Guaranty Trust Holding Company (GTCO) has assured shareholders that it will continue increasing dividends in 2026 and that its foreign subsidiaries are financially independent.
This was disclosed during the bank’s 5th Annual General Meeting, held virtually on April 28, 206.
What GTCO is saying
In response to shareholder questions, the Group CEO, Mr. Segun Agbaje, provided clarity on the bank’s strategy for sustaining dividend growth, saying:
- “We have two types of investors, with different expectations. Institutional investors for capital appreciation and retail investors for dividends. We are focused on balancing both capital appreciation and increasing dividends. This is not a short-term goal but a long-term commitment.”
He emphasized that despite rising operating costs, the bank would continue to increase dividends.
- “Our strategy is simple, we continue to grow dividends year on year. As long as we are in business, the dividend payout will keep increasing,” Agbaje assured shareholders.
Foreign subsidiary independence
Another concern raised during the AGM was the financial independence of foreign subsidiaries, and if they are not fully independent, what strategies are in place to prevent capital from being trapped by local regulations.
In response, the CEO assured shareholders, stating:
- “There is absolutely no reliance on group capital. All the entities outside Nigeria stand on their own. We retain the profit generated in those regions and do not import or export risk between subsidiaries. Each subsidiary is financially independent.”
This self-sufficiency ensures that the bank’s international operations can grow organically without relying on capital injections from the parent company.
Oil and Gas exposure concerns
Several shareholders raised concerns about the bank’s high exposure to the oil and gas sector loan, expressing fears about the potential impact on profitability. But the CEO acknowledged the risk and the bank’s strategy:
- “We understand the concerns regarding our exposure to the oil and gas sectors. However, it’s important to note that the risks in this sector are very different depending on whether we are dealing with upstream, downstream, or gas-related operations.
- ” He elaborated that the bank applies a tailored approach to each segment, managing each risk independently.”
- “We manage these risks very carefully, and our strategy ensures that we are well-positioned even in times of market volatility,” he assured shareholders.
On a decline in gross earnings.
He informed shareholders that the bank is implementing new strategies to reverse the decline; optimizing cost base, enhancing digital channels, and strengthening retail banking operations.
- “We will continue to diversify our revenue streams and innovate in areas such as asset management and pension services to offset these challenges. While the outlook remains cautious, we are confident that these strategies will position us for improved performance in the coming years.”
What you need to know
This marks the 5th Annual General Meeting (AGM) of Guaranty Trust Holding Company (GTCO), held virtually on April 28, 2026.
The meeting was convened to transact both ordinary and special business as per the agenda outlined for the year.
A total of 1,931 shareholders, representing 53% of the company’s issued share capital, were present at the commencement of the meeting.
Of these, 1,288 shareholders attended in person, while 643 shareholders participated as proxies. This ensured that a forum was formed.
During the AGM, several important resolutions were passed, including the re-election of Mr. Babatunde Soyoye and Mrs. Marie Namias as independent non-executive directors.
Additionally, shareholders approved the bank’s 2025 financial statements and the final dividend payout.
Shareholders also endorsed the bank’s ongoing commitment to empowering small and medium-sized enterprises (SMEs), particularly through initiatives like the zero Point of Sale (POS) charge policy, which reduces operational costs for businesses across Nigeria.
