HabariPay Limited, the fintech subsidiary of Guaranty Trust Holding Company (GTCO), reported a pre-tax profit of N4.02 billion in the first half of 2025, nearly doubling its earnings compared to the same period last year.
GTCO’s financial report for the six months ending June 30, 2025, reveals that HabariPay’s profit accounted for approximately 0.67% of the group’s total pre-tax income. This marks a significant 95% increase from the N2.07 billion recorded in H1 2024.
The surge in digital payment adoption across Nigeria-fueled by convenience, speed, and cost-effectiveness-has been a key driver behind HabariPay’s impressive growth. This performance highlights GTCO’s successful strategic pivot into fintech amid challenges in its traditional banking operations.
Revenue Growth Outpaces Rising Costs, Boosting Profitability
HabariPay’s revenue streams expanded markedly during the first half of 2025. Operating income soared by 82%, reaching N5.05 billion compared to N2.77 billion in the corresponding period of 2024.
This growth was propelled by a rise in transaction volumes and broader acceptance of HabariPay’s payment solutions, particularly among individual users and small enterprises. The expanding customer base translated into increased service fees and processing revenues.
Alongside revenue gains, operating expenses also climbed, rising from N703.3 million in H1 2024 to N1.03 billion in H1 2025. This uptick reflects HabariPay’s investments in scaling operations, enhancing infrastructure, and improving customer experience.
Despite increased spending, the company maintained strong profit margins and operational efficiency, underscoring the robustness of its business model. Notably, HabariPay benefited from the absence of loan impairments and tax charges during this period, further bolstering its net earnings.
GTCO’s Overall Profit Declines Amid FX Challenges, Yet Investor Sentiment Remains Positive
While HabariPay thrived, GTCO’s consolidated profit before tax fell by 40%, dropping from N1 trillion in H1 2024 to N600.9 billion in H1 2025.
This decline was primarily due to a steep reduction in foreign exchange gains. In 2024, GTCO recorded over N600 billion from FX revaluation, a figure that plummeted to just N26 billion in 2025, removing a significant one-off boost from last year’s results.
Despite this setback, GTCO’s long-term outlook remains strong. Its share price has climbed steadily from N29.20 in 2020 to N94.00 as of October 2025, reflecting a compound annual growth rate (CAGR) of 28%. Year-to-date, the stock has surged 64%, signaling sustained investor confidence.
HabariPay’s robust performance stands out against the backdrop of GTCO’s overall financial pressures. As traditional banking margins tighten, the fintech arm’s contribution is increasingly vital to the group’s growth trajectory.
GTCO has strategically leveraged HabariPay to penetrate Nigeria’s rapidly expanding digital payments market, which is shaped by a youthful, mobile-savvy population and government initiatives promoting a cashless economy.
HabariPay’s rapid expansion indicates that GTCO is capitalizing on this digital shift. By operating with the agility and innovation typical of fintech startups, HabariPay enables GTCO to compete effectively with emerging digital-first companies while leveraging its established brand trust.
Related: GTCO posts N2.78 trillion in debit card transactions in H1 2025
Furthermore, HabariPay’s streamlined structure allows it to remain profitable without the heavy overheads common in traditional banking. With no loan defaults, reduced regulatory burdens, and a growing user base, the fintech is becoming a dependable revenue pillar for GTCO.
Fintech Landscape and Future Outlook for HabariPay
Nigeria’s fintech ecosystem is flourishing, attracting over $2 billion in foreign capital in 2024 and emerging as one of Africa’s premier technology sectors. This momentum is driven by widespread smartphone penetration, increasing digital banking adoption, and a rising demand for seamless payment solutions.
HabariPay’s profitability surge mirrors a wider trend where banks are harnessing fintech subsidiaries to rival independent digital payment firms such as Flutterwave, Paystack, and OPay. This demonstrates that established financial institutions can successfully innovate and compete in the digital payments arena.
Looking ahead, HabariPay will face challenges including rising operational costs and intensifying competition. Sustaining efficiency and maintaining customer trust will be critical for the fintech to solidify its role as a key growth engine for GTCO in the coming years.
The fintech’s success also reflects a broader shift in Nigeria’s banking sector, where traditional banks are no longer viewing fintech companies as competitors but rather as essential partners or extensions to remain relevant in a fast-evolving market.
GTCO’s foresight in launching HabariPay years ago is now paying dividends. The fintech’s growth provides a buffer against volatility in the core banking segment by delivering a steady stream of digital revenue.
As Nigeria’s digital finance adoption accelerates, more individuals and businesses will turn to platforms that simplify and expedite payments. For GTCO, this evolution not only opens new income avenues but also lays the foundation for sustainable success in a technology-driven economy.