GTCO Profit Drops N85 Billion as Tax, Funding Costs Weigh on Earnings

Guaranty Trust Holding Company (GTCO) Plc has reported a 12.2% decline in revenue after tax to N614.57 billion for the 9 months ended September 30, 2026, in contrast with N699.64 billion recorded within the corresponding interval of 2025.

The decline represents an N85.07 billion discount in earnings, pushed largely by greater revenue tax bills, rising funding prices and weaker web curiosity revenue.

According to the group’s unaudited monetary statements, revenue earlier than tax declined by 2.3% to N879.90 billion from N900.80 billion in the identical interval final yr.

However, revenue tax bills surged by 31.9% to N265.32 billion, in contrast with N201.16 billion in 2025, considerably widening the decline in revenue after tax.

The enhance in taxation accounted for roughly N64.16 billion of the N85.07 billion discount in web revenue, highlighting the affect of a heavier tax burden on the group’s monetary efficiency.

GTCO additionally recorded a considerable enhance in funding prices, with curiosity bills rising by 27.7% to N356 billion from N278.73 billion a yr earlier.

Although complete curiosity revenue elevated to N1.29 trillion from N1.23 trillion, the expansion was inadequate to offset the upper value of funds.

Consequently, web curiosity revenue declined by 1.7% to N935.88 billion from N952.14 billion, indicating stress on the group’s curiosity margins.

Net payment and fee revenue additionally weakened barely to N182.42 billion from N183.22 billion, whereas different revenue declined by 12.9% to N74.78 billion.

Meanwhile, the group’s working bills introduced a combined image.

Personnel bills declined by 3.4% to N88.51 billion, however depreciation and amortisation bills elevated by roughly 41% to N82.46 billion.

Other working bills additionally rose by 6.5% to N228.83 billion from N214.88 billion within the corresponding interval of 2025.

Despite these pressures, GTCO recorded an enchancment in mortgage impairment costs, which declined to N29.02 billion from N69.79 billion, offering some aid to earnings.

The deterioration in profitability turned extra pronounced within the third quarter, when revenue after tax fell by 20% to N200.39 billion from N250.63 billion in the identical quarter of 2025.

The outcomes point out that though GTCO maintained substantial earnings in the course of the interval, greater taxation and funding prices continued to weigh on profitability.

For buyers, the important thing consideration shall be whether or not the group can enhance its curiosity margins and comprise working bills sufficiently to offset its rising tax obligations in subsequent reporting intervals.