Fintech Arm Drives Strong Performance Amidst Holding Company Challenges
HabariPay Limited, the fintech subsidiary of Guaranty Trust Holding Company (GTCO), has reported a substantial increase in its financial performance, recording a profit before tax of N4.02 billion in the first half of 2025. This figure represents a near doubling of its profit from the same period in the previous year, highlighting a robust growth trajectory for the digital payments arm.
According to GTCO’s financial statement for the period ending June 30, 2025, HabariPay’s profit before tax constituted approximately 0.67% of the group’s total pre-tax earnings. In the first half of 2024, HabariPay generated N2.07 billion, indicating an impressive 95% year-on-year growth. This surge is attributed to the increasing adoption of digital payments in Nigeria, a trend propelled by the convenience, efficiency, and cost-saving benefits offered by such services. The performance of HabariPay signals a successful diversification into the fintech sector for GTCO, particularly as its traditional banking operations encounter certain challenges.
Revenue Streams and Operational Costs See Significant Increases
HabariPay's revenue streams experienced substantial growth during the first half of the year. Its operating income rose by 82%, reaching N5.05 billion from N2.77 billion in the comparable period of 2024. This growth was primarily fueled by an increase in transaction volumes and the wider adoption of its payment solutions, particularly among individual users and small business platforms. The expansion of its customer base across HabariPay’s platforms directly translated into higher service revenues and processing fees.
Alongside its income growth, HabariPay also saw an increase in its expenses. Operating costs climbed from N703.3 million in H1 2024 to N1.03 billion in H1 2025. This rise in expenditure is linked to HabariPay’s strategic investments in operational expansion, the enhancement of its infrastructure, and efforts to improve customer experience. Despite these investments, the company managed to maintain cost-efficiency and strong profit margins, underscoring the viability of its business model. Furthermore, HabariPay’s profitability was bolstered by the absence of loan losses or taxation charges during the period.
GTCO's Overall Profit Declines, Yet Investor Confidence Remains High
While HabariPay demonstrated strong financial health, its parent company, GTCO, faced a more challenging financial period. The group’s profit before tax saw a decline of 40%, falling from N1 trillion in H1 2024 to N600.9 billion in H1 2025. This decrease was largely attributed to a significant drop in foreign exchange gains. In 2024, GTCO had benefited considerably from FX revaluation, booking over N600 billion in gains. In contrast, these gains were reduced to just N26 billion in 2025, removing a substantial factor that had inflated the previous year's financial results.
Despite this recent downturn, GTCO continues to exhibit long-term stability. The company's share price has shown consistent growth, rising from N29.20 in 2020 to N94.00 by October 2025, which represents a compound annual growth rate (CAGR) of 28%. With a year-to-date increase of 64%, investor confidence in GTCO’s future prospects remains robust.
The strong performance of HabariPay becomes particularly significant when viewed within the context of GTCO’s overall financial performance. As the parent company navigates tighter profit margins in its traditional banking operations, the contribution of its fintech subsidiary highlights a key element of the group’s future growth strategy.
GTCO has deliberately focused on using HabariPay to expand its presence in the digital payments sector, capitalizing on Nigeria’s rapidly expanding fintech market. This market is increasingly shaped by younger demographics, a preference for mobile-first transactions, and governmental support for a cashless economy.
HabariPay’s growth suggests that GTCO is successfully adapting to this market shift. By developing a fintech entity that operates with the agility and flexibility characteristic of independent startups, GTCO is positioning itself to compete effectively with newer, digital-first players while simultaneously leveraging its established customer trust.
Moreover, the company's lean operational structure enables it to maintain profitability without incurring the substantial costs typically associated with traditional banking operations. With no recorded loan losses, reduced regulatory overhead, and an expanding user base, HabariPay is emerging as a vital source of stable income for GTCO.
HabariPay Navigates Fintech Competition and Future Outlook
Nigeria's fintech sector is experiencing a significant boom, attracting over $2 billion in foreign investment in 2024 and establishing itself as a leading technology industry within Africa. This growth is propelled by widespread smartphone penetration, increasing adoption of digital banking services, and a strong demand for efficient payment solutions.
HabariPay’s enhanced profitability reflects a broader trend where established banks are utilizing their fintech subsidiaries to compete with independent digital payment startups such as Flutterwave, Paystack, and OPay. This demonstrates that traditional financial institutions can still achieve success in this dynamic market.
The sustained growth of HabariPay will be a key test in the coming months, especially as it faces rising operational costs and intensified competition. Maintaining operational efficiency and user trust will be paramount for the company to potentially become a significant growth engine for GTCO in the coming years.
The strong performance of this fintech arm illustrates a larger narrative about how Nigeria's major banks are adapting to the digital economy. Instead of viewing fintechs solely as competitors, many are now establishing or acquiring their own digital divisions to remain relevant in a rapidly evolving market landscape.
GTCO’s strategic decision to establish HabariPay several years ago is now proving to be highly beneficial. The fintech's success allows GTCO to mitigate some of the financial volatility experienced in its core banking business through stable income generated from digital operations.
As Nigeria continues its embrace of digital finance, an increasing number of individuals and businesses will rely on platforms that facilitate easier and faster payment processes. For GTCO, this ongoing shift represents not only a new avenue for revenue generation but also a critical pathway toward long-term sustainability in an increasingly technology-driven economy.