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.