GTBank’s Profit Falls By ₦25.7bn As Lending Contracts Despite Growing Deposits

GUARANTY Trust Bank Limited recorded a 5.1 per cent decline in profit after tax for the nine months ended 30th September 2026, amid a contraction in its loan portfolio and rising funding costs across its parent company, Guaranty Trust Holding Company Plc.

The Nigerian banking subsidiary posted a profit after tax of ₦480.89 billion, compared with ₦506.63 billion recorded in the corresponding period of 2025, representing a decline of approximately ₦25.74 billion.

The development comes despite growth in customer deposits, raising questions about the bank’s lending activities and its ability to translate deposit mobilisation into increased earnings.

The figures, contained in the group’s nine-month financial results, also showed that GTCO’s net loans and advances declined by 4.1 per cent, from ₦3.13 trillion at the end of December 2025 to approximately ₦3 trillion as of September 30, 2026.

The contraction occurred even as the group’s deposit liabilities increased by 8.6 per cent to ₦13.98 trillion.

The divergence between deposit growth and lending performance suggests that the financial group is expanding its deposit base faster than its loan portfolio.

Although the group has attributed its lending approach to disciplined risk-asset creation, the figures raise questions about the extent to which the bank is deploying its growing deposit base to support businesses and individuals.

Further examination of the financial results showed that rising funding costs also weighed on the group’s earnings.

GTCO’s interest expenses increased by 27.7 per cent, from ₦278.73 billion in the corresponding period of 2025 to ₦356 billion in the first nine months of 2026.

By comparison, interest income grew by approximately five per cent to ₦1.29 trillion.

Consequently, net interest income declined to ₦935.88 billion from ₦952.14 billion recorded in the corresponding period of the previous year.

The development indicates that the increase in the cost of funds outpaced the growth in interest income, putting pressure on the group’s earnings from its core banking activities.

The holding company’s earnings per share also declined from ₦20.71 to ₦16.58, although the group attributed part of the reduction to an increase in its outstanding shares following capital-raising exercises in 2024 and 2025.

GTBank Nigeria’s profit after tax of ₦480.89 billion accounted for a substantial proportion of GTCO’s overall profit after tax of ₦614.57 billion during the nine-month period, underscoring the importance of the Nigerian banking operation to the group’s earnings.

Meanwhile, GTCO’s investment securities increased to approximately ₦5.94 trillion from ₦5.54 trillion at the end of December 2025, indicating an expansion in its holdings of financial investments during the period.

The development has further drawn attention to the group’s asset allocation strategy, particularly against the backdrop of declining lending and growing deposits.

However, GTCO maintained that its financial position remained strong, citing improvements in asset quality and its capital position.

The group reported a capital adequacy ratio of 34.2 per cent, a non-performing Stage 3 loans ratio of four per cent and a cost of risk of 0.9 per cent.

It also reported total assets of ₦18.37 trillion and deposit liabilities of ₦13.98 trillion.

The financial results suggest that although GTCO continues to maintain substantial capital buffers and a growing deposit base, declining profitability at its Nigerian banking subsidiary and rising funding costs remain important developments for investors and other stakeholders to monitor.

The figures also place renewed attention on the bank’s lending strategy and its ability to sustain earnings growth amid changing funding conditions and operating costs.