Trust Bank Plc recorded a decline in profitability for the second quarter ended June 30, 2026, even as the bank generated higher net interest income, fee income and overall operating income.

According to the bank’s unaudited financial statements, profit after tax fell by 20% to D204.88 million, compared with D257.39 million in the same period of 2025. Profit before tax also declined by 20%, from D352.58 million to D280.66 million.

The financial statements are presented in thousands of Gambian dalasi, so the figures in this article have been converted into millions where appropriate.

Operating Income Rises to D741.22 Million

Trust Bank’s interest and similar income increased marginally by 0.3% to D672.07 million, from D669.86 million a year earlier.

However, interest expenses fell significantly by 28% to D94.64 million, helping net interest income increase by 7% to D577.43 million.

The decline in funding costs was partly driven by lower interest expenses on time deposits, which fell from D42.93 million to D20.20 million. The bank also recorded no interest expense on nostro and interbank balances during the period, compared with D15.60 million in 2025.

Net fee and commission income rose by 5% to D120.59 million, while net trading income increased by 33% to D21.86 million. Other operating income also improved by 4% to D21.34 million.

These gains lifted total operating income by 7% to D741.22 million, from D690.13 million in the corresponding period of 2025.

Higher Costs Weigh on Profit

Despite the increase in operating income, the bank’s profitability was affected by a substantial rise in operating expenses.

Personnel expenses increased by 17% to D201.00 million, while depreciation and amortisation rose by 41% to D61.16 million.

Other operating expenses also climbed by 9% to D205.45 million.

Total expenses presented in the income statement increased by 36% to D460.56 million, compared with D337.55 million in the prior-year period. This increase in costs outweighed the growth in revenue and contributed to the decline in profit.

Basic and diluted earnings per share consequently fell by 20% from 64 bututs to 51 bututs.

Total Assets Reach D15 Billion

Trust Bank’s total assets increased slightly by 1% to D15.00 billion, from D14.79 billion as of June 2025.

Loans and advances to customers increased by 3% to D4.55 billion, while financial assets measured at amortised cost grew by 6% to D4.54 billion.

The bank’s financial assets at amortised cost included D3.05 billion in treasury bills and D1.48 billion in Gambia Government bonds.

Investment in other equity securities increased sharply by 58% to D339.89 million, while intangible assets rose by 287% to D122.67 million.

Cash and cash equivalents, however, declined by 7% to D4.19 billion, from D4.50 billion a year earlier.

Customer Deposits Remain Stable

Customer deposits were largely unchanged at D12.82 billion, representing a marginal decline of 0.04% from the previous year.

Savings account deposits increased from D7.23 billion to D8.12 billion, while current account balances declined to D4.43 billion from D4.80 billion.

Fixed deposits also fell significantly from D787.96 million to D261.81 million.

Total liabilities stood at D13.03 billion, up marginally by 0.2%.

Meanwhile, shareholders’ equity increased by 10% to D1.97 billion, supported by growth in statutory reserves, the credit risk reserve and the fair value reserve.

Cash Flow Comes Under Pressure

Trust Bank reported a net operating cash outflow of D1.47 billion, compared with an inflow of D2.78 billion in the same period of 2025.

The decline was mainly influenced by increased investments in financial assets and growth in loans and advances to customers.

The bank also spent D15.91 million on property and equipment during the period. After investing activities, cash and cash equivalents decreased by D1.49 billion, ending June 2026 at D4.19 billion.

Investor Takeaway

Trust Bank’s second-quarter results present a mixed picture.

The bank recorded encouraging growth in net interest income, fee income, trading income, loans and shareholders’ equity. It also benefited from a major reduction in interest expenses.

However, the improvement in operating income was not enough to offset the sharp increase in personnel, depreciation and other operating expenses. This resulted in a 20% decline in both profit after tax and earnings per share.

Investors may therefore want to monitor whether Trust Bank can control its operating costs and convert future revenue growth into stronger profitability. The decline in operating cash flow and cash balances should also be watched, although the bank maintained a stable deposit base and continued to expand its equity position.