Stakeholders and financial industry experts have reacted to the series of allegations against Guarantee Trust Holding Company (GTCO) Plc.
A civic organisation, Global Integrity Crusade Network (GICN), had on Friday, September 4, 2024, released a private investigative report signed by its president, Edwin Omaga, alleging a series of “unscrupulous, unethical, and criminal activities” against Guarantee Trust Bank Limited, the flagship subsidiary of the GTCO group.
The report, which has been actively circulating in the social media showing the leadership of GICN in a prolonged press conference on the subject matter, highlighted damning allegations of corporate misconduct, which many social media followers have strongly commented on.
However, GTCO has refuted the allegations and described the report as false.
In a statement made available to THEWILL by the group’s head of corporate communications, Charles Eremi, the foremost financial services group said GICN set out to create a false narrative about the GTCO brand and its management.
“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, adding, “We will continue to use the full extent of the rule of law available to safeguard our reputation.”
“Based on the incessant release of false news reports on GTCO’s business activities, results, and management team, it has become necessary to set the records straight and dispel attempts by certain groups to create a false narrative about the GTCO brand and its management.
“The false news articles, which are being sponsored using the media, centre around baseless allegations against the group’s business activities and its executive management.
“We urge all our customers, shareholders, and stakeholders to kindly disregard all the allegations being peddled through various media platforms and handles. All of our executive management team continue to operate in their full capacities as appointed and are not under any financial or regulatory scrutiny as alleged,” the statement reads.
An investment expert and chairman of the Trusted Shareholders Association of Nigeria, Alhaji Mukhtar Mukhtar, condemned the development as a calculated attempt by the GICN group to pull down one of Nigeria’s major financial services institutions.
In a telephone chat with THEWILL, Mukhtar lamented over the deliberate efforts of some people to pull down an institution like GT Bank without considering the consequences—loss of employment, negative impact on investors’ assets and depositors’ funds, as well as the support to the economy through granting loans and advances to customers.
“GT Bank is one of the strongest new generation banks. It has been making profits over the years and paying dividends to the shareholders, providing employment to Nigerians, and giving value to investors. Much as I would not condone wrongdoing, I do not believe that a reputable institution would descend so low to dabble in such wrongdoings it is being accused of,” he said.
He added: “There are better ways of approaching a matter like this, such as petitioning the various regulatory bodies instead of coming to the media to malign a reputable institution like GT Bank.”
National Coordinator, Progressive Shareholders Association of Nigeria, Boniface Okezie, lambasted the accusing group for wrongfully playing the role of the regulator. He noted that banking is a highly regulated sector and that no such misdemeanour could happen in a financial services institution without being detected.
“I watched the press conference online. I do not believe the allegations. Who is the group making the allegation? Are they the regulators of the industry? You don’t call a press conference to malign an institution. It is uncalled for; I do not believe in the rumours being spread by those people, and I urge the public not to believe them either.
“The CBN is there; the NDIC, the Financial Reporting Council—are all there. If a customer has a complaint, he knows where to take it. And that will be resolved. GT Bank is a strategic and important institution in the financial services industry and should not be maligned for any reason,” Okezie told THEWILL by telephone.
In his reaction, Dr. Paul Uzum, a stockbroker and investment expert, urged Nigerians to dispel the rumour being spread against GT Bank. He told THEWILL via telephone that GT Bank is a very strong and strategic bank that cannot be associated with the allegations being peddled by the accusing group.
He said, ‘GT Bank is one of the strategically cut-out banks. If anything happens to GT Bank, the market is gone because we do not have many of its kind in the industry. How many companies do we have like that? They are one of the flagships in the market and cannot be pushed over in terms of performance and corporate governance. The story must have been sponsored by an aggrieved party, but that is not the right way to go about it.”
Sam Ndata, an investment expert and Doyen of the Stockbrokers, urged Nigerians and others not to rush into believing the allegations without proof because that would be injurious to the corporate image of GT Bank.
GTCO reported an impressive result in its H1 2024 performance. It posted a profit before tax of N1.004 trillion, becoming the first Nigerian financial institution to cross the N1 trillion mark in profit. This milestone figure represