stock faces earnings pressure as nine-month profit falls
Published on 11/09/2026 at 01:12 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSProfit pressure meets core growth
- GTCO's profit after tax declined as fair value losses and tax changes outweighed stronger core income.
- Deposits and total assets expanded, while the net loan book contracted during the reporting period.
- Improved credit-quality measures and strong capital remain key factors for investors watching the next results.
Guaranty Trust Holding Company reported lower headline earnings for the nine months ended September 30, 2026, despite growth in several core income lines. BizWatch Nigeria reported on the results released to the Nigerian Exchange that profit before tax fell 2.3 percent year on year to 879.9 billion Naira from 900.8 billion Naira.
Tax and fair value losses weigh
Profit after tax declined to 614.6 billion Naira from 699.6 billion Naira a year earlier. GTCO said a fair value loss of 87.9 billion Naira and changes to Companies Income Tax regulations affecting capital allowance reliefs contributed to the pressure on earnings.
Underlying activity was more resilient. Net core earnings increased 4.4 percent to 1.505 trillion Naira, while interest income rose 5.0 percent, fees and commission income gained 1.4 percent and trading income increased 3.1 percent. The figures show that stronger operating income did not translate into higher reported profit for the period.
Balance sheet sends mixed signals
Total assets rose 3.5 percent to 18.37 trillion Naira from 17.76 trillion Naira at the end of 2025. Customer deposits increased 8.6 percent to 13.98 trillion Naira, but the net loan book declined 4.1 percent to 3.00 trillion Naira as the group maintained a cautious approach to risk-asset creation.
Credit indicators improved during the period. The Stage 3 loans ratio fell to 4.0 percent from 5.0 percent at the end of 2025, while the cost of risk declined to 0.9 percent from 2.2 percent. The group reported a capital adequacy ratio of 34.2 percent and a pre-tax return on average equity of 34.0 percent.
What investors will watch next
The next results should show whether core earnings can again support higher overall profit as the effects of fair value movements and revised tax rules develop. Investors will also focus on whether deposit growth can be converted into loan growth without weakening asset quality or capital strength.
GTCO operates as a financial holding company for Guaranty Trust Bank and provides commercial banking services across Nigeria and several African markets as well as the United Kingdom. Its activities cover corporate, commercial, business, retail, SME and public-sector banking, alongside payment, funds-management and pension businesses described by the company. GTCO's investor-relations page describes the group as a broader financial ecosystem. In Nigeria's listed banking sector, Simply Wall St lists Zenith Bank, First HoldCo and United Bank for Africa among GTCO's competitors; its latest comparison places GTCO below Zenith Bank and First HoldCo but above United Bank for Africa by market capitalisation.
Guaranty Trust Holding Company
- Ticker: GTCO
- Reporting period: Nine months ended September 30, 2026
- Profit before tax: 879.9 billion Naira, down 2.3 percent year on year
- Profit after tax: 614.6 billion Naira
- Net core earnings: 1.505 trillion Naira, up 4.4 percent
- Total assets: 18.37 trillion Naira
- Customer deposits: 13.98 trillion Naira
- Stage 3 loans ratio: 4.0 percent, compared with 5.0 percent at the end of 2025
