The Group Chief Executive Officer of Guaranty Trust Holding Company (GTCO), Segun Agbaje, has said that the bank’s zero Point of Sale (POS) charge policy is a permanent part of the company’s strategy to support small and medium-sized enterprises (SMEs) in Nigeria.
Speaking on Tuesday during the company’s Annual General Meeting (AGM), held virtually and monitored by Nairametrics, Agbaje reaffirmed that the zero POS processing fee policy would not be a short-term promotional offer but a long-term commitment.
The remark follows the removal of processing fees on all GTBank POS terminals, reinforcing its commitment to supporting businesses with cost-effective payment solutions.
What the CEO is saying
In response to shareholder questions, Agbaje addressed concerns about the permanence of the zero POS charge initiative, firmly stating that it was not just a promotional campaign.
- “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 explained that the financial burden posed by transaction charges has made it difficult for many local businesses to scale effectively.
By removing these fees, GTCO aims to empower merchants who previously struggled with the high costs of processing payments.
Agbaje also shared that GTCO has two types of investors: institutional investors seeking capital appreciation and retail investors focused on dividends, noting that the bank is balancing both, with plans to continue paying higher dividends in the future.
- “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.”
Get up to speed
The announcement follows GTBank’s removal of processing fees on all POS terminals in 2025, an initiative that started on February 11.
- This policy allows merchants using GTBank POS terminals to receive payments without incurring Merchant Service Charges (MSC).
- With this move, SME merchants can now receive payments without additional costs, reducing operational expenses and enhancing customer experiences.
GTCO emphasized that this Zero Processing Charge campaign is aligned with the bank’s broader goal to empower businesses and foster growth and efficiency.
More insights
In addition to the zero POS charge initiative, Agbaje provided an update on the bank’s strategic direction, especially following its transition to a holding company structure.
He mentioned that the company is “10% of the way” through its long-term plan, which encompasses four key pillars: banking, asset management, pension fund administration, and payments.
- “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.”
Addressing shareholders’ concerns over returns, Agbaje assured them that the company would continue its tradition of paying attractive dividends despite a slight decline in Profit Before Tax (PBT) in 2025.
- “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.”
What you should know
Guaranty Trust Holding Company reported a pre-tax profit of N1.23 trillion for the year ended December 2025, reflecting a decline of 2.78% compared to N1.27 trillion in 2024. Profit after tax dropped 14.94% to N865 billion from N1 trillion the previous year.
- Despite these declines, the bank saw growth in its revenue, with gross earnings increasing slightly to N2.215 trillion.
- The holding company declared an interim dividend of N11.76 kobo per 50 kobo ordinary share, representing a 67% increase compared to the N7.03 kobo final dividend paid in 2024.
- Combined with an earlier interim dividend of N1 per share, the total dividend for 2025 stands at N12.76 kobo—59% higher than the total dividend paid in 2024.
The final dividend will be subject to withholding tax, as stated in the bank’s audited financial statements.
