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Business News

GTBank Plc to consider a holding company structure

The CEO of Guaranty Trust Bank Plc (GTB), Segun Agbaje, has disclosed that the tier-1 bank is currently considering a holding company structure.

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GTBank Sponsors 2020 Lagos International Polo Tournament, Buying opportunity as GTB share price falls to 2 year low, GTBank releases 2019 full year audited results, Guaranty Trust Bank Plc to consider a holding company structure, GTBank launches Beta Health, expands access to health insurance for low-income Nigerians

The Chief Executive Officer of Guaranty Trust Bank Plc (GTB), Segun Agbaje, has disclosed that the tier-1 bank is currently considering a holding company structure.

Agbaje disclosed this during the company’s recently-held earnings call. Responding to questions by Lanre Buluro, a Director at Chapel Hill Denham, GTBank’s CEO explained that a holding company structure will enable his company to keep up with the latest trends in the Nigerian financial services industry.

GTBank declares dividend payment for FY 2019

GTBank declares dividend payment for FY 2019

According to him, Guaranty Trust Bank had decided, about ten years ago, to shed all of its subsidiaries in order to become mainly bank-focused. However, trends in the banking and financial services sector over the last few years have informed the company’s decision to rethink its earlier decision.

For instance, Nigerian banks, which are mainly focused on pure banking, have only been able to grow their profits by 5-7%. GTBank noted that this is not sustainable enough even though those numbers are not bad.

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[READ MORE: GTBank declares dividend payment for FY 2019)

He then explained further, noting that there are other lines of businesses, asides pure banking, that are doing very well in the financial services industry. One of them is payment solutions. Already, GTBank offers services along this line of business and was able to grow its profit in this space by 60%. Therefore, a holding company structure will enable GTB to better specialise/consolidate on the gains already recorded in its various business ventures outside of pure banking. He said:

“There are other lines if businesses that are doing very well. If you look at our financial statement, you will see that our payment business is growing by about 60%. So, that is an area we like.

Deal book 300 x 250

“If you look at what is happening in the PFA space, the volume is growing everyday. And if you look at the banks and look at where a lot of their profits are coming from, you will see that a lot of it is coming from that space.

“As an organisation, we have  that in the world that we live in today as opposed to ten years ago, and if you look at the landscape — what the fintechs are doing, what the telcos are doing, what asset management companies are doing, what insurance companies are doing in the financial space— that as an organisation and with the approval of the board, that it is time to consider a holding company structure.”

He went on to state that this is obviously a very delicate decision. As such, it will require a whole lot of approvals, including the approvals of regulators and the company’s shareholders.

He also disclosed that all things being equal, he might end up taking up a bigger position in the proposed GTB holding company.

Note that Segun Agbaje’s tenure as the Chief Executive Officer of Guaranty Trust Bank Plc is set to expire sometime around half-year 2020.

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In the meantime, some experts have publicly reacted to this development. Igho Alonge, an investment advisor and former fixed income portfolio manager, tweeted the following:

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[READ ALSO: GTBank releases 2019 full year audited results)

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Simply defined, a holding company, according to Investopedia, is a parent corporation that owns majority shares in other companies and can, therefore, control such companies decisions and over their management decisions.

In the Nigerian financial services industry, companies like FBN Holdings Plc, Stanbic IBTC Holdings Plc, and FCMB Group Plc are all holding companies with various subsidiaries that they oversee.

You may listen to the whole of  GTBank’s earnings conference call by clicking here.

Emmanuel is a professional writer and business journalist, with interests covering Banking & Finance, Mergers and Acquisitions, Corporate Profiles, Brand Communication, Fintech, and MSMEs.He initially joined Nairametrics as an all-round Business Analyst, but later began focusing on and covering the financial services sector. He has also held various leadership roles, including Senior Editor, QAQC Lead, and Deputy Managing Editor.Emmanuel holds an M.Sc in International Relations from the University of Ibadan, graduating with Distinction. He also graduated with a Second Class Honours (Upper Division) from the Department of Philosophy & Logic, University of Ibadan.If you have a scoop for him, you may contact him via his email- [email protected] You may also contact him through various social media platforms, preferably LinkedIn and Twitter.

3 Comments

3 Comments

  1. Mina Kema

    March 11, 2020 at 9:29 pm

    GTBank’s decision did not make sense 10 years ago. It is interesting they are humble enough to retrace their steps.

  2. IKECHUKWU

    March 13, 2020 at 9:37 am

    THEY STILL MAKE MORE MONEY THAN THE GROUPS LISTED

  3. Hassan SAKA Bayo

    November 7, 2020 at 7:13 am

    How can someone invest in nairetrics or other investment schemes.

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Coronavirus

Covid-19: U.S. donates field hospital worth $1.3m to Nigeria

The United States of America has donated a field hospital worth $1.3 million to Nigeria.

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NPHCDA to address infrastructural gaps in COVID-19 vaccine supply, FG to focus on procurement of Covid-19 vaccine in first quarter 2021

The United States has donated field hospital worth $1.3 million to Nigeria.

The U.S. has donated field hospital worth $1.3 million to Nigeria, in a bid to further contain the spread of Covid-19 cases and its related deaths.

