GTCO Shareholders Approve $750m Capital Raising, N94.179bn Dividend

Shareholders of Guaranty Trust Holding Company (GTCO) Plc have approved the company’s plan to establish a capital raising programme of $750 million.

The shareholders gave their approval at the company’s third Annual General Meeting held in Lagos. This is as they endorsed the management’s N94.179 billion dividend payouts for the year ended December 31, 2023, comprises of N2.70 per share final dividend and 50 kobo interim dividend paid last year, making a total dividend paid for the 2023 financial year to N3.20 per share.

Speaking at the meeting, chairman of the company, Mr. Hezekiah Sola Oyinlola, said, “After three years of reorganising and fitting all the business verticals into a holding company structure, we successfully made the first wave of progress in our drive to broaden and diversify our revenue streams and solidify our standing as a leading financial services provider in Africa.”

Oyinlola added that “beyond the bottom-line, we understand that building an enduring institution is also about the underlying drive to make a sustainable impact in the communities we serve and operate in.”

The group CEO of GTCO, Segun Agbaje stated that, in spite of the varying challenges in the operating environment and headwinds that weighed on growth in 2023, the Group delivered a strong performance posting a profit before tax of N609.3 billion representing a growth of 184.5 per cent from N214.2 billion achieved in full year 2022.

According to him, this result was on the back of impressive growth in gross earnings, increasing by 120 per cent to N1.186 trillion in the year under review.

“Our Nigerian Banking operation accounts for 77.5 per cent of the Group’s profitability, West Africa constitutes 17.5 per cent, East Africa contributes 2.2 per cent, UK 1.9 per cent, and Non-banking Entities make up 0.9 per cent,”

He further said “we have a tradition of increasing dividends every year, so I can say categorically that in 2024, the dividend will be up. Already, profit is up in the first quarter of 2024, we have posted N509.3 billion, I think this is an indication that we will have a bigger dividend in 2024.”

Shareholders commended the company’s 2023 performance. The national coordinator of Progressive Shareholders Association, Okezie Boniface, said the performance was excellent, with growth in its earnings per share of N19.70 and the company paying N3.20 per share, saying that the group’s diversification is paying off.

On the capital raising, Okezie anticipated a successful exercise for the company due to their good track record of paying dividends.

Also, the national coordinator of Independent Shareholders Association of Nigeria (ISAN), Moses Ibrude noted that the company performance in the year under review was impressive, considering the situation of the country.

He said GTCO is at the forefront of good corporate governance, appealing to GTCO to continue to run the business well in order to deliver good returns to the shareholders. On the recapitalisation, Ibrude urged the minority shareholders to take up their rights in supporting the company growth.