GTB assets base hits N1trillion

GTB assets base hits N1trillion

Written by Kayode Ekundayo, Lagos, on 27-06-2008 00:00
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Guaranty Trust Bank (GTB) management said on Wednesday that the bank’s asset base has risen to N1 trillion, 76 per cent increase above the previous year’s N603 billion.
Besides, the management also disclosed that the bank’s subsidiary in Sierra Leone also recorded significant growth as its shareholders’ funds grew to $6.5 million in 2007 against $2.2 million recorded in the proceeding year, about 195 per cent growth.
According to the bank’s general manager, finance and strategy Demola Odeyemi, the bank’s total shareholders’ fund increased by 240 per cent from N47 billion in 2006 to N160 billion.
The increased, Odeyemi explained was as a result $750 million offer for subscription of global depositary receipts(GDR) which, he said was over subscribed while the bank’s market capitalization has also risen to N499 billion.
In July 2007, the bank had issued 73,588,313 units of GDR to both foreign and local investors. The GDR was issued at $11.2 per GDR and 1 GDR is equivalent to 50 units of the bank’s ordinary shares.
The net proceeds of N99.1 billion received by the bank, according to Odeyemi has been accounted for in the share capital account.
"We became the first African bank and first Nigerian company to be listed on the main market of the London Stock Exchange following the success of our $750 million offer for subscription of Global Depositary Receipts (GDRs). So far we have recorded several milestones in our journey towards becoming a global bank," he said.
He said though the bank is meticulous in granting loans, it has been able to grow its loan by 140 per cent and at the same time reduce its non performing loans ratio by 36 per cent.
With 130 branches nationwide, Odeyemi said the bank is the sixth largest providers of ATM in the country, adding that despite the expansion, there have been challenge of increasing cost of doing business in Nigeria and other cost pressures.
He said the bank’s shareholders currently stands at 325,000 and that the bank’s board of director has approved the launch Guaranty Trust Bank operations in Monrovia, Liberia and other Francophone West Africa countries.