Guaranty Trust Holding Company Plc (GTCO) has announced the appointment of Suleiman Barau, a former Deputy Governor of the Central Bank of Nigeria (CBN), as its new Group Chairman, subject to the necessary regulatory approvals. The decision, which aligns with the financial institution's established succession planning, was disclosed during the company's fourth annual general meeting (AGM) held virtually on Thursday.
Suleiman Barau brings a wealth of experience in the financial sector to his new role. As a pioneering director of GTCO since its restructuring, his extensive background and strategic insight are expected to be instrumental in guiding the company through its next phase of growth and innovation within the dynamic financial landscape.
The outgoing chairman, Hezekiah Oyinlola, expressed strong confidence in Barau's capabilities, stating his belief that Barau's strategic acumen and proven leadership track record will propel GTCO to even greater achievements. This smooth transition underscores GTCO's commitment to ensuring strong and consistent leadership.
During the AGM, shareholders also ratified the payment of a substantial total dividend of N8.03 per share for the 2024 financial year. This comprises a previously declared interim dividend of N1 per share and a final dividend of N7.03 per share, reflecting the company's robust financial performance and commitment to rewarding its shareholders.
The approval of this generous dividend was underpinned by GTCO's impressive financial results for the year, which saw a remarkable 81.1 per cent surge in gross earnings, reaching N2.1 trillion in 2024, a significant increase from the N1.19 trillion recorded in the previous year. This substantial growth in earnings provided a solid foundation for the increased dividend payout.
In his address to shareholders, Oyinlola highlighted a historic milestone for the company: becoming the first Nigerian bank to surpass the N1 trillion profit mark in 2024. "In 2024, we became the first Nigerian bank to surpass the N1 trillion profit mark, an achievement that underscores the resilience of our business model, the dedication of our people, and the trust our customers place in us," he stated, emphasizing the significance of this achievement.
The Group Chief Executive Officer of GTCO, Segun Agbaje, further elaborated on the company's performance, noting that its banking subsidiary, Guaranty Trust Bank, continued to be a key driver of growth across its operational regions, including Nigeria, West Africa, East Africa, and the United Kingdom. This geographical diversification has proven to be a strength for the Group.
Agbaje also pointed to the Central Bank of Nigeria’s recent recapitalisation policy as a crucial factor in strengthening GTCO’s market position. This policy enabled the company to successfully complete the first phase of its equity capital raising plan through a Public Offer, which generated N209.41 billion and significantly expanded the company’s shareholder base. "This Public Offer attracted strong participation from both domestic retail and institutional investors, raising N209.41 billion and expanding our shareholder base from 332,000 to over 460,000," Agbaje explained, highlighting the broad investor confidence in GTCO's prospects.
Speaking on behalf of the shareholders, Bisi Bakare, the national coordinator of the Pragmatic Shareholders Association of Nigeria, commended the company's resilience and impressive financial success. She specifically acknowledged the approval of the proposed final dividend declaration of N7.03 per share, underscoring the shareholders' satisfaction with the company's performance and returns.
The strong financial results for the 2024 financial year further solidify GTCO's position as a leading financial institution. The company reported a profit before tax of N1.27 trillion, demonstrating a substantial 107.8 per cent increase from the N609.31 billion recorded in 2023. This remarkable growth in profitability, coupled with the strategic appointment of a seasoned leader like Suleiman Barau, positions GTCO for continued success and expansion in the years to come.