Guaranty Trust Holding Company Plc is preparing to raise about N525 billion capital through a public offer to strengthen the capital base of its subsidiary, Guaranty Trust Bank.
The News Agency of Nigeria learnt it was in response to the Central Bank of Nigeria’s directive for banks to recapitalise.
This is in the light of the various macro-economic factors impacting the banking sector.
According to a source who prefers anonymity, the development is in line with trends in the industry that Nigerian banks must be strategically positioned to enhance their capital reserves, either through dilutive or non-dilutive means.
The source said: “There is a very strong indication that the Bank that will soon be in the market to raise between N450 billion to N525 billion through public offer is Guaranty Trust Holding Company Plc.”
According to credible sources, the proceeds from the newly sourced capital will supplement the capital needs of its flagship banking subsidiary, GTB.
The source added: “The capital will facilitate the enhancement of the bank’s ability to book large ticket transactions, as the effect of devaluation has impacted single limits for most banks and thus, their ability to book and participate in large ticket transactions.
“We expect GTCO to make this announcement anytime from now.”
GTCO Plc recently unveiled its unaudited consolidated and separate financial statements for the period ended September 30, 2023.
The group, in the results released to the Nigerian Exchange Group and London Stock Exchange, reported profit before tax of N433.2 billion, representing an increase of 155.2 percent over N169.7 billion recorded in the corresponding period ended September 2022.
The group’s net loan book grew by 17.7 percent from N1.89 trillion recorded as at December 2022 to N2.22 trillion in September 2023, while deposit liabilities increased by 37.9 percent from N4.61 trillion in December 2022 to N6.36 trillion in September 2023.
GTCO Plc consists of other non-banking businesses, including payment, funds, management, and pension funds management businesses in its ecosystem.
