By Ali Elias
Guaranty Trust Holding Company Plc (GTCO) has announced a staggering N300.4 billion profit before tax for the first quarter of 2025, reinforcing its position as a top player in Nigeria’s financial sector—even as concerns mount over the growing number of charges imposed on customers.
The unaudited results, submitted to both the Nigerian Exchange Group and the London Stock Exchange, reflect strong performance in core banking activities. Interest income rose by 41.1% year-on-year, while fee and commission income jumped 41.2%—a development likely tied to increased transaction charges across banking platforms.
This profit performance was achieved despite the absence of the exceptional N331.6 billion fair value gain recorded in Q1 2024, highlighting the bank’s solid underlying earnings capacity.
GTCO’s loan book expanded by 15.6%, from N2.79 trillion in December 2024 to N3.22 trillion as of March 2025. Customer deposits also rose by 7.7%, reaching N11.20 trillion. Total assets stood at N15.9 trillion, with shareholders’ funds at N3.0 trillion.
The group reported a cost-to-income ratio of 29.0%, a return on average equity of 42.2%, and a robust capital adequacy ratio of 34.6%, far exceeding regulatory requirements. Asset quality also improved, with IFRS 9 Stage 3 loans reducing to 4.5% from 5.2% at the Group level.
“We remain optimistic about the year ahead,” said Group CEO Segun Agbaje. “The fundamentals of our business are strong, our customer base continues to grow, and we are executing with discipline across our strategic priorities.”
He added, “While the fair value gains of N331.6 billion reported in Q1 2024 did not recur this quarter, the Group recorded solid growth across most income lines, underpinned by a diversified revenue base and a healthy, well-structured balance sheet.”
However, financial experts and customer advocates continue to raise concerns about the burden of rising fees—such as SMS alerts, card maintenance, and transfer charges—many of which fall under the fee and commission income category.
In 2024, GTCO had recorded a record-breaking profit before tax of N1.27 trillion, a 107.8% jump from N609.31 billion in 2023, further emphasizing the ongoing profitability of Nigerian banks amid growing economic hardship.