According to a report by The Nation, the field hospital is located at the Federal Medical Centre in Jabi, Abuja.

The facility contains four fully equipped, negative pressure isolation facilities with the capacity to house up to 40 patients, an administrative unit, a 160-kw auxiliary generator, as well as other support equipment such as beds, sub-floors, showers and lavatories.

The facility was donated to the Nigerian Federal Ministry of Health by the United States Department of Defence’s U.S. Africa Command, with support from the U.S. Centre for Disease Control (CDC) and the Walter Reed Army Institute of Research (WRAIR).

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The facility was manufactured and built in the US by Alaska Structures, while a team of Nigerians assembled it in Abuja.

The facility was commissioned by the Minister of State for Health, Dr. Senator Olorunnimbe Mamora and the U.S. Ambassador to Nigeria Mary Beth Leonard.

What they are saying

Ambassador Leonard noted that:

“As we celebrate 60 years of U.S.-Nigeria diplomatic relations, and many years of health partnerships, it is deeply satisfying to look back on the many ways we have worked together to improve the health, safety and security of the Nigerian people,

“Supporting the healthcare workers who are caring for patients at this facility and across the country, is critical to Nigeria’s effort to slow the spread of COVID-19.”

What you should know

According to Nairametrics Covid-19 tracker, as of Monday 25th January 2021

  • The total number of cases stood at 122,996.
  • The total number of death stood at 1,507.
  • The total number of tests conducted stood at 1,270,523.

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Energy

Nigeria seeks technical support from UKNIAF to transform critical power infrastructure, projects

UKNIAF could help Nigeria transit from the ‘Transitional Electricity Market (TEM)’ to the ‘Medium-Term Electricity Market (MTEM)’.

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The Federal Government is in talks to partner with the United Kingdom Nigeria Infrastructure Advisory Facility (UKNIAF) to transform critical power infrastructure and projects.

FG intends seeking technical support from the facility, focusing on power sector policy reforms, Tariff reforms, DisCo audits, grid efficiency and sustainable off-grid renewable solutions.

This was disclosed by the Ministry of Power, after the Minister, Engr Salem Mamman, met with members of UKNIAF led by Program Lead for Power, Mr. Frank Edozie on Monday via its Twitter handle.

The Ministry of Power tweeted, “The Hon. Minister of Power @EngrSMamman held a meeting with members of the United Kingdom Nigeria Infrastructure Advisory Facility @ukniaf led by Program Lead for Power, Mr. Frank Edozie to discuss partnering to transform critical power infrastructure and projects.

“They discussed how the facility can be of help with providing technical support to @NERCNG, @TCN_NIGERIA, @realREANigeria & @nbetnigeria by focusing on, Power sector policy reforms, Tariff reforms, DisCo audits, grid efficiency and sustainable off-grid renewable solutions.”

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What it means

Aside from offering technical support to sector’s regulators and other agencies, the partnership, if it works, would help Nigeria transit from the ‘Transitional Electricity Market (TEM)’ to the ‘Medium-Term Electricity Market (MTEM)’ which involves increased generation competition and limited retail competition.

What you should know

The Hon. Minister was joined by the Director, renewable energy resources Engr. Faruk Yusuf Yabo, his Special Adviser on Policy @abbaaliyu_, his Technical Adviser on Strategic Coordination Dr. Nurain Hassan @inhassan and his Technical Assistant on ICT & Digital Communications.

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Appointments

International Energy Insurance appoints Ebunolu Ayeni as acting MD/CEO

International Energy Insurance Plc announces the appointment of Ebunolu Ayeni as acting Managing Director/CEO.

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Insurance in Nigeria, FBN Holdings Annual general Meeting, FBN General Insurance Limited CEO Bode Opadokun, FBN General Insurance Limited 2018 financial result

International Energy Insurance has announced the appointment of Mr Ebunolu Ayeni as the new acting Managing Director of the firm, following the retirement of his predecessor, Mr Peter Irene.

This is according to a disclosure signed by the firm’s secretary, Adeyinka Hassan and sent to the Nigerian Stock Exchange, as seen by Nairametrics.

The appointment of Mr Ebunolu Ayeni is sequel to the resignation of Mr Peter Irene, who until his resignation on December 20, 2020, was the Managing Director/ CEO of the firm. According to the notification, Mr Ayeni has immediately taken over the leadership of management in an acting capacity, in order to fill the void, pending the approval of the National Insurance Commission for the appointment of a substantive Managing Director.

Mr Ayeni is an alumnus of the University of Lagos, where he obtained a BSc. Degree in Insurance. He also has a Master’s degree in Marketing and Management from Ladoke Akintola University and Enugu State University respectively.

In terms of professional membership, Mr Ayeni is a fellow of the Insurance Institute of Nigeria, a member of Nigeria Council of Registered Insurance Brokers and the Institute of Loans and Risk management, Nigeria.

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What you should know

  • International Energy Insurance Plc provides insurance solutions to the energy sector. The company’s scope include; oil and gas, engineering/car, bond and finance among others.
  • International Energy Insurance Plc share price closed trading on 25th of January, 2021 at N0.38.

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