Guaranty Trust Holding Company (GTCO) has assured shareholders that it will continue to increase dividends in 2026 and said its foreign subsidiaries are financially independent.
The assurance was given at the company’s fifth Annual General Meeting held virtually on Tuesday.
Group Chief Executive Officer Segun Agbaje said the company remains committed to rewarding both institutional and retail investors.
“We have two types of investors, with different expectations. Institutional investors for capital appreciation and retail investors for dividends. We are focused on balancing both capital appreciation and increasing dividends. This is not a short-term goal but a long-term commitment,” he said.
He added that the company plans to maintain yearly growth in dividend payouts.
“Our strategy is simple, we continue to grow dividends year on year. As long as we are in business, the dividend payout will keep increasing,” Mr Agbaje said.
GTCO shareholders also asked about the operations of the group’s subsidiaries outside Nigeria and whether they depend on support from the parent company.
Responding, Agbaje said the foreign businesses operate with their own capital and retain profits made in their markets.
“There is absolutely no reliance on group capital. All the entities outside Nigeria stand on their own. We retain the profit generated in those regions and do not import or export risk between subsidiaries. Each subsidiary is financially independent,” he said.
He said the arrangement allows the subsidiaries to grow without fresh capital injections from Nigeria.
Shareholders also raised concerns over GTCO’s loan exposure to the oil and gas sector and the possible effect on earnings.
Agbaje said the group understands the risks and manages them according to the different segments of the sector.
“We understand the concerns regarding our exposure to the oil and gas sectors. However, it is important to note that the risks in this sector are very different depending on whether we are dealing with upstream, downstream, or gas-related operations,” he said.
He added that the company applies separate risk management measures to each segment.
“We manage these risks very carefully, and our strategy ensures that we are well-positioned even in times of market volatility,” he said.
Agbaje also said GTCO is taking steps to improve performance through cost management, stronger digital channels and expansion of retail banking.
“We will continue to diversify our revenue streams and innovate in areas such as asset management and pension services to offset these challenges. While the outlook remains cautious, we are confident that these strategies will position us for improved performance in the coming years,” he said.
At the meeting, shareholders approved the company’s 2025 financial statements, final dividend and the re-election of directors.
