Guaranty Trust Holding Company (GTCO) H2 2025 earnings summary

Executive summary

• Management focused on quality earnings, prudent risk management, and organic growth across Nigeria and international markets, aiming to maintain Nigeria's relevance while expanding in West Africa and improving East Africa and UK operations.

• Achieved #1.231trn PBT for FY 2025, driven by strong growth in core earnings, with interest and fee income up 23.2% and 25.9% year-over-year, respectively.

• Total assets grew 20% to #17.76trn, deposits up 24%, and loans up 12.4% year-over-year, reflecting robust balance sheet expansion.

• Maintained strong capital adequacy (43.8%) and liquidity (56.7%) ratios, well above regulatory minimums.

• Dividend payout ratio is expected to remain above 50%, supported by improved earnings quality and capital adequacy.

Financial highlights

• Achieved 28% post-tax ROE and 40% pre-tax ROE in 2025.

• Net interest margin improved to 12.3% from 10.9% in FY 2024, with guidance of 11% for 2026, reflecting anticipated lower interest rates.

• Cost-to-income ratio remained low at 27.9%, despite a 17.9% increase in operating expenses, reflecting efficient cost management.

• Asset management AUM grew to NGN 1.5 trillion, and non-banking subsidiaries contributed significantly to group profits.

• Ghana's loan growth reached 54%, with West Africa contributing 28% to group profit.

Outlook and guidance

• 2026 guidance includes 25% loan growth, 40% deposit growth, and a NIM of 11%.

• FY 2026 PBT guidance set at #1.4trn, with deposit growth of 25% and loan growth of 12.4%.

• Effective tax rate targeted at 27-28% for 2025, with efforts to optimize investment securities mix.

• Nigeria expected to remain at least 55% of group business, with continued expansion in West Africa and growth in non-banking subsidiaries.

• Targeting cost-to-income ratio of 30%, NPL ratio of 4%, and capital adequacy ratio of 35%.