Competition from fintech disruptors, once seen as an existential challenge for traditional banks, is now being viewed through a different lens at Guaranty Trust Holding Company (GTCO), where management says it has successfully built internal digital capacity strong enough to compete head-to-head.
That shift in tone was reinforced in Lagos during the group’s Annual General Meeting, where GTCO Chief Executive Officer Segun Agbaje pointed to the performance of its payments arm, HabariPay, as evidence that the group has effectively neutralised early fears around fintech disruption.
In an interview held on the margins of the AGM, Agbaje described GTCO’s approach to fintech competition as a deliberate shift from defence to attack.
“Everybody was really nervous about fintech, so we built our own speed boat. That’s Habari,” Agbaje said.
“Habari is competing very, very effectively and it means we are not scared about the threat of fintechs any longer. We have a very strong engine to compete with them.”
His comments reflect a broader repositioning of GTCO’s business model, where digital payments and non-bank financial services are increasingly central rather than peripheral.
Strong earnings backing the confidence
The confidence comes on the back of a strong financial showing in 2025, which Agbaje described as one of the group’s most stable years in recent memory. According to him, earnings quality improved significantly and supported stronger shareholder returns.
"For us, it’s been a really good year. 2025 quality of earnings was really good. It has allowed us to pay a healthy dividend. All indices are right. We made up the revaluation gains of 2024. Core business is strong,” he said.
He also noted that the group’s performance validated earlier strategic decisions, especially at a time when market sentiment toward the stock was cautious.
“I remember we were trying to get people to buy this stock at 44 Naira and we’re trying to convince them. I think what has happened is vindication for us,” he added.
Digital subsidiaries becoming core growth engines
Beyond traditional banking, GTCO’s ecosystem strategy is increasingly anchored on three high-performing subsidiaries: fintech, asset management, and pensions.
Among them, HabariPay emerged as the standout performer in 2025, delivering a profit of N9.7 billion and cementing its role as the group’s fastest-growing non-bank business.
Other subsidiaries also posted strong results. Guaranty Trust Fund Managers recorded N9 billion in profit, while Guaranty Trust Pension Managers delivered N1.7 billion in earnings for the year.
Agbaje described these units not as separate ventures but as integrated components of a broader financial ecosystem designed to keep value within the group.
“These are our little babies and it’s working perfectly for us,” he said.
“GTBank, if you look at it like a factory, is a low cost operator. So where we’re losing money to yield in the past to other people, we’re now losing it to ourselves within our ecosystem.”
International diversification and local dominance
While GTCO continues to expand its footprint outside Nigeria, domestic operations still dominate its earnings base. In 2025, Nigeria accounted for 73% of group profit, while international operations contributed 27%.
Ghana was highlighted as one of the strongest-performing markets outside Nigeria, reinforcing the group’s gradual regional diversification strategy.
“We’re diversifying the earnings from outside of Nigeria, but Nigeria is still the mothership,” Agbaje said.
“Ultimately, the diversification gives us strength. It’ll give us a competitive edge and we’re hoping to break the country’s sovereign risk rating by diversifying the earnings strong enough outside one geographical location.”
Cautious expansion in pensions and steady dividend focus
On the pensions business, Agbaje stressed that growth would remain deliberate due to the long-term and regulated nature of the sector.
“It’s a fee-based business, fixed income, so you have to grow carefully. Can’t do crazy acquisitions because the ROIs will work, but it’s a three-year journey for us,” he explained.
He also reaffirmed GTCO’s commitment to sustaining dividend payouts, particularly following its N500 billion capital raise, noting the importance of consistent returns to retail investors.
“Anytime you go out and collect people’s monies, you have a sense of responsibility,” he said.
“We have a lot of retail investors, and retail investors rely on dividends for day-to-day life, for expenses, for school fees, for things.”
HabariPay’s sharp growth underscores fintech shift
The strength of HabariPay’s 2025 performance further highlights GTCO’s internal fintech momentum. Profit after tax surged by 155% from N3.8 billion in 2024 to N9.7 billion in 2025.
Operating income also jumped by 122%, rising from N5.8 billion to N12.9 billion within the same period. Although operating expenses doubled to N3.2 billion as expansion accelerated, the business maintained efficiency, recording no loan impairment charges or tax expenses during the year.
Taken together, the results point to a clear structural shift within GTCO’s earnings model, where digital payments and financial services subsidiaries are becoming increasingly central to growth, rather than experimental add-ons.