GTCO no longer has any forbearance-related loans on its books.
This clarification, which was first disclosed in the bank’s March 2025 audited financial statement, has resurfaced following the Central Bank of Nigeria’s (CBN) June 13 circular directing banks under regulatory forbearance to suspend dividend payments, defer executive bonuses, and halt new investments in foreign subsidiaries.
The CBN said the policy was necessary to ensure banks build stronger capital buffers, improve provisioning, and avoid further balance sheet deterioration.
However, the directive did not name specific banks, leaving the market to speculate which institutions were affected.
This has led to a broader investor reaction, with fears of dividend disruptions spreading even to banks not under forbearance.
Back in March, GTCO stated that it is not affected by the CBN circular, having fully exited all forbearance positions ahead of schedule.
The bank made this clear in its full-year 2024 audited financial results released in March.
The clarification is significant at a time when banks are under scrutiny following the CBN’s blanket directive. GTCO’s early exit from forbearance allows it to continue distributing dividends and pursuing offshore investments without regulatory restrictions.
In its 2024 audited results, GTCO posted a profit before tax of N1.27 trillion, up 107.8% from N609.3 billion in 2023. It declared a total dividend of N8.03 per share, one of the highest in the Nigerian banking industry.
GTCO’s capital adequacy ratio (CAR) stood at a robust 39.3%, while its asset quality remained strong with Stage 3 loans at 5.2% at the group level. The cost of risk was 4.9%, and pre-tax return on equity was a record 60.5%.
In a circular released on Friday, the Central Bank of Nigeria (CBN) ordered all banks benefiting from forbearance on credit exposures or breaches of Single Obligor Limits to suspend dividend payments, defer executive bonuses, and halt new investments in foreign subsidiaries or offshore ventures.