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Shareholders Authorize GTCO to Raise $750m Capital, Share N94.179BN Dividend



Shareholders Authorize GTCO to Raise $750m Capital, Share N94.179BN dividend

Shareholders of Guaranty Trust Holding Company (GTCO) Plc on Thursday at the third Annual General Meeting approved the company’s plan to establish a capital raising programme of $750 million either through public offerings, private placements, rights issues, and/or other transaction modes.

Also, the shareholders endorsed the management’s N94.179 billion dividend payouts for the year ended December 31, 2023, comprising 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, the Chairman of the company, Mr. Hezekiah Sola Oyinlola, said that after three years of reorganizing and fitting all the business verticals into a holding company structure, the group successfully made the first wave of progress in its drive to broaden and diversify its revenue streams and solidify the group’s standing as a leading financial services provider in Africa.

Oyinlola noted that in 2023 the group’s balance sheet remained well structured and distributed with loans and advances accounting for 25.4% in full-year 2023, investment securities at 25.3% in 2023 and placement 16.1% in 2023.

“The Group grew its total Assets by 51.3% to N9.8 trillion in 2023 due to increases posted on key asset lines including investment securities, cash & bank balances, loans and advances, and restricted deposits.”

He 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.

“Through strategic initiatives and partnerships, we strive to address pressing social and economic challenges, enriching lives and fostering better outcomes for people and businesses across Africa.”

The Group CEO of GTCO, Segun Agbaje stated that despite the varying challenges in the operating environment and headwinds that weighed on growth in 2023, the group delivered a strong performance posting a PBT of N609.3 billion representing a growth of 184.5% 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% to N1.186 trillion in the year under review, underpinned by the growth on funded and non-funded income lines.

He added that “our Nigerian Banking operation accounts for 77.5% of the Group’s profitability, West Africa constitutes 17.5%, East Africa contributes 2.2%, UK 1.9%, and Non-Banking Entities make up 0.9%”

Responding to questions at the end of the meeting, Agbaje said the board and management of the company are happy with the performance of the company in the 2023 financial year and promised that the company will do better in 2024 to continue with the tradition of upward trajectory already in place in the company over the years.

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