Guaranty Trust Holding Company Plc (GTCO) has outlined a clear path to becoming the first Nigerian financial institution to achieve $1 billion profit as the group set to launch a N400.5 billion public offer.
GTCO has received approval of the Nigerian Exchange (NGX) for a public offer of 9.0 billion ordinary shares of 50 kobo each at N44.50 per share.
At the “facts behind the offer presentation” at the NGX, Group Managing Director, Guaranty Trust Holding Company Plc (GTCO), Mr. Segun Agbaje said the new minimum capital announcement by the Central Bank of Nigeria (CBN) coincided with the group’s strategy as the group had planned to raise capital to drive growth.
He said GTCO would become the first financial institution to reach a $1 billion profit with new investments across banking and non-banking businesses, in Nigeria and beyond.
“We want a market capitalization that Nigeria will be proud of. There is no Nigerian company that has ever made a $1 billion in profit and we are going to be the first to achieve it,” Agbaje said.
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He said the decision of the CBN on the new minimum capital was good for the banking industry and the economy, noting that recapitalisation would position banks to support national economic agenda of a $1 trillion economy.
“Banks need equity. We have just gone through about a 200 per cent devaluation of the naira. The balance sheets of banks have shrunk and as the ability to do business has reduced.
“With the Federal Government also saying he wants a $1 trillion economy; you are not going to achieve a $1 trillion economy at this size of banks if you do not raise capital.
“So, we are not only raising capital because the central bank asked us to do it. You might not believe me, but we had decided before that we were going to raise capital and that we were going to pivot this organization for transformational growth.
“We’re going to grow the business in Nigeria and outside Nigeria. We’re going to grow the non-banking businesses. We’re going to improve our technology and when people ask me what my job description is today, I say I’m in the business of creating great customer experiences.
“It is impossible to do that without big technology. When we do food and drink, it is about our customer experience. When we do fashion, it is about our customer experience and when we do banking, it is about our customer experience, and you cannot do that without the right technology platform.
“So irrespective of whether the central bank asked for capital raising or not, we would have raised capital,” Agbaje said.
He highlighted that going forward, GTCO plans to deepen its Nigerian business with bigger and stronger exposures to critical sectors of the economy.
“Outside Nigeria, we are planning to invest in Senegal, because we think business is good there. We are going to grow in Cote d’Ivoire, Ghana, and Kenya,” Agbaje said.
He added that GTCO would go into an acquisition with a new capital, adding that the financial institution is going to change its core-banking software across its region.
Group Chairman, Nigerian Exchange Group (NGX Group) Plc, Alh. Umaru Kwairanga described GTCO as a beacon of excellence in the capital market, recognised as a leading issuer and one of Nigeria’s premier financial institutions.
He said that over the years, GTCO through its GTBank era to the HoldCo era has consistently demonstrated remarkable resilience, innovation, and leadership in the financial sector.
He assured that the NGX Group is committed to supporting GTCO and other financial institutions in their recapitalisation efforts.
“Our recent initiatives, such as the launch of the NGX e-platform, underscore our dedication to enhancing market efficiency and accessibility.
“Today’s presentation is a clear indication of GTCO’s proactive approach to engaging with the market and ensuring transparency in their capital raising activities.
“We believe that this initiative will not only strengthen GTCO’s capital base but also enhance investor confidence and contribute to the overall stability of the Nigerian financial system,” Kwairanga said.
Credit: thenationonlineng.net
