Guaranty Trust Holding Company Plc (GTCO) has published its audited half-year results for the period ended June 30, 2025, posting a pre-tax profit of N601 billion, down significantly from the N1 trillion recorded in H1 2024.

Profit after tax came in at N449.01 billion, less than half of the N905.57 billion earned in the corresponding period last year.

The Board nevertheless approved an interim dividend of N1.00 per share, unchanged from H1 2024. Payment will go to shareholders on record as of October 7, 2025.

Earnings Profile: Shift Toward Securities

GTCO’s gross earnings remained above N1 trillion despite the fall in profits, recording N1.073 trillion in H1 2025. The main driver was interest income, which jumped 71% year-on-year to N812.36 billion, expanding its share of gross earnings to 76%, compared with 44% in H1 2024.

Within that, interest income from securities surged 44% to N375 billion, overtaking income from loans and advances, which grew 22% to N299.63 billion. Securities now account for 35% of gross earnings, compared with 27% from loans, a striking shift for a group historically seen as a loan-driven institution.

Geographically, N256 billion of interest income was earned outside Nigeria, highlighting the growing relevance of GTCO’s international operations to its overall performance.

Cost Structure and Margins

Interest expenses rose sharply by 43% year-on-year to N154 billion, largely from customer deposits, which accounted for N147 billion. Yet costs amounted to just 18% of total interest income, preserving a strong spread. This helped push net interest income to N632.24 billion, up nearly 29% from last year.

Impairment charges climbed to N54.97 billion from N47.41 billion a year earlier. The bulk came from Stage 2 loans (N58.89 billion), suggesting increased caution over credits showing early signs of stress. A modest N4.27 billion write-back on Stage 3 loans softened the impact. After provisions, net interest income rose nearly 30% to N577.67 billion, evidence of resilient risk-adjusted performance.

Non-Interest Income

GTCO generated N151.46 billion in fee and commission income, up 33% year-on-year, though with uneven contributions:

• Electronic banking income fell to N28.61 billion (down 12%).
• Commission on touch points surged 617% to N24.78 billion.
• Account maintenance fees climbed 12% to N17.58 billion.

This indicates that while digital channel fees came under pressure, traditional and point-of-service banking delivered a meaningful uplift.

Balance Sheet Strength

Customer deposits grew 19% to N11.878 trillion, accounting for 71% of total assets, which expanded 13% to N16.692 trillion. Loans and advances to customers increased 21% to N3.358 trillion, showing the bank is still expanding credit selectively. Cash and cash equivalents stood at N4.786 trillion, broadly stable.

GTCO shares have gained 63.2% year-to-date, closing at N90 per share on September 23, 2025. Investors appear focused on the group’s strong margins, balance sheet expansion, and steady dividend, rather than the sharp year-on-year earnings decline.

Analyst Outlook: What the Numbers Mean

GTCO’s results reveal a strategic pivot. The heavier reliance on securities income indicates the group may be prioritizing capital preservation and predictable yields over aggressive loan expansion amid economic uncertainties. Securities, often less risky than lending, have cushioned profitability in a challenging credit environment.

The shift, however, raises two questions. First, can GTCO maintain loan book growth at 20.5% without allowing impairment charges to escalate? The increase in Stage 2 provisions suggests early caution signs, though overall credit quality remains contained. Second, can the bank continue to generate above-market spreads when interest costs are rising at over 40% year-on-year?

On the positive side, GTCO’s N1.00 interim dividend underscores confidence in its capital buffers and future cash flow, despite lower profits. This could be interpreted as a bid to reassure investors during an earnings downcycle.

Comparatively, the group remains one of the best-capitalized banks in Nigeria, with its N90 per share valuation supported by robust asset growth and fee-based income expansion. Against peers like Zenith and Access, GTCO’s strategy of tilting toward securities and international operations could reduce earnings volatility, though at the cost of lower headline profits compared to the extraordinary H1 2024.

However, GTCO’s H1 2025 results paint a picture of a bank adapting to tighter economic and credit conditions. Profitability may have fallen by more than half, but the underlying performance — strong net interest income, disciplined cost management, stable impairments, and double-digit balance sheet growth — suggests the group remains resilient.

For investors, the key watchpoints over the next six months will be whether GTCO can sustain loan growth without asset quality deterioration, manage rising funding costs, and continue balancing securities income with core lending. If it succeeds, the stock’s strong rally could find further support, even as the broader sector grapples with macroeconomic headwinds.

