New Tax Regime Takes Toll on GTCO, Profit Falls by 34% in Q3 2026
Guaranty Trust Holding Company Plc (GTCO), the parent company of Guaranty Trust Bank, has announced a total comprehensive income of N495 billion ($375 million) in its 2026 year-to-third quarter result, a decrease of 34% from the N750 billion achieved in the same period in 2025.
The company, in its quarterly financial statement released to the Nigerian Exchange Group Tuesday, posted a foreign operations income tax of N167 billion for the period being reported.
Though interest income rose slightly by 3% in 2026, profit before tax fell slightly by 2% from N900.8 billion to N878.9 billion as the company generated more interest expense which rose from N278.7 billion to N356 billion during the period.
The revised tax framework in Nigeria requires Nigerian companies that control foreign entities (Nigerian-Controlled Foreign Companies – NCFCs) to pay tax on their share of undistributed profits of the NCFC and comply with the 15% Global Minimum Tax (GMT) / Minimum Effective Tax Rate (METR).
The new tax regime provides that undistributed passive income from low-taxed foreign subsidiaries and affiliates should be accommodated under the Nigerian tax net to prevent base erosion.
GTCO’s total assets grew by 3.4% from N17.8 trillion to N18.4 trillion between year end 2025 and the end of the third quarter in 2026, driven largely by increase in the value of its financial assets which rose by a whooping 131% from N166.9 billion in December 2025 to N393.2 billion at the end of September. The bank increased its investment in bonds by over 171% from N50.8 billion to N137.8 billion and treasury bills by 123% from N105.3 billion to N235 billion.
