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GTCO moves to raise N525bn though public offer

Lagos, March 12, 2024: Guaranty Trust Holding Company (GTCO) Plc is preparing to raise about N525 billion capital through public offer to strengthen the capital base of its subsidiary, Guaranty Trust Bank (GTB).

The decision of the bank is in response to the directive of the Central Bank of Nigeria (CBN) for banks to re-capitalise, in light of the various macro-economic factors impacting the banking sector.

According to a source, the development is in line with trends in the industry that Nigerian banks must be strategically positioned to enhance their capital reserves, either through dilutive or non-dilutive means.

“There is a very strong indication that the Bank that will soon be in the market to raise between N450 billion-to-N525 billion through public offer is Guaranty Trust Holding Company Plc. (GTCO Plc.).”

According to credible sources, the proceeds from the newly sourced capital will supplement the capital needs of its flagship banking subsidiary, GTB.

“The capital will facilitate the enhancement of the bank’s ability to book large ticket transactions, as the effect of devaluation has impacted single limits for most banks and thus, their ability to book and participate in large ticket transactions.

“We expect GTCO to make this announcement anytime from now,” said the source.

GTCO Plc recently unveiled its unaudited consolidated and separate financial statements for the period ended Sept. 30, 2023.

The group, in the results released to the Nigerian Exchange Group (NGX) and London Stock Exchange (LSE), reported profit before tax (PBT) of N433.2 billion, representing an increase of 155.2 per cent over N169.7 billion recorded in the corresponding period ended September 2022.

The group’s net loan book grew by 17.7per cent from N1.89 trillion recorded as at December 2022 to N2.22 trillion in September 2023, while deposit liabilities increased by 37.9 per cent from N4.61 trillion in December 2022 to N6.36 trillion in September 2023.

GTCO Plc consists of other non-banking businesses, including payment, funds, management, and pension funds management businesses in its ecosystem.

GTCO

GTCO posts N214bn as pretax profit in 2022

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Guaranty Trust Holding Company Plc (GTCO) on Friday announced a profit before tax of N214.2 billion in its Audited Consolidated and Separate Financial Statements for the year ended, Dec. 31 2022.

The decrease in profit before tax, according to results made available to the Nigerian Exchange Group (NGX) and London Stock Exchange (LSE), represented 3.3 per cent dip from N221.5 billion posted in the corresponding year ended, December 2021.

It, however, attributed the decrease in PBT to N35.6 billion impairment recognised on Ghanaian sovereign securities.

The Group’s loan book (net) increased by 4.6 per cent from N1.80 trillion as at December 2021 to N1.89 trillion in December 2022, while deposit liabilities grew by 11.6 per cent from N4.13 trillion to N4.61 trillion during the same period.

The Group’s balance sheet remains well-structured and resilient with total assets and shareholders’ funds closing at N6.45 trillion and N931.1 billion, respectively.

Capital Adequacy Ratio (CAR) remained strong, closing at 24.1 per cent.

Similarly, asset quality was sustained as IFRS 9 Stage 3 Loans ratio; non-profit loans (NPLs) improved to 5.2 per cent in December 2022 from six per cent in December 202.

However, Cost of Risk (COR) inched up marginally to 0.6 per cent in financial year, 2022 from 0.5 per cent in December 2021.

Commenting on the results, the Group Chief Executive Officer(CEO) of Guaranty Trust Holding Company Plc (GTCO Plc), Mr Segun Agbaje, said; “Our ability to successfully navigate the peculiar challenges in the different markets where we operate.

“This underscores our strong business fundamentals and unwavering commitment to sound business strategies.

“Despite the varying challenges and headwinds that weighed on growth in 2022, we were determined to deliver a decent performance and scale effectively to strengthen our competitive edge and drive long-term growth.”

He further stated  that 2022 was quite significant for the Group being the first year after its corporate restructuring into a financial holding company in August 2021.

“Today, across our Banking, Payment, Funds Management, and Pension businesses, we have successfully built a robust ecosystem with immense potential to deepen our addressable market and create more value for all our stakeholders.

“We will continue to prioritise innovation, service excellence, and execute seamlessly towards achieving our vision of leading financial services in Africa, ” the CEO said.

