Guaranty Trust Holding Company Plc (GTCO) recorded a sharp increase in interest income between the first quarter of 2020 and the first quarter of 2026, while its banking subsidiary, Guaranty Trust Bank (GTBank), has doubled the international spending limit on its naira-denominated cards.
GTCO’s interest income climbed from N77.04 billion in Q1 2020 to N467 billion in Q1 2026, representing a 506 per cent increase.
The rise was attributed to higher interest rates, growth in earning assets and improved yields, which have strengthened interest-based earnings across the banking group.
The Q1 2026 figure also represented a 17.5 per cent increase from the N397.4 billion recorded in the same period of 2025.
Meanwhile, GTCO’s net interest income increased substantially, rising from N64.28 billion in Q1 2020 to N356.29 billion in Q1 2026.
The growth reflects changes in the operating environment for Nigerian banks since the COVID-19 pandemic, particularly the impact of high interest rates on earnings from loans, placements and fixed-income investments.
During the period under review, GTCO’s interest income from loans rose by 24.8 per cent, while interest earned from cash equivalents and placements increased by 30.5 per cent.
The group’s net loan portfolio also expanded by 1.3 per cent to N3.17 trillion.
A Lagos-based finance analyst, Dibor Akaghane, attributed part of the growth to stronger lending activity and improved banking processes.
He noted that salary earners can now access loans of up to three times their earnings in some cases, adding that such lending opportunities were less common in 2020.
At the start of the COVID-19 pandemic, the Central Bank of Nigeria (CBN) maintained the Monetary Policy Rate at 13.5 per cent in Q1 2020.
By Q1 2026, the MPR stood at 26.5 per cent, following a 50-basis-point reduction from 27.0 per cent at the CBN’s February 2026 meeting.
The elevated interest-rate environment has enabled banks to generate stronger returns from lending to individuals and businesses.
Meanwhile, GTBank has increased its quarterly international spending limit on naira cards from $20,000 to $40,000.
The new threshold makes GTBank the first among Nigeria’s recapitalised banks to announce the $40,000 quarterly limit.
Eligible customers can now use their cards for higher-value international transactions, including airline tickets, hotel reservations, school fees, medical expenses and online purchases.
GTBank had previously raised the limit from $6,000 to $20,000, following improved conditions in the foreign exchange market.
GTCO reported gross earnings of N571.42 billion in Q1 2026, while profit before tax increased marginally to N302.89 billion.
However, the group’s profit after tax declined by 15.42 per cent to N218.13 billion, largely as a result of increased tax liabilities.
