GTBank Delisted on NGX as it Transitions to Holding Company

Guaranty Trust Bank (GTB) Plc has formally transited from its standalone commercial banking structure to a holding company (Holdco) structure.

Consequently, GTB has been delisted from the Nigerian Exchange (NGX) and substituted with the emergent holding company, Guaranty Trust Holding Company (GT HoldCo) Plc.

In November 2020, Guaranty Trust Bank (GTBank) notified the Exchange that it had obtained regulatory approval-in-principle (AIP) to restructure into a financial holding company (Holdco), which was approved later by the bank’s shareholders.

The investors gave their approval to the company for the transfer of the 29,431,179,224 ordinary shares of 50kobo each in the issued and paid-up share capital of the bank held by them to Guaranty Trust Holding Company Plc.

Meanwhile, the Nigerian Exchange announced to the investing public last Friday that it had suspended the trading of GT Bank plc shares ahead of its intention to delist from the NGX to list Guaranty Trust Holding Company Plc. The stocks were admitted on the exchange on Thursday, June 24, 2021.

Following the introduction of the HoldCo model, the CBN gave banks the option to either bring all their non-core banking businesses under a parent company in the new arrangement or divest from such businesses and face their core banking businesses. Other banks like FBN Holdings Plc, Stanbic Holdings Co Plc, and FCMB Group Plc chose to adopt the first option.

The advantage of adopting a HoldCo structure is strengthened revenue diversification, value creation, earnings growth, and therefore, higher returns on investment for the shareholders.

GT Bank plans to diversify into payment service banking (PSB), asset management business, and pension fund administration (PFA) without any distractions to its core banking business.