- Trust Bank Profit Falls 20.40% to D204.88 million as Operating Costs Surge
Trust Bank Plc reported a 20.40% decline in profit to D204.88 million for the six months ended June 2026, as a sharp increase in operating expenses outweighed growth in net interest income, fees and trading income.
The bank’s profit fell from D257.39 million in the corresponding period of 2025, while profit before income tax declined 20.40% to D280.66 million from D352.58 million.
The contraction came despite operating income increasing 7.40% to D741.22 million from D690.13 million, highlighting the pressure generated by the bank’s rising cost base.
Net interest income remained the largest contributor to earnings and increased 7.23% to D577.43 million from D538.49 million.
Interest and similar income was broadly flat at D672.07 million compared with D669.86 million a year earlier, but interest expense declined significantly by 27.96% to D94.64 million from D131.38 million.
The lower funding cost helped protect the bank’s interest margin even though the underlying interest-income growth was limited.
The composition of interest income also shifted.
Interest earned on commercial advances fell 13.37% to D327.15 million from D377.62 million, while income from Treasury bills and bonds increased 14.69% to D316.68 million from D276.11 million.
Interest earned from nostro and interbank placements rose to D28.25 million from D16.14 million.
On the funding side, interest paid on time deposits more than halved to D20.20 million from D42.93 million, while the bank recorded no interest expense on nostro and interbank balances compared with D15.60 million in 2025. Interest on savings accounts edged higher to D74.44 million from D72.85 million.
Non-interest income also strengthened.
Net fee and commission income increased 5.06% to D120.59 million, while net trading income climbed 33.04% to D21.86 million. Other operating income increased modestly to D21.34 million.
Those gains, however, were overwhelmed by expenditure.
Combined operating expenses rose 36.44% to D460.56 million from D337.55 million. Personnel expenses increased 17.42% to D201.00 million, depreciation and amortisation jumped 40.51% to D61.16 million, while other expenses climbed 9.49% to D205.45 million.
The increase in costs materially weakened the conversion of revenue into profit.
Basic and diluted earnings per share fell to 51 bututs from 64 bututs, broadly reflecting the decline in after-tax earnings.
Trust Bank nevertheless expanded its balance sheet.
Total assets increased 1.43% to D15.00 billion from D14.79 billion. Loans and advances to customers rose 2.80% to D4.55 billion, while financial assets measured at amortised cost increased 6.20% to D4.54 billion.
Investment in other equity securities jumped 57.88% to D339.89 million, although cash and cash equivalents declined 7.05% to D4.19 billion.
Customer deposits were virtually unchanged at D12.82 billion, compared with D12.82 billion a year earlier, declining marginally by 0.04%.
Savings deposits increased to D8.12 billion from D7.23 billion, while current-account deposits declined to D4.43 billion from D4.80 billion. Fixed deposits fell sharply to D261.81 million from D787.96 million.
The loan book also warrants closer attention.
Gross loans, overdrafts and the NAWEC bond amounted to D4.68 billion before impairments. The allowance for impairment increased 72.90% to D136.68 million from D79.06 million.
Within the portfolio, conventional loans and advances declined to D2.07 billion from D2.22 billion, while overdrafts increased 15.83% to D2.47 billion from D2.13 billion.
Despite weaker profitability, total shareholder equity increased 10.11% to D1.97 billion.
The credit risk reserve rose nearly fivefold to D126.60 million from D26.69 million, while statutory reserves increased to D375.61 million from D199.99 million. Income surplus, however, fell 17.88% to D546.96 million.
Cash-flow performance weakened substantially.
Trust Bank recorded D1.47 billion in net cash used in operating activities, reversing D2.78 billion generated in the corresponding period of 2025.
The deterioration reflected, among other movements, D1.14 billion absorbed by financial assets at amortised cost and D837.46 million used in expanding loans and advances. Customer deposits contributed D304.55 million, considerably below the D2.24 billion increase recorded a year earlier.
The results therefore show a bank whose underlying income streams remain relatively resilient but whose profitability has been squeezed by rapidly increasing operating costs.
Net interest income, fee income and trading revenue all improved, while the balance sheet and equity base expanded. Yet the 36.44% increase in operating expenses more than offset those gains.
For Trust Bank, the second half of 2026 will therefore depend heavily on cost control and the quality of its expanding credit portfolio, particularly as impairment allowances increase and deposit growth remains essentially flat.