Changpeng “CZ” Zhao’s $10 billion investment firm, YZi Labs formerly Binance Labs, is exploring the possibility of accepting external capital from outside investors and potentially converting into a public-facing investment fund.

This shift would mark a departure from its current family office structure, which primarily manages CZ’s personal fortune alongside funds from early Binance executives like co-founder Yi He.

The move comes amid strong investor interest and a more favorable U.S. regulatory environment under the Trump administration, including outreach from SEC Chair Paul Atkins, who requested a private demo of YZi Labs’ portfolio companies after attending their NYSE event.

Approximately 70% of YZi Labs’ holdings are in digital assets, with investments in over 230 crypto and Web3 projects, including Aptos and Polygon. The firm is expanding into AI, biotech, and robotics, building dedicated teams in these areas.

In 2022, YZi Labs briefly accepted $300 million from external backers but returned most of it to maintain independence. Now, with demand rising, head Ella Zhang indicated the firm is in early discussions but open to evolving into an externally focused vehicle for broader access.

Transitioning to a public fund could introduce stricter compliance, enhanced transparency, and diversified exposure to blockchain innovations, similar to Grayscale’s Bitcoin Trust. However, it might also limit agility in high-risk investments.

OG Labs Airdrop Goes Live And Creating Buzz on CT

The 0G Foundation behind OG Labs, a decentralized AI operating system on a modular Layer 1 blockchain has officially launched its community airdrop for the $OG token, rewarding early contributors ahead of the mainnet and token generation event (TGE).

The airdrop emphasizes decentralization by allocating power to active users, with 56% of the 1 billion total supply reserved for the community including 13% specifically for OG Labs rewards, with 20% unlocking at TGE and the rest vested over 48 months.

Selected Discord role holders, OG Kaito yappers who engaged users on the KaitoAI platform. Holders of One Gravity NFTs. Completers of social quests on platforms like Intract and Galxe are qualified for the airdrop.

Surprisingly, testnet participants are not eligible for this round—rewards for them are expected in future updates tied to mainnet activity. The project has an $88 million Ecosystem Growth Program for builders, including grants and bounties.

$OG is already listed on major exchanges like Binance, Bitget, Gate.io, MEXC, KuCoin, and BingX. Allowing external capital could democratize access to YZi Labs’ portfolio, which spans crypto, AI, biotech, and robotics. This could attract institutional and retail investors seeking exposure to high-growth sectors, particularly Web3 and blockchain.

A public-facing fund might resemble models like Grayscale’s Bitcoin Trust, offering diversified crypto exposure with regulatory oversight, potentially boosting mainstream adoption. Transitioning from a family office to a public fund would likely require stricter compliance with U.S. and global regulations, especially under the SEC’s evolving crypto policies.

This could enhance transparency but increase operational costs and limit high-risk investments. Positive regulatory signals suggest a friendlier environment, potentially easing YZi Labs’ pivot and encouraging other crypto firms to follow.

Accepting outside capital could pressure YZi Labs to prioritize stable, high-return assets over speculative bets, potentially diluting its agility in volatile markets like crypto. Expansion into AI and biotech signals diversification, reducing reliance on digital assets and positioning YZi Labs as a broader tech investor.

Increased investor interest could drive up valuations of YZi Labs’ portfolio companies (e.g., Aptos, Polygon), boosting the broader crypto market. External investors may demand more control or quicker returns, clashing with CZ’s long-term vision.

Implications of OG Labs Airdrop Going Live

Allocating 56% of $OG’s supply to the community with 13% for rewards reinforces OG Labs’ decentralized ethos, incentivizing active ccontributors like Discord users, NFT holders over passive speculators.

Excluding testnet users from this round prioritizes real engagement, potentially setting a precedent for future airdrops to focus on quality contributions. The $88 million Ecosystem Growth Program signals long-term commitment to developers, potentially making OG Labs a hub for decentralized AI innovation.

The airdrop promotes OG Labs’ modular Layer 1 blockchain for AI, which could accelerate adoption of on-chain AI solutions. Success here might validate scalable Web3 infrastructure for AI workloads.

Excluding testnet users risks alienating early adopters, though future rewards may mitigate this. The airdrop aligns with a trend of community-driven token distributions reinforcing decentralization as a core Web3 value.

Success could draw more attention to AI-blockchain convergence, spurring competition and innovation in this niche. Both developments signal growing maturity in the crypto ecosystem: YZi Labs’ potential public fund reflects institutionalization, while OG Labs’ airdrop emphasizes community-driven decentralization.