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N51bn Windfall Tax Impacts GTCO’s Net Income Growth

April 15, 2025
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Guaranty Trust Holding Company (GTCO) reported N2.14 trillion gross earnings in 2024, an 81.07 per cent increase from the N1.18 trillion generated in 2023.

According to an analysis of the financial institution’s consolidated and separate income statements for the year ending December 31, 2024, GTCO’s interest income, generated from loans and other financial assets, also grew by 143.62 per cent from N550.75 billion to N1.34 trillion.

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The surge was, however, overshadowed by the 148.30 per cent in interest expense, as GTCO paid N283.21 billion to retain depositors and remain competitive in the banking industry, up from the N114.05 billion paid on deposits the previous year.

But this did not stop the net interest income from jumping 142.40 percent to reach N1.05 trillion last year, a significant increase from the N436.69 billion registered in 2023.

GTCO extended the triple-digit growth to its profit before tax (PBT), which stood at N1.26 trillion at the end of 2024, up from the N609.30 billion reported in the previous year – indicating a 107.81 percent increase.

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However, with the implementation of the windfall tax, the company saw its tax burden increase significantly by 256.68 per cent last year compared to the 54.85 percent growth in income tax reported in 2023.

GTCO’s income tax rose from N69.65 billion to N248.44 billion within the reviewed period, with windfall tax accounting for N51.24 billion, which would have gone into the company’s net income had the federal government allowed banks to keep all their foreign exchange (FX) gains.

As a result, net income growth slowed to 88.60 percent in 2024, compared to the 218.99 percent growth recorded during the previous year.

GTCO closed the year with N1.01 trillion profit after tax (PAT) against the N539.65 billion net income registered in 2023.

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