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LAGOS - Guaranty Trust Holding Company Plc (GUARANTY:NL) reported a profit before tax of N600.9 billion for the half-year ended June 30, 2025, representing a 40.1% decline from the N1.004 trillion recorded in the same period last year.
The financial services group’s profit after tax fell by 50.4% to N449.0 billion, with earnings per share decreasing to 1,359 kobo from 3,212 kobo in the comparable period of 2024.
The significant profit reduction was primarily attributed to the non-recurrence of N493.01 billion in fair value gains that were recorded in the first half of 2024. In contrast, the company reported a N4.4 billion fair value loss in the current period.
Despite the overall decline, GTCO’s core banking business showed strength with interest income growing by 31.5% to N812.4 billion, driven by increased earning assets and improved yields. The company’s net interest margin improved by 180 basis points to 12.3%.
Total assets rose by 12.8% to N16.692 trillion, while net loans and advances increased by 20.5% to N3.358 trillion. Deposit liabilities grew by 16.6% to N12.128 trillion compared to December 2024 figures.
The group maintained strong asset quality metrics with IFRS 9 Stage 3 loans to total loans at 4.5%, down from 5.2% at the end of 2024. Cost of risk improved to 1.7% from 4.9% previously.
Contributions from subsidiaries outside Nigeria increased, with West Africa, East Africa, and United Kingdom operations now accounting for 30.8%, 1.6%, and 1.7% of group profit before tax, respectively. Non-banking entities improved their contribution to 1.4% from 0.7% in the previous year.
According to the press release statement, the company has been investing in technology upgrades to enhance its core banking systems as it continues to diversify its financial services ecosystem across banking, funds management, pension, and payments.
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