Guaranty Trust Holding Company Plc (GTCO) has introduced a big capital injection of N365.85 billion into its flagship subsidiary, Guaranty Trust Bank Restricted (GTBank), as a part of efforts to fulfill the Central Bank of Nigeria’s (CBN) new capital necessities for banks with worldwide authorization.
The transfer, disclosed in a regulatory submitting on Friday and signed by Firm Secretary Erhi Obebeduo, was executed by means of a rights difficulty involving the issuance of almost 7 billion extraordinary shares of GTBank to GTCO.
This strategic transaction raises GTBank’s share capital from N138.186 billion to N504.037 billion, surpassing the CBN’s mandated minimal of N500 billion for internationally licensed business banks.
“Via this capital injection, the share capital of GTBank has been elevated from N138.186 billion to N504.037 billion and ensures the bank’s compliance with the brand new minimal capital requirement for business banks with worldwide authorisation stipulated by the Central Bank of Nigeria,” the assertion learn.
Strengthening the Steadiness Sheet Forward of 2026 Deadline
The capital increase comes amid a sector-wide race to adjust to the CBN’s recapitalisation directive issued in March 2024.
The directive requires business banks to bolster their capital bases by March 2026, following financial headwinds together with the naira’s sharp devaluation and protracted inflationary pressures.
GTBank now joins tier-1 lenders Access Bank and Zenith Bank in assembly the brand new capital threshold, reinforcing its place in Nigeria’s banking panorama. The injection not solely secures GTBank’s worldwide banking license but additionally positions it for strategic enlargement.
Deployment of Capital for Development and Innovation
GTCO confirmed that the extra fairness will probably be deployed to develop GTBank’s department community, develop its asset base, together with loans and funding securities, and improve its info expertise infrastructure. The bank additionally goals to leverage rising alternatives throughout Nigeria and different markets the place it operates.
“The extra fairness capital will probably be deployed by GTBank primarily for department community enlargement and asset progress (loans/advances and funding securities portfolio), fortification of its info expertise infrastructure, and to leverage rising alternatives in Nigeria and the working environments the place it maintains banking presence,” GTCO said.
The recapitalisation programme was accepted at GTCO’s 2024 Annual Common Assembly and executed in two phases with full regulatory clearance. Following the allotment, GTCO retains 100% possession of GTBank.
What You Ought to Know
- The CBN’s recapitalisation push has turn into a defining theme in Nigeria’s monetary sector, geared toward constructing a extra resilient banking system.
- As of July, CBN Governor Olayemi Cardoso confirmed that no less than eight banks had met the brand new necessities, whereas others proceed to discover mergers and acquisitions to stay aggressive.
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