A major strategic shift toward supporting small businesses took center stage at Guaranty Trust Holding Company (GTCO)’s latest Annual General Meeting, where the Group Chief Executive Officer, Segun Agbaje, confirmed that the bank’s zero Point of Sale (POS) charge policy is a permanent initiative rather than a temporary incentive.
Addressing shareholders during the virtually held AGM, Agbaje clarified that the removal of processing fees on all GTBank POS terminals is not a short-term promotional campaign but a core part of the Group’s long-term strategy. The policy, which took effect on February 11, 2025, eliminates Merchant Service Charges (MSC) for merchants, allowing businesses to receive payments without incurring transaction costs.
According to him, the decision is rooted in the realities faced by many small and medium-sized enterprises (SMEs) across Nigeria, where transaction fees often pose a significant barrier to growth.
“Zero POS charges are necessary to our strategy. Most of Nigeria’s small businesses, SMEs, many of them cannot afford the charges, and so to grow this business, we will continue. The zero POS charge is for life. It is not a promo. It will continue for as long as this organization exists,” he stated.
He explained that by removing these fees, GTCO aims to empower merchants who previously struggled with the high cost of processing payments, thereby reducing their operational expenses, improving efficiency, and enhancing customer experience. The initiative aligns with the Group’s broader objective of fostering business growth while accelerating the adoption of cost-effective digital payment solutions.
Agbaje also used the opportunity to address investor expectations, noting that GTCO currently caters to two distinct categories of shareholders: institutional investors focused on capital appreciation and retail investors who prioritize dividend income. He said the Group is deliberately balancing both interests.
“We have two sorts of investors today. We have institutional investors who want capital appreciation and we have retail investors, so we’re balancing two things. We’re balancing the capital appreciation and an increasing dividend,” he explained, adding that the company remains committed to sustaining and improving dividend payouts over time.
Providing further insight into the company’s strategic direction, Agbaje revealed that GTCO is still in the early stages of executing its long-term transformation plan following its transition to a holding company structure. He described the Group as being “about 10% of the way” through its journey, which is built on four key pillars: banking, payments, asset management, and pension fund administration.
“The strategy is playing out nicely, but I would like to emphasize that it’s in the very early stages of execution. If you ask me where we’re going, we’re probably 10% of the way, and we would like to continue to move all these pieces to get to the finish line,” he said.
On financial performance, Agbaje acknowledged shareholder concerns over returns, particularly in light of a slight decline in profitability in 2025. He reassured investors that the Group would maintain its tradition of paying attractive dividends, supported by disciplined execution and long-term strategic focus.
“Our commitment is to continue hopefully to give you a better and better dividend. We are disciplined as an organization in executing our daily responsibilities and long-term strategy,” he added.
Guaranty Trust Holding Company reported a pre-tax profit of N1.23 trillion for the year ended December 2025, representing a 2.78% decline compared to N1.27 trillion recorded in 2024. Profit after tax also dropped by 14.94% to N865 billion from N1 trillion in the previous year.
Despite the decline in profitability, the Group recorded growth in revenue, with gross earnings rising slightly to N2.215 trillion, indicating resilience in its core business operations.
In line with its commitment to shareholder returns, GTCO declared a total dividend of N12.76 per share for the 2025 financial year. This includes an interim dividend of N1.00 per share and a final dividend of N11.76 per 50 kobo ordinary share—representing a 67% increase compared to the N7.03 final dividend paid in 2024, and a 59% increase in total dividend relative to the previous year. The final dividend remains subject to withholding tax, as disclosed in the company’s audited financial statements.
Overall, the announcement reinforces GTCO’s dual focus on driving inclusive economic growth—through initiatives like zero POS charges for SMEs—while continuing to deliver strong and improving returns to its diverse base of shareholders.