GTCO held first-half pre-tax profit just above ₦603 billion, but the result reaching each ordinary share fell appreciably. A higher tax charge and a larger weighted-average share count explain why a broadly steady headline profit produced weaker earnings per share.
The audited accounts for the six months ended 30 June 2026, filed on 28 September, show profit before tax of ₦603.03 billion, up 0.4% from ₦600.90 billion. Profit after tax fell 7.8% to ₦414.19 billion, while basic earnings per share declined to ₦11.18 from ₦13.59.
Income-tax expense rose to ₦188.85 billion from ₦151.89 billion. Calculated against pre-tax profit, that puts the effective tax charge at approximately 31.3%, compared with 25.3% a year earlier. The extra tax expense was substantially larger than the increase in pre-tax earnings.
The EPS calculation adds another layer. Profit attributable to ordinary shareholders declined to ₦408.54 billion from ₦441.29 billion, while weighted-average shares increased to approximately 36.55 billion from 32.47 billion. Consequently, EPS fell around 17.7%, a steeper decline than total after-tax profit.
That per-share view matters for owners assessing the return on their investment. A larger capital base can support future business, but the earnings generated from it must eventually compensate for the additional shares. The number to watch is the income attributable to each share over time, alongside the capital retained to support growth.
There was help from lower credit charges
GTCO’s half-year investor presentation shows net interest income rising 2.75% to ₦649.60 billion and loan-impairment charges falling 65.94% to ₦18.72 billion. Net fee and commission income declined 8.98% to ₦123.03 billion. The income mix was therefore less uniformly strong than the pre-tax total might suggest.
Lower loan charges help current earnings, but they need to be read alongside the condition of the loan book. The presentation reports non-performing loans at 4.63% of total loans, against 4.46% in June 2025. It also reports a capital-adequacy ratio of 34.86% and a liquidity ratio of 46.02%.
Those measures answer different questions. Capital and liquidity describe financial buffers; the non-performing-loan ratio and impairment expense help explain credit performance. A lower provision charge does not, by itself, establish that every measure of asset quality improved.
For the next reporting period, the useful comparison will be whether interest and fee earnings strengthen without relying on another large reduction in loan charges. Readers should also distinguish the tax expense recognised in the income statement from cash tax payments when considering cash generation.
The ₦1 dividend timetable
The dividend announcement dated 28 September sets an interim dividend of ₦1 per ordinary share, subject to appropriate withholding tax and approval. Qualification is at the close of business on 12 October; the register closes on 13 October.
For qualifying NGX shareholders who have completed e-dividend registration, electronic payment is scheduled for 20 October. London depositary-interest holders have a separate timetable: foreign holders on 3 November and local holders on or before 6 November.
A holder of 10,000 qualifying ordinary shares would therefore have a gross interim entitlement of ₦10,000, before applicable withholding tax. The cash received will depend on the deduction that applies to that holder.
Shareholders checking their entitlement should confirm their registrar and bank details through the official channels. Anyone considering a purchase close to the qualification date should verify settlement and eligibility with their broker, rather than assuming the day an order is placed is sufficient.
GTCO has also scheduled its board meeting for 27 October to consider the third-quarter accounts. The subsequent third-quarter release will give investors their next chance to assess whether earnings per share are beginning to catch up with its expanded capital base. For now, the half-year result offers substantial absolute profitability, alongside a clear reminder that pre-tax growth and shareholder-level earnings can move differently.
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