Guaranty Trust Holding Company Plc (GTCO) has addressed a wave of false news reports targeting its business activities, financial results, and executive management, calling the allegations baseless and unfounded.
The bank’s reaction is in response to allegations against it in a press conference organised by a group known as GIC.
In a strongly worded rebuttal, the banking giant reassured its customers, shareholders, and stakeholders that it remains committed to transparency and excellence.
GTCO expressed concern over the continuous release of what it describes as “false news articles,” which it says are part of a coordinated effort by certain groups to undermine its reputation. These reports, which have spread through various media platforms, focus on fabricated accusations against the group’s operations and its leadership.
The bank emphasised that it has taken a swift legal action against those responsible for disseminating the false information. GTCO assured the public that it would continue to employ the full force of the law to protect its brand and safeguard the integrity of its operations.
“Being a responsible corporate citizen and a first-class institution, GTCO Plc has taken swift and decisive legal actions against the various sources of these false reports,” the statement read. “We will continue to use the full extent of the rule of law available to safeguard our reputation.”
GTCO denied that its executive management is facing any form of financial or regulatory scrutiny, as falsely claimed in the reports, assuring that its leadership team will continue to operate in their full capacities as originally appointed – without any restrictions or issues.
GTCO urged its customers, investors, and stakeholders to disregard the allegations and remain confident in its operations and leadership. The bank expressed gratitude for the continued support and loyalty of its patrons, vowing to maintain its commitment to integrity and superior service.
GTCO recently released its Audited Consolidated and Separate Financial Statements for the period ended June 30, 2024, to the Nigerian Exchange Group (NGX) and London Stock Exchange (LSE).
The Group reported profit before tax of N1.004 trillion, becoming the first Nigerian financial institution to cross the N1trillion mark in profit. This milestone figure represents an increase of 206.6 percent over N327.4billion recorded in the corresponding period ended June 2023. The Group’s loan book (net) increased by 25.5 percent, from N2.48trillion recorded as at December 2023 to N3.11trillion in June 2024, while deposit liabilities grew by 39.8 percent from N7.55trillion in December 2023 to N10.55trillion in June 2024.
The Group recorded growth across all its asset lines and continues to maintain a well-structured, healthy, and diversified balance sheet across all jurisdictions wherein it operates a banking franchise as well as across its payments, pension and funds management business verticals with total assets and shareholders’ funds closing at N14.5trillion and N2.4trillion, respectively. Capital Adequacy Ratio (CAR) remained very robust and strong, closing at 21.0 percent, while asset quality was sustained as evidenced by IFRS 9 Stage 3 Loans which closed at 4.3 percent in June 2024 from 4.2 percent in December 2023 and improvement in Cost of Risk (COR) to 1.6 percent from 4.5 percent in December 2023.
Commenting on the results, Segun Agbaje, group chief executive officer of Guaranty Trust Holding Company Plc, said: “We are immensely proud of the progress we have made as a leading financial holding company. Despite the uncertainties in the operating environment, our performance in the first half of the year, where we recorded our highest profit to date, is a testament to the resilience and adaptability of our business model. We remain optimistic about the future and are committed to leveraging our unique strengths as a thriving financial services ecosystem to create sustainable value for all our stakeholders as we continue to position all our business verticals–Banking, Funds Management, Pension, and Payments–for rapid growth across key markets.”
GIC Allegations
In a press conference held by the Global Integrity Coalition (GIC), damning accusations were levelled against Guaranty Trust Bank (GTBank) concerning unethical practices in Nigeria. The convener of the conference alleged that one of the most recent corrupt practices linked to the bank involves unsolicited account openings. According to GIC, customers’ sensitive data, such as telephone numbers and Bank Verification Numbers (BVN), have been used without their consent to open accounts. This, the group claims, is a tactic used by the bank to inflate its customer base and project higher profitability.
The GIC warned, “This unsolicited account opening breaches data privacy and exposes over 10,000 customers to identity theft and fraud without their knowledge.” The group also claimed that some customers have threatened to take legal action against the bank.
During the conference, the GIC also accused GTBank of manipulating its financial records. Citing the bank’s recent declaration of a N1.004 trillion profit before tax for the period ending June 30, 2024, the group argued that these figures were inflated. The GIC alleged that the reported figures were fabrications orchestrated by the bank’s management, aimed at deceiving regulatory bodies such as the Central Bank of Nigeria (CBN) and the Financial Reporting Council of Nigeria (FRCN). “There is no substantial evidence to support these profit claims,” the GIC convener stated.
GIC did not limit its accusations to Nigeria. It also referenced penalties levied against GTBank’s UK branch by the Financial Conduct Authority (FCA), highlighting the payment of £525,000 for management failures between 2008 and 2010, and another £10 million fine for repeated breaches of anti-money laundering regulations. “The corporate image of GTBank has been shattered in many foreign countries,” the GIC claimed, questioning the bank’s commitment to compliance with international regulations.
In another revelation, GIC cited the suspension of GTBank Ghana’s foreign exchange trading license for one month in March 2024, due to fraudulent documentation in foreign exchange operations.
GIC recommended the immediate dissolution of the GTBank board and management by the CBN, urging regulators to scrutinise the bank’s financial records. The group also called for the suspension of GTBank’s CEO, Segun Julius Agbaje, and demanded a public hearing by the National Assembly to address the issues raised. Additionally, GIC called on international agencies, including the US Department of Justice and the UK’s National Crime Agency, to shut down GTBank operations in their territories, citing risks of money laundering and terrorism financing.
The GIC emphasised its determination to push for reforms in the Nigerian banking sector, calling on regulatory bodies to act swiftly to protect customers and investors. The convener concluded, “We have the documents to back our claims, and we will ensure this matter is pursued to the very end.”
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