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GTBank splashes N12.9bn on shareholders

Posted by By AMECHI OGBONNA on 2008/07/04 | Views: 576 |

GTBank splashes N12.9bn on shareholders


Recapitalization and other reform measures embarked upon by the management of Guaranty Trust Bank Plc have begun to yield positive fruits, especially for investors, as the bank announced a N12.9billion dividend to be shared among its shareholders.

Recapitalization and other reform measures embarked upon by the management of Guaranty Trust Bank Plc have begun to yield positive fruits, especially for investors, as the bank announced a N12.9billion dividend to be shared among its shareholders.

The cheery news was broken by the Chairman of the bank, Owelle Gilbert Chikelu at the 18th annual general meeting held in Lagos on Monday.

According to Chikelu, GTBank would be paying a dividend of 95 kobo per share to shareholders for the financial year ended February 29, 2008, translating to a total payout of N12.9 billion, as against the total dividend of N6.0 billion paid in 2007. The record places GTB among the highest dividend paying financial institutions on the Nigerian Stock Exchange.

Besides the bank's impressive dividend record, the chairman said the board of Guaranty Trust Bank also rewarded its shareholders with a bonus issue of one for every 11 shares held, thereby increasing the bank's total shares to 14.9 billion from 13.7 billion.
Owelle Chikelu attributed the success to the quality and stability of its board over the years and the devotion to duty of the staff, stressing it was an indication that their labour had not been in vain.

He added that the achievements of the bank's subsidiaries had continued to add value to its franchise.
The bank chairman noted that Guaranty Trust Assurance Limited, now in its fourth year of operations had not rested on its oars in its determination to become a dominant player in its industry, as demonstrated by its being assigned an A + rating by Agusto & Co, the highest risk rating given to any company in the Insurance industry. Guaranty Trust Assurance also became the first Nigerian underwriter to publish a profit before tax figure in excess of N 1 billion.

Guaranty Trust Bank (Gambia) Limited maintained its position as the fastest growing financial institution in the Gambian economy with the opening of its sixth branch, while Guaranty Trust Bank (Ghana) Limited also opened two new strategically located branches in the course of the year. In Sierra Leone, the bank's branch network increased to four with the opening of an ultramodern branch in the west-end of Freetown.

During the year under review, the bank upheld its promise of exploring regional and international business environments by adding three new subsidiaries to its brand, including GT Homes Limited, GTBank Asset Management and the landmark achievement of its license to open its wholly owned United Kingdom (UK) subsidiary, Guaranty Trust Bank, UK from the FSA (Financial Services Authority), considered as the strictest financial regulatory authority in the world.

Guaranty Trust Bank Plc was rated AAA (triple A) by Agusto & Co, the country's premier rating agency, AA-(Double A minus) by Fitch and BB-(Double B minus) by Standard and Poor; the best ratings assigned by the two international rating agencies to any Nigerian or West African-based bank.
The Standards Organization of Nigeria (SON) also conferred its International Standards Organization (ISO) 9001:2000 certification on Guaranty Trust Bank Plc, the first bank in Nigeria to receive such, in recognition of the bank's quality management system and conformity with global best practice.
It would be recalled that Guaranty Trust Bank was among the few Nigerian banks that exploited the international financial market to raise fresh capital needed to boost its portfolio locally and internationally.
After successfully raising about $500million Eurobond, the bank followed it at up with another $750 million Global Depository Receipt that oversubscribed in the European financial capitals.
The injection of those funds had since boosted the banks operation and given it stronger financial muscles to engage in bigger ticket transactions.

Meanwhile, the shareholders have affirmed their confidence and support to the board and management of Guaranty Trust Bank following the outstanding result. They pledged their continued loyalty and support to the long-term objectives of the board and management toward making the 18 year old institution the best in the Nigerian banking sector.

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