Guaranty Trust Holding Company Plc (GTCO), led by Nigerian banker Segun Agbaje, reported a softer start to its 2026 financial year, with first-quarter profit easing under the weight of valuation losses, higher taxes, and rising non-cash charges, even as lending activity held firm.

For the three months ended March 31, 2026, profit fell to N218.1 billion ($158.6 million), compared with N257.9 billion ($187.6 million) in the same period a year earlier. The decline was driven largely by an unrealized fair value loss of N40.4 billion ($29.4 million) on financial instruments, alongside higher operating costs.

GTCO’s 28th Annual General Meeting in Lagos, Nigeria.

Depreciation and tax expenses rise

Depreciation and amortization expenses also rose to N26.3 billion ($19.1 million), reflecting continued investment in infrastructure and systems. A higher tax charge further weighed on earnings, as income tax doubled to N84.76 billion ($61.6 million) from N42.3 billion ($30.7 million) a year earlier, reducing the impact of otherwise steady growth in core revenue lines.

Even so, underlying income trends pointed in a different direction. Net interest income after loan impairment charges rose to N348.3 billion ($253.3 million), up from N304.7 billion ($221.6 million), supported by improved earnings on the bank’s loan book. Fee and commission income also edged higher to N69.79 billion ($50.75 million), compared with N67.12 billion ($48.8 million), reflecting steady customer activity across payments and related services.

Balance sheet indicators showed continued expansion. Cash and cash equivalents increased to N6.63 trillion ($4.82 billion) as of March 31, 2026, from N5.46 trillion ($3.94 billion) at the end of 2025. Customer deposits rose to N13.2 trillion ($9.6 billion), while loans and advances to customers inched up to N3.17 trillion ($2.3 billion) from N3.13 trillion ($2.26 billion), signaling cautious but ongoing lending growth.

Segun Agbaje, CEO of GTCO, speaking during the bank’s 28th Annual General Meeting.

GTCO’s retained earnings reach $1.38 billion

GTCO, headquartered in Lagos, has expanded into a regional financial group with operations across West and East Africa as well as the United Kingdom. The lender employs more than 12,000 people and provides services spanning retail banking, corporate finance, and digital payments. Agbaje, who holds a 0.114 percent stake in the lender, continues to oversee the GTCO’s transition into a diversified financial services giant with a broader geographic footprint.

Despite the dip in quarterly profit, the group’s financial position strengthened. Total assets rose to N18.75 trillion ($13.63 billion) from N17.76 trillion ($12.91 billion) at the end of 2025. Total equity increased to N3.62 trillion ($2.63 billion), while retained earnings climbed to N1.91 trillion ($1.38 billion), suggesting continued internal capital growth even as short-term earnings came under pressure.