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By Chinwendu Obienyi
Segun Agbaje, the Group Chief Executive Officer of Guaranty Trust Holding Company (GTCO), has announced strategic measures to bolster its banking segment and other business verticals through an upcoming equity raise. This initiative aims to fortify the group’s position and enhance shareholder value.
Speaking at the Facts Behind the Offer presentation on the floor of the Nigerian Exchange Limited (NGX) in Lagos on Monday, Agbaje disclosed GTCO’s intention to improve its dividend payout ratio from an average of 40% to a target range of 50-55%. He emphasised the group’s commitment to maximizing returns for shareholders while supporting growth initiatives across its banking operations and broader business interests.
The planned equity raise seeks to generate N400.5 billion through the public offer of 9 billion ordinary shares at an offer price of N44.50 per share. Agbaje outlined that the proceeds will be utilized for expanding GT Bank Nigeria, enhancing the group’s overall business growth, and addressing regulatory capital requirements.
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Highlighting the inclusive nature of the public offer, Agbaje noted its preference over a rights issue, ensuring broader participation from GTCO’s extensive retail base. He stressed the importance of accommodating retail investors, underscoring the group’s commitment to transparency and equitable shareholder engagement.
In addressing concerns about prevailing high interest rates, Agbaje advocated for economic measures to mitigate inflationary pressures, aligning interest rates with inflation to safeguard savers and pensioners. He reaffirmed GTCO’s strategy to expand its physical branch network to better serve its growing customer base, aiming for an optimal balance between traditional branches and modern banking channels.
Regarding dividend policy, Agbaje dismissed the prospect of issuing bonus shares, emphasizing GTCO’s focus on enhancing cash dividends. He highlighted regulatory challenges that impacted dividend payouts in recent years but expressed confidence in achieving a higher payout ratio of 50-55% moving forward.
“As we move ahead, GTCO remains steadfast in its commitment to operational excellence, sustainable growth, and delivering superior value to our shareholders,” Agbaje concluded, affirming the group’s strategic direction amidst evolving market dynamics and regulatory requirements.
This proactive approach underscores GTCO’s resilience and strategic foresight in navigating challenges while capitalizing on opportunities to reinforce its leadership in Nigeria’s financial services sector.
