Guaranty Trust Holding Company (GTCO) is targeting a minimum dividend yield of 15% and a return on equity (ROE) of at least 25%, according to Group CEO Segun Agbaje, following the bank’s landmark dual listing of its ordinary shares on the London Stock Exchange (LSE).
Speaking in a post-listing media chat in London, Agbaje explained that the transition from Global Depositary Receipts (GDRs) to a full LSE share listing is more than just optics; it is a strategic recalibration aimed at unlocking access to global capital and attracting long-term institutional investors.
“Every Nigerian company should pay at least 15% dividend yield, especially when you look at the inflation rate,” Agbaje said in response to a question from one of the journalists “We are also setting our ROE floor at 25%, especially considering the macro volatility in Nigeria.”
The dual objectives, a high payout for income-focused investors and a strong ROE for growth-oriented shareholders, are part of GTCO’s broader bid to maintain investor confidence across both domestic and international markets.
On capital raise strategy and post-expansion plans
Asked on why GTCO split its capital raising between local and international tranches, Agbaje explained the method behind the move:
“We have over 50% of our shareholder base in retail, and we didn’t want to dilute them,” he said. “So, we raised as much as we could locally, N209 billion and then came to the international market for the delta.”
Further on expansion beyond Nigeria across Africa and into global markets, now with fresh capital secured and a Holdco structure in place, Agbaje responded with trademark restraint.
“You know, we are very conservative. But honestly, diversification is already happening just without a lot of noise,” he said. “Nigeria today makes up 67% of our profit, West Africa 27%. Now we want to push East Africa, which is at 1.5%, and the UK, which currently contributes just 1.8%.”
He revealed Senegal would be the group’s next market entry, with plans to increase branch networks in existing countries, not just to plant flags, but to gain meaningful market share.
“There’s no point being in 30 countries and being dormant. The goal is to be dominant in every market we enter, top 5 in each country, that’s the aspiration.”
When asked about potential entries into the U.S. or Asia, Agbaje didn’t rule it out — but made it clear GTCO would move cautiously.
“We’re still digesting the UK, and it only contributes 1.8% of its profit. But when we do look outward, the Far East may be a better strategic fit for us than the U.S., especially in terms of trade flows.”
On regulation, CRR, and Forbearance
Pressed on navigating LSE’s regulatory landscape, Agbaje described the process as “challenging but necessary,” emphasizing the importance of media discipline and reputational integrity:
“You must be able to defend every word. That’s the standard international markets demand — and it’s something we must adopt in Nigeria too,” he said.
He elaborated further, reflecting on lessons learned during the listing process:
“The takeaway is that we must learn how to play by the rules, because you’ll be surprised how much they pop up. Another takeaway, which I pray we understand in Nigeria, is that we must use the media more responsibly. When you do due diligence on a company, everything you say about the company or individuals shows up. You must be ready to defend it. But many don’t see it that way. You go through a lot; you have to debunk, confirm, and explain. But it also tells you that you can scale it, if you live your life as well as you can.”
On the contentious forbearance issue, Agbaje pushed back against the narrative that GTCO had been caught off guard by the Central Bank’s decision to end regulatory reliefs.
“I’m going to answer that a bit differently, if you don’t mind. First, I don’t think forbearance should have come as a surprise to the banks,” he said. “We had letters in 2023 to exit forbearance. Therefore, we should have exited by the end of 2024. So, whatever the regulator chose to do shouldn’t have come as a surprise. We were given more than enough time. I released my position for forbearance”
He also commented on the cash reserve ratio (CRR), describing it as a legacy tool used to manage excess liquidity and expressing confidence that the monetary authorities would eventually return to more conventional policies.
Backstory
On July 9, 2025, GTCO’s ordinary shares were officially admitted to trading on the main market of the London Stock Exchange (LSE).
This marked a major shift in the bank’s international strategy. Since July 1, 2021, GTCO has maintained a presence on the LSE through its Global Depositary Receipts (GDRs), with each GDR representing 50 ordinary shares. The GDRs served as a bridge for international investors seeking exposure to the bank, without the complications of Nigeria’s local market.
But after years of limited liquidity and structural constraints, GTCO made the bold decision to cancel the GDR programme and list its actual shares directly.
Now, with the LSE listing live, the GDRs officially retired, and trading volumes poised to improve, GTCO has completed a seamless transition — one that positions it with a dual-market footprint (NGX and LSE), broader global investor access, and a stronger platform to fund its next chapter of pan-African expansion.
