Guaranty Trust Holding Company Plc (GTCO) recorded N262.58 billion in interest income from its African and United Kingdom subsidiaries in the first half of 2026, representing about 30 per cent of the group’s total interest income.
The figure, contained in GTCO’s audited financial statements for the six months ended June 30, 2026, represents an 11.23 per cent decline from the N295.79 billion generated by its foreign operations in the corresponding period of 2025.
The decline came despite an increase in the group’s overall interest income, driven largely by stronger performance from its Nigerian operations.
Interest income from the domestic business rose to N610.81 billion in H1 2026, compared with N516.57 billion a year earlier.
Consequently, GTCO’s total interest income increased to N873.39 billion from N812.36 billion in H1 2025.
The development reduced the contribution of the group’s international operations to total interest income from about 36 per cent in the first half of 2025 to 30 per cent during the period under review.
GTCO’s international banking operations cover several African markets and the United Kingdom through Guaranty Trust Bank Limited, with ownership stakes varying across the subsidiaries.
Despite the weaker contribution from foreign operations, the holding company maintained strong profitability.
Profit before tax rose marginally to N603.03 billion from N600.90 billion, while net interest income increased to N649.60 billion from N632.24 billion.
However, profit after tax fell to N414.19 billion from N449.01 billion, largely reflecting an increase in income tax expense, which rose to N188.85 billion from N151.89 billion.
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Financial analysts say the figures point to a stronger dependence on GTCO’s Nigerian franchise for earnings growth, while the weaker foreign contribution underscores the importance of monitoring economic and interest-rate conditions across the group’s overseas markets.
An investment analyst, Seyi Adeboye, said the rise in domestic interest income suggests that Nigeria remains the principal engine of GTCO’s earnings, but cautioned that the sustainability of such growth would depend on credit quality, funding costs and the direction of interest rates.
“Foreign subsidiaries remain strategically important because they provide geographic diversification. However, the latest numbers show that the Nigerian business is currently contributing more significantly to interest-income growth,” the analyst said.
Another banking-sector analyst, Lekan Ikuseyi, said the decline in foreign interest income should be assessed alongside each subsidiary’s economic environment, currency movements and loan-market conditions rather than viewed in isolation.
GTCO’s balance sheet also expanded during the period. Total assets rose to N18.62 trillion as of June 30, 2026, from N17.76 trillion at the end of 2025, while customer deposits climbed to N13.97 trillion from N12.55 trillion.
The board proposed an interim dividend of N1 per ordinary share for the half-year period.
GTCO’s diversified presence across African markets and the UK remains a key component of its strategy, even as the latest results show Nigeria playing a more dominant role in the group’s interest-income performance.