Overall, the Group continues to post one of the best metrics in the Nigerian Financial Services industry in terms of key financial ratios i.e., Pre-Tax Return on Equity (ROAE) of 23.6 per cent, Pre-Tax Return on Assets (ROAA) of 3.6 per cent, Full Impact Capital Adequacy Ratio (CAR) of 24.1 per cent and Cost to Income ratio of 48 per cent.

GTCO is a financial services group with banking operations in Nigeria, West Africa, East Africa, United Kingdom alongside new businesses in Payment, Funds Management and Pension Fund Administration.

GTCO

GTCO shareholders endorse N3 dividend payment

Shareholders of Guaranty Trust Holding Company (GTCO) on Friday unanimously endorsed the payment of a total dividend of N3 per share for the financial year ended Dec. 31, 2021.

The shareholders gave the endorsement at the company’s 1st Annual General Meeting (AGM) in Lagos.

The bank had proposed a final dividend of N2.70 per unit of ordinary share held by shareholders in addition to the interim dividend of 30 kobo interim dividend paid in June.

This brings the total dividend for the 2021 financial year to N3 per unit of ordinary share.

The Shareholders commended the board for the transition into a holding company and the financial performance achieved during the period under review despite the tough operating environment.

The Patron, Nigeria Shareholders Solidarity Association (NSSA), Mr Timothy Adesiyan, who spoke on behalf of the shareholders, appreciated the progress made by the bank to transit to a holding company.

He said the shareholders anticipated a brighter future from the company going by the good corporate governance principle with which it was being run.

Mr Boniface Okezie, Chairman, Progressive Shareholders Association of Nigeria, commended the Board of GTCO for being proactive in becoming a holding company.

The Chairman of GTCO, Mr Hezekiah Oyinlola, described 2021 as a pivotal year in the corporate history of the company after years of revision and planning.

“We successfully reorganised into a holding company to harness the potential within our operating environment and consolidate our position as a leading financial services provider in Africa,’’ he said.

He said the company’s progress was a product of its drive to diversify its income streams and ensure long-term value creation for all stakeholders.

Oyinlola expressed complete confidence in the ability of the leadership team to unlock new and exciting opportunities that would unleash the potential of the company’s diversification for long-term growth and sustainable returns.

“When I look at the future-proofing of every part of our organisation, from our talent base to our business models and digital capabilities, I am reminded of just how forward-thinking our management team continues to be,’’ he said.

Oyinlola also expressed joy at the new holding company’s structure, adding that there were immense opportunities opened by its strategic investments in building up diverse lines of business

He added that the future of financial services belonged to the institutions that would seamlessly integrate the full range of cutting-edge solutions in a people-centric digitally enabled ecosystem.

Mr Segun Agbaje, the Group Chief Executive Officer (CEO) of GTCO, said the company started 2021 with its corporate reorganisation and finished the year more robust and dynamic to consolidate its lead across the ever-extending breadth of financial services.

“Following the shareholders’ approval of our transition to a holding company structure in December 2020, we worked with relevant stakeholders to ensure a smooth transition.

”We also had the best people and the right structures to drive our vision of becoming Africa’s leading financial services groups,’’ Agbaje said.

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GTCO acquires 100% stake in wealth management coy

Guaranty Trust Holding Company Plc (GTCO Plc) has announced the completion of acquisition of 100 per cent shares in Investment One Funds Management Ltd., a wealth management company.

This is contained in a notice singed Erhi Obebeduo for GTCO sent to the Nigerian Exchange Ltd. on Monday in Lagos.

Mr Segun Agbaje, Group Chief Executive Officer of GTCO Plc, said in the notice: “We are excited about our foray into the wealth management space.

“It provides us with the opportunity of becoming a one-stop shop for financial services and products that will empower our customers.

“We will focus on replicating our digital-first customer-centric retail strategy to create distribution channels for wealth solutions that we will offer to both institutional and retail clients.”

He said with the acquisition, the bank had been positioned to add value to the asset management business in Nigeria and compete favorably with global wealth managers.

According to the notice, the new subsidiary will provide GTCO the platform to offer technology driven funds and investment management services designed to meet the unique investment needs of retail and corporate investors.

It added: “All regulatory approvals have been obtained for the Acquisition and commencement of operations of the Company.”