Guaranty Trust Holding Company Plc (GTCO) has announced a significant capital injection of N365.85 billion into its flagship banking subsidiary, Guaranty Trust Bank Limited (GTBank), as part of efforts to meet the Central Bank of Nigeria’s (CBN) new capital requirements for banks with international authorization.
The move, disclosed in a regulatory filing on Friday and signed by Company Secretary Erhi Obebeduo, was executed through a rights issue involving the issuance of nearly 7 billion ordinary 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 minimum of N500 billion for internationally licensed commercial banks.
“Through this capital injection, the share capital of GTBank has been increased from N138.186 billion to N504.037 billion and ensures the bank’s compliance with the new minimum capital requirement for commercial banks with international authorisation stipulated by the Central Bank of Nigeria,” the statement read.
The capital raise comes amid a sector-wide race to comply with the CBN’s recapitalisation directive issued in March 2024.
The directive requires commercial banks to bolster their capital bases by March 2026, following economic headwinds including the naira’s sharp devaluation and persistent inflationary pressures.
GTBank now joins tier-1 lenders Access Bank and Zenith Bank in meeting the new capital threshold, reinforcing its position in Nigeria’s banking landscape. The injection not only secures GTBank’s international banking license but also positions it for strategic expansion.
GTCO confirmed that the additional equity will be deployed to expand GTBank’s branch network, grow its asset base, including loans and investment securities, and enhance its information technology infrastructure. The bank also aims to leverage emerging opportunities across Nigeria and other markets where it operates.
“The additional equity capital will be deployed by GTBank primarily for branch network expansion and asset growth (loans/advances and investment securities portfolio), fortification of its information technology infrastructure, and to leverage emerging opportunities in Nigeria and the operating environments where it maintains banking presence,” GTCO stated.
The recapitalisation programme was approved at GTCO’s 2024 Annual General Meeting and executed in two phases with full regulatory clearance. Following the allotment, GTCO retains 100per cent ownership of GTBank.
The CBN’s recapitalisation push has become a defining theme in Nigeria’s financial sector, aimed at building a more resilient banking system.
As of July, CBN Governor Olayemi Cardoso confirmed that at least eight banks had met the new requirements, while others continue to explore mergers and acquisitions to remain competitive.
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