• Guaranty Trust Holding Company Plc (GTCO) has injected N365.9 billion ($238.5 million) into its subsidiary, Guaranty Trust Bank Limited (GTBank), to meet new regulatory capital requirements.
• The capital boost, achieved through a fully subscribed rights issue, raises GTBank's share capital to N504 billion, surpassing the Central Bank of Nigeria's (CBN) N500 billion minimum for internationally licensed banks.
• The move positions GTBank for strategic growth, including network expansion and asset portfolio growth, well ahead of the March 31, 2026 compliance deadline.

Nigerian financial group Guaranty Trust Holding Company Plc (GTCO) has injected N365.9 billion (approximately $238.5 million) into its commercial banking subsidiary, Guaranty Trust Bank Limited (GTBank), the company announced on August, 28.

The transaction was completed through a rights issue of 6,994,050,290 ordinary shares, which was fully subscribed by the parent company. This infusion increases GTBank's share capital from N138.2 billion to N504 billion, ensuring its compliance with the new minimum capital requirements mandated by the Central Bank of Nigeria (CBN).

The CBN directive, issued on March 28, 2024, requires commercial banks with an international license to have a minimum capital base of N500 billion by March 31, 2026. With this move, GTBank becomes the tenth bank to meet the requirement, seven months ahead of the regulatory deadline.

In a statement, GTCO said the additional capital will support the bank's strategic growth initiatives. These include expanding its domestic branch network and growing its asset portfolio of loans, advances, and investment securities. The funds will also be used to pursue emerging opportunities in Nigeria and other markets where the holding company operates across West and East Africa.

The recapitalization was facilitated by a two-phase fundraising program approved by shareholders at the 2024 Annual General Meeting. The holding company raised N209 billion in the first phase in July 2024, followed by approximately N230 billion in the second phase a year later.

The capital enhancement follows a period of strong financial performance for the group. As of March 31, 2025, GTCO reported a profit before tax of N300.4 billion, driven by a 41.1% increase in interest income and a 41.2% rise in fees and commissions. During the same period, loans and deposits grew by 15.6% and 7.7%, respectively.

Sandrine Gaingne