Guaranty Trust Bank (Ghana) Ltd delivered a strong financial performance in the first half of 2026, driven by growth in core banking income, stronger liquidity and substantial balance-sheet expansion, although rising non-performing loans (NPLs) point to emerging credit-quality risks.
According to the First Half 2026 Credit Assessment Report, the bank’s net operating income increased by 6.2% year-on-year (y/y) to GH¢1.08 billion, supported by higher net interest income and growth in net fee and commission income.
Profit after tax rose by 28.2% y/y to GH¢644.55 million, reflecting improved operating performance and a GH¢190.48 million reversal of modification loss on investment securities.
Core income strengthens
Net interest income grew by 7.0% y/y to GH¢694.10 million, with the report attributing the increase to improved funding efficiency as interest expense declined despite a marginal reduction in interest income.
Net fee and commission income also recorded strong growth, rising by 12.6% y/y to GH¢210.76 million.
The bank simultaneously recorded a substantial reduction in operating expenses. Total operating expenses fell by 63.55% y/y to GH¢85.12 million, from GH¢233.54 million in the first half of 2025.
The combination of stronger operating income, lower expenses and the reversal of the modification loss helped drive the significant increase in profit after tax.
Liquidity position improves
GTBank’s liquidity position also strengthened during the period, with its liquidity ratio, measured as liquid assets to total deposits, improving from 78.08% to 80.96%.
The report said the improvement represents a strong liquidity buffer capable of supporting the bank’s short-term financial obligations.
Customer deposits recorded particularly strong growth, increasing by 59.6% y/y to GH¢22.28 billion. The increase provided the bank with substantial funding to support its expanding operations.
Cash and cash equivalents also surged by 144.8% y/y to GH¢12.08 billion, further strengthening the bank’s liquidity position.
The overall balance sheet expanded significantly, with total assets increasing by 51.9% y/y to GH¢25.49 billion.
Capital remains well above regulatory floor
Despite the rapid expansion of its balance sheet, the bank maintained a strong capital position.
Its capital adequacy ratio, however, declined marginally from 34.59% to 30.61% in H1 2026.
The ratio remains substantially above the 13% regulatory minimum prescribed by the Bank of Ghana, giving the bank a significant capital buffer to absorb unexpected losses and support continued business growth.
The report therefore considers the bank to remain strongly capitalised despite the decline in the capital adequacy ratio.
Loan growth raises credit concerns
The strongest area of concern identified in the assessment was asset quality.
Loans and advances to customers increased by 43.5% y/y to GH¢5.42 billion, reflecting continued expansion in lending.
However, the rapid growth in the loan portfolio was accompanied by a rise in the bank’s NPL ratio from 1.37% to 4.31% during the period.
The report described the deterioration as moderate and noted that the NPL ratio remained relatively manageable by industry standards.
Nevertheless, the increase signals a deterioration in credit quality and highlights the need for continued monitoring of loan performance and credit risk as lending expands.
Leverage edges higher
The bank’s leverage also increased during the period.
The leverage ratio, measured by debt to total assets, rose from 0.85% to 0.88% in H1 2026, reflecting a faster pace of liabilities growth relative to assets.
Despite the increase in leverage, the assessment maintained that GTBank continues to have a sound capital position, supported by strong retained earnings and shareholders’ equity.
Strong outlook, but credit risk needs monitoring
Overall, the assessment concluded that GTBank’s financial position remains strong, with robust liquidity, a substantial capital buffer and significant growth in deposits, cash holdings, loans and total assets.
The bank’s profitability also improved considerably, supported by resilient core banking operations and improved investment-related income.
However, the rise in the NPL ratio from 1.37% to 4.31% presents a key risk that will require close monitoring, particularly given the 43.5% expansion in customer lending.
The report therefore recommends short-term fixed deposit investments with 91-day to 182-day tenors in Guaranty Trust Bank (Ghana) Ltd, while advising investors to continue monitoring developments in asset quality and credit risk.
Overall, the bank enters the second half of 2026 with strong earnings, liquidity and capital buffers, but the sustainability of its rapid loan growth and ability to contain rising credit risks will remain critical to its financial performance.
