GTCO’s LDR Slides to 24%, Businesses Face Credit Crunch

Guaranty Trust Holding Company recorded a Loan-to-Deposit Ratio of just 24% in Q1 2026. This was the lowest among major Nigerian banks and highlights its cautious stance on lending to the real economy. The Loan-to-Deposit Ratio compares total outstanding loans with customer deposits. It is a key measure of a bank’s liquidity and lending risk. While GTCO holds over 35% of its ₦18.75 trillion balance sheet in cash and government securities, peers like Fidelity Bank (63% LDR) and Stanbic IBTC (60.7%) are aggressively expanding credit. GTCO’s approach delivers stable yields but limits funding for businesses and consumers. With tighter bank credit, fintech firms such as Moniepoint are moving in. They use real-time merchant data to underwrite micro-loans and are drawing retail deposits. This could pressure GTCO’s deposit growth in future quarters.

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