Guaranty Trust Holding Company (GTCO) Plc is gearing up to raise approximately N525 billion through a public offer, aimed at bolstering the capital base of its subsidiary, Guaranty Trust Bank (GTB). The move comes in response to the Central Bank of Nigeria’s (CBN) directive for banks to recapitalize amidst various macro-economic challenges affecting the banking sector.
According to sources familiar with the matter, GTCO Plc is set to enter the market to raise between N450 billion to N525 billion through a public offer. This strategic initiative aligns with industry trends, where Nigerian banks are actively seeking to enhance their capital reserves through various means.
The funds raised from the public offer will be channeled towards supplementing the capital requirements of GTB, GTCO’s flagship banking subsidiary. Specifically, the injected capital will enable GTB to bolster its capacity to execute large-ticket transactions, particularly in light of the impact of currency devaluation on single limits for banks, which has constrained their ability to engage in significant transactions.
“We expect GTCO to make this announcement anytime from now,” stated the source.
This development follows GTCO Plc’s recent unveiling of its unaudited consolidated and separate financial statements for the period ending September 30, 2023. The group reported a notable increase in profit before tax (PBT), soaring by 155.2% to N433.2 billion compared to N169.7 billion recorded in the corresponding period of 2022.
Additionally, the group witnessed substantial growth in its net loan book, which expanded by 17.7% to N2.22 trillion, and deposit liabilities surged by 37.9% to N6.36 trillion in September 2023, reflecting robust performance and strong fundamentals.
GTCO Plc operates a diversified business model encompassing non-banking ventures such as payment, funds management, and pension funds management businesses within its ecosystem. With the proposed capital injection, the company aims to fortify its position in the banking landscape and bolster its ability to navigate the evolving economic landscape.
