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🇳🇬 Nigeria /Economy & Trade

GTCO interest income surges 506% as dollar limit doubles

From The Punch · () English

Summarized by DistantNews. Read the original for the full story.

At a glance

News Named sources Context piece
  • Guaranty Trust Holding Company Plc (GTCO) reported a 506% surge in interest income between Q1 2020 and Q1 2026, reaching N467 billion.
  • This growth is attributed to higher interest rates, expanding earning assets, and stronger yields, with loan interest income rising 24.8% and interest on cash equivalents increasing 30.5%.
  • Concurrently, GTBank raised its customers' international spending limit on naira cards to $40,000 per quarter, doubling the previous limit.

Guaranty Trust Holding Company Plc (GTCO) has experienced a remarkable increase in its interest income, soaring over sixfold from N77.04 billion in the first quarter of 2020 to N467 billion in Q1 2026. This substantial growth represents a 506% rise, fueled by a combination of escalating interest rates, a growing base of earning assets, and improved yields across its operations.

The Q1 2026 interest income figure also marks a 17.5% increase compared to the N397.4 billion recorded in the same period of 2025. Net interest income saw a significant jump to N356.29 billion from N64.28 billion in Q1 2020. This performance reflects the evolving earnings landscape for Nigerian banks since the COVID-19 pandemic, where elevated interest rates have bolstered returns on loans, placements, and fixed-income investments.

GTCO's loan interest income grew by 24.8%, while interest earned on cash equivalents and placements saw a 30.5% increase. The group's net loan book expanded by 1.3% to N3.17 trillion. A Lagos-based finance analyst, Dibor Akaghane, noted that banks have strengthened their due diligence processes since 2020, enabling them to earn substantial revenues from interest income, a stark contrast to the lending environment in 2020.

In parallel, Guaranty Trust Bank has doubled the quarterly international spending limit on its naira cards for customers, raising it from $20,000 to $40,000. This move positions GTBank as a leader among Nigeria's recapitalized banks in offering higher foreign exchange access for international transactions, including travel, education, and online purchases. Despite a 15.42% fall in profit after tax to N218.13 billion due to higher tax liabilities, GTCO reported gross earnings of N571.42 billion in Q1 2026.

Right now, depositors who earn salaries can obtain easy loans sometimes three times their earnings from their banks. It was not so in 2020. Banks have strengthened their due diligence ever since and earned huge revenues from interest income.

— Dibor AkaghaneA finance analyst explains the improved lending environment and revenue generation for banks.
About this summary

Originally published by The Punch. Summarized and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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