Guaranty Trust Holding Company (GTCO), a Nigerian financial services group valued at ₦1.39 trillion, has raised ₦209.41 billion ($135 million) from retail and institutional investors, completing the first tranche of a capital raise program mandated by the Central Bank of Nigeria (CBN).
“This sets a solid foundation for accelerating our strategic roadmap which aims to pivot the group for non-transformational growth and unlock greater value across banking and non-banking business,” Segun Agbaje, group CEO of GTCO said in an NGX filing dated January 7th.
GTCO will be the third Nigerian bank to make this announcement, months after the Central Bank raised minimum capital requirements tenfold for the country’s biggest banks. In September 2024, First City Monument Bank (FCMB) Group Plc raised ₦150 billion to shore up additional capital, while sharing plans to increase the amount to ₦340 billion. In December of 2024, Access Holdings became the first of Nigeria’s five biggest banks—First Bank, Access Bank, UBA, Guaranty Trust Bank and Zenith Bank to arrive at ₦600 billion — 20% above CBN’s minimum requirements for international banks operating in the West African country.
GTCO’s ₦200 billion raise is still shy of the required 500 billion mark and the bank will be looking to conduct a second raise in 2025. The bank’s latest filing failed to clarify when. However, all 25 banks still have until March 2026 to meet the new additional capital requirements. According to CBN rules, commercial banks with international spread will increase their capital by as much ₦500 billion to be licensed to operate in the country. While national and regional banks will raise ₦200 billion and ₦50 billion respectively.
Proceeds from the combined equity raise will be deployed to recapitalise the group’s flagship subsidiary, GTBank Nigeria which is indeed of an immediate turnaround. In October 2024, most of its 32.8 million retail customers were frustrated due to numerous complaints of failed transfers and erroneous debit and credit alerts. A majority of those complaints arose as the bank switched its core banking platform to Finacle, in need of seemingly cheaper alternatives. A successful capital raise may not put failed transfers to an end but it could certainly take the banking efficiency leader to its $1 billion profit target.
GTCO shares rose 1.42% to ₦57 on Monday following the announcement.
