From GTBank to GTCO: Anything for customers and shareholders?

The Guaranty Trust Bank, otherwise known as GTBank, is  now transitioning  from banking to a financial services group.

A financial services company is a business or company which manages, invests, exchanges, or holds money on behalf of clients. The financial services firms provide financial services to people and corporations. This segment is made up of a variety of services including banking, investment, lending, financing, real estate and insurance.

With this development  becomes a financial supermarket as  the group diversifies into other areas while still carrying banking services.

“We are now a fully-fledged Financial Services Group. This enables us to create more value for you, deliver better results for all our stakeholders and further enrich lives in the communities wherein we operate,” Segun Agbaje, the Group  CEO.

In a letter on the banks corporate reorganization, Agbaje  said Guaranty Trust is transitioning to a Holding Company Structure in view of the trends in financial services and in line with the bank’s  vision of creating more value beyond banking for” our customers, the communities in which we operate, and all our stakeholders.”

The holding company structure will enable “our organization to operate a corporate centre known as Guaranty Trust Holding Company Plc. that will be responsible for setting strategic direction, providing group-wide oversight, and aligning corporate governance and management roles for all our businesses which will extend beyond banking to include other financial services.

This development, Agbaje  said, “is very exciting to us because transitioning to a Holding Company Structure enables us to create more value for you, deliver better results for all our stakeholders and further enrich lives in the communities wherein we operate.”

But the question is : why is Guaranty Trust Bank transitioning to a Holding Company structure?  The group is  making financial services work goes beyond banking. “As part of our long-term strategy, we are entering the next phase of our growth wherein we want to create and drive innovative financial solutions that go beyond banking. In order to do so, we were legally required to adopt a holding company structure, which we have now completed. This means we are able, ready, and well-positioned to help you achieve the full breadth of your financial goals, in ways we were limited, as a bank.”

The name, Guaranty Trust, remains the same legally and in all its banking operations. It will, however, transition from a Public Listed Company (Tank Plc.) to a Limited Liability Company (Guaranty Trust Bank Nigeria Ltd) with Guaranty Trust Holding Company Plc. (GTCO Plc) as the parent company.

“Yes, we will change our logo from GTBank to GTCO, following the listing of GTCO Plc as the parent company of our banking businesses in Nigeria, across other African countries as well as the United Kingdom.

“On how the change will affect subsidiaries within the group, Agbaje said “All existing subsidiaries of Guaranty Trust Bank Plc will become a subsidiary of Guaranty Trust Holding Company Plc. Guaranty Trust Bank Plc will become a Limited Liability Company (Guaranty Trust Bank Ltd) and a subsidiary of Guaranty Trust Holding Company Plc, also known as GTCO Plc.”

Our transition to a holding company structure will have no effect on your status as a customer of Guaranty Trust Bank Nigeria or any Guaranty Trust Bank subsidiary across Africa and the United Kingdom. The transition will also not affect our banking operations in any way; you will continue to have unrestricted access to all our banking products and services in the same manner as you did before the transition.

As a Holding Company, GTCO Plc will set up new businesses that will offer you more value beyond banking. As your bank, we have always been committed to serving you simpler, cheaper and faster. With the new Holding Company Structure, we will be able to go past our previous limits to play a deeper role in making life simpler and more enriching for you.

The groups said there are advantages to being a shareholder during the transition.  “First, you will continue to receive your dividends and all benefits as previously enjoyed. Secondly, as a shareholder of the holding company, you will benefit from the entire businesses in the Group.

The holding company structure will enable our organization to drive value from new businesses whilst consolidating on the strengths of existing businesses. We will create multiple lines of income and enter into new growth whilst extracting more value from our international banking subsidiaries and increasing our core banking growth in Nigeria.

Ultimately, this Holding Company structure will enable us to enhance the growth potential of the entire group, thereby ensuring increased and sustainable returns for you and all our shareholders in the long-term.

Founded three decades ago by a group of young professionals determined to transform traditional banking; Guaranty Trust has been on a mission to make financial services accessible to all Africans in ways that truly serve people’s needs and help businesses thrive.

 Headquartered in Lagos, Guaranty Trust has banking subsidiaries in Nigeria, Cote D’Ivoire, Gambia, Ghana, Liberia, Kenya, Rwanda, Tanzania, Uganda, Sierra Leone and the United Kingdom. The Bank currently employs over 12,000 professionals and has Total assets and Shareholders’ Funds of ₦4.993trillion and ₦837.2billion respectively.

Since commencing operations in February 1991, Guaranty Trust has maintained an unbroken streak of year-on-year growth and a consistent lead in driving the digitization of financial services in Nigeria thanks to its strong service culture, efficient management, world-class corporate governance standards and bias for innovation.

At the end of 2020, alongside leading the industry in innovation and service delivery, Guaranty Trust was the most profitable banking group in Nigeria with best in class Return on Equity and other key financial metrics.

In April 2021, the reorganization of Guaranty Trust Bank Plc to a financial holding company, Guaranty Trust Group Holding Company Plc (GTCo Plc), was completed as part of the company’s strategy to position for future growth and deliver benefits beyond banking to the people, communities and businesses who depend on the value we create to thrive.