Nigeria’s third largest banking Group, Guaranty Trust Holding Co.’s (GTCO) gross earnings edged higher in the first half (H1) of 2026, but rising deposit costs, almost flat lending and weaker non-interest revenue left it with lower margins and profit.
Gross earnings increased 3.2% from a year earlier to about ₦1.1 trillion, according to data from the H1 financials.
Yet profit after tax fell to ₦414.2 billion from ₦449.0 billion in H1 2025. Earnings per share declined to ₦11.18 from ₦13.59.
The result presents a growth challenge for GTCO: a larger revenue base is no longer translating into stronger shareholder returns.
Deposit Costs Catch Up
Interest income grew 7.5% to ₦873.4 billion, but interest expense rose faster—about 24.2% to ₦223.8 billion. That left net interest income up just 2.7% at ₦649.6 billion. Net interest margin narrowed to 10.2% from 11.7% a year earlier.
The pressure came from the changing mix of deposits as well as their growth. Term deposits jumped 78.4% year on year, while the share of cheaper current and savings accounts (CASA) fell 6.2 percentage points to 81.7%, according to data from CardinalStone research.
GTCO kept its cost of funds at 3.3%, but the shift toward more expensive funding meant that growth in deposits brought a larger interest bill.
Lending Retreat a Concern
Loans and advances to customers rose by only 0.5% to from the start of the year to ₦3.147 trillion from ₦3.132 trillion. About 66% of interest income came from placements and investment securities, leaving roughly 34% from loans.
Meanwhile asset yields slipped 1.4 percentage points to 13.7%.
That mix has helped GTCO earn income without rapidly expanding its loan book, but it creates a test when yields moderate, amid a dovish inclined Central Bank as interest-earning assets may generate less revenue while deposit costs remain elevated.
The figures show that loan growth provided little counterweight to margin compression in the first half.
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