This response follows allegations made during a press conference held by a group identified as GIC.
In a firm statement, the banking institution reassured its customers, shareholders, and stakeholders of its unwavering commitment to transparency and high standards.
GTCO expressed its alarm over the ongoing publication of what it terms “false news articles,” which it believes are part of a deliberate campaign by certain entities aimed at damaging its reputation. These reports, disseminated across various media channels, contain fabricated claims regarding the company’s activities and leadership.
The bank highlighted that it has initiated prompt legal action against those responsible for spreading this misinformation. GTCO affirmed its intention to utilize all legal avenues available to protect its brand and maintain the integrity of its operations.
“Being a responsible corporate citizen and a first-class institution, GTCO Plc has taken swift and decisive legal actions against the various sources of these false reports,” the statement read. “We will continue to use the full extent of the rule of law available to safeguard our reputation.”
GTCO has refuted claims that its executive management is under any financial or regulatory scrutiny, as suggested in recent reports. The organization reassured that its leadership team will continue to function fully in their appointed roles without any limitations or concerns.
The bank encouraged its customers, investors, and stakeholders to dismiss these allegations and maintain their confidence in its operations and leadership. GTCO expressed appreciation for the ongoing support and loyalty of its clients, reaffirming its dedication to integrity and exceptional service.
Recently, GTCO submitted its Audited Consolidated and Separate Financial Statements for the period ending June 30, 2024, to both the Nigerian Exchange Group (NGX) and the London Stock Exchange (LSE).
The Group reported a profit before tax of N1.004 trillion, marking it as the first Nigerian financial institution to surpass the N1 trillion profit threshold.
This significant achievement reflects a 206.6 percent increase from the N327.4 billion reported for the same period in 2023. Additionally, the Group's net loan portfolio grew by 25.5 percent, rising from N2.48 trillion in December 2023 to N3.11 trillion in June 2024, while deposit liabilities surged by 39.8 percent, increasing from N7.55 trillion in December 2023 to N10.55 trillion in June 2024.
The Group experienced growth across all asset categories and continues to uphold a well-structured, healthy, and diversified balance sheet across all regions where it operates its banking franchise, as well as in its payments, pension, and funds management sectors. Total assets and shareholders’ funds reached N14.5 trillion and N2.4 trillion, respectively.
The Capital Adequacy Ratio (CAR) remained robust at 21.0 percent, and asset quality was preserved, as indicated by IFRS 9 Stage 3 Loans, which increased slightly to 4.3 percent in June 2024 from 4.2 percent in December 2023, alongside an improvement in the Cost of Risk (COR) from 4.5 percent in December 2023 to 1.6 percent.
In reference to the outcomes, Segun Agbaje, the group chief executive officer of Guaranty Trust Holding Company Plc, remarked: “We are immensely proud of the progress we have made as a leading financial holding company. Despite the uncertainties in the operating environment, our performance in the first half of the year, where we recorded our highest profit to date, is a testament to the resilience and adaptability of our business model. We remain optimistic about the future and are committed to leveraging our unique strengths as a thriving financial services ecosystem to create sustainable value for all our stakeholders as we continue to position all our business verticals–Banking, Funds Management, Pension, and Payments–for rapid growth across key markets.”
Allegation of GIC
In a recent press conference organized by the Global Integrity Coalition (GIC), serious allegations were made against Guaranty Trust Bank (GTBank) regarding unethical conduct in Nigeria.
The conference's organizer asserted that one of the latest corrupt activities associated with the bank involves the unauthorized opening of customer accounts.
The GIC contended that sensitive information, including phone numbers and Bank Verification Numbers (BVN), has been utilized without customer consent to establish these accounts. This practice, according to the coalition, is a strategy employed by the bank to artificially enhance its customer numbers and portray inflated profitability.
The GIC cautioned, “This unauthorized account creation violates data privacy and puts over 10,000 customers at risk of identity theft and fraud without their awareness.” Additionally, the group indicated that some affected customers have expressed intentions to pursue legal action against the bank.
During the conference, the GIC further accused GTBank of manipulating its financial statements. Referencing the bank's recent announcement of a N1.004 trillion profit before tax for the period ending June 30, 2024, the coalition argued that these figures were exaggerated.
The GIC claimed that the reported profits were fabrications devised by the bank’s management to mislead regulatory authorities such as the Central Bank of Nigeria (CBN) and the Financial Reporting Council of Nigeria (FRCN). “There is no credible evidence to substantiate these profit assertions,” stated the GIC organizer.
The GIC's allegations extended beyond Nigeria, as they also pointed to fines imposed on GTBank’s UK branch by the Financial Conduct Authority (FCA). This included a £525,000 penalty for management failures between 2008 and 2010, along with a £10 million fine for repeated violations of anti-money laundering regulations.
“GTBank's corporate reputation has been severely damaged in numerous foreign markets,” the GIC asserted, raising concerns about the bank’s adherence to international compliance standards.
In a recent development, GIC announced the suspension of GTBank Ghana’s foreign exchange trading license for one month in March 2024, attributed to fraudulent documentation in its foreign exchange dealings.
GIC has urged the Central Bank of Nigeria (CBN) to promptly dissolve the board and management of GTBank, recommending a thorough examination of the bank’s financial records by regulators.
The group also called for the suspension of GTBank’s CEO, Segun Julius Agbaje, and requested a public hearing by the National Assembly to address the concerns raised.
Furthermore, GIC appealed to international bodies, including the US Department of Justice and the UK’s National Crime Agency, to terminate GTBank’s operations within their jurisdictions, citing potential risks related to money laundering and terrorism financing.
The GIC reiterated its commitment to advocating for reforms within the Nigerian banking sector, urging regulatory authorities to take immediate action to safeguard customers and investors. The convener concluded by stating, “We possess the documentation to support our allegations, and we will ensure that this issue is pursued to its conclusion.”