Guaranty Trust Holding Company Plc (GTCO), helmed by Nigerian banker and business entrepreneur Segun Agbaje, received shareholder approval for a $750 million capital raising program at its third AGM since adopting the holding company form.
The intended capital will be raised through public offers, private placements, rights issues, and other means. The decision follows robust earnings growth and a regulatory push for enhanced capitalization in Nigeria’s banking sector.
Hezekiah Sola Oyinlola, Chairman of GTCO, spoke during the AGM and highlighted the business’s progress since its reorganization into a holding company structure three years ago. “We’ve successfully broadened and diversified our revenue streams, solidifying our position as a leading African financial services provider,” said Oyinlola.
He also emphasized the company’s well-structured balance sheet, which includes loans and advances, investment securities, and placements. He underlined that the Group’s total assets increased by 51.3% to N9.8 trillion ($6.88 billion) in 2023.
Oyinlola went beyond financial performance to emphasize GTCO’s commitment to social impact. “We strive to address pressing social and economic challenges through strategic initiatives and partnerships, enriching lives and fostering better outcomes across Africa,” he said.
Segun Agbaje, Group CEO, acknowledged the tough 2023 operating environment. He noted the group’s impressive performance, with a profit before tax of N609.3 billion ($427.97 million), up 184.5 percent from N214.2 billion ($150.42 million) in 2022.
Agbaje credited the achievement to outstanding growth in gross earnings, which climbed by 120 percent to N1.186 trillion ($832.34 million) in 2023, led by growth in both funded and unfunded income lines. He went on to say that the Nigerian banking activity continues to be the Group’s key source of profitability, accounting for 77.5 percent of total revenue.
GTCO’s pace continued into Q1 2024, with a phenomenal 685.9 percent year-on-year profit increase to N457.13 billion ($328.81 million) from N58.17 billion ($41.71 million), firmly cementing its position as Nigeria’s leading financial services provider.
Under Agbaje’s leadership, which owns 0.14 percent of GTCO, the company has targeted strategic expansion, supported by both its core commercial banking business and its expanding non-banking financial services section.
The capital raising initiative enables GTCO to strengthen its position as a leading African financial services provider. The money will be raised through a number of channels, including public offers, private placements, rights issues, and other transaction modalities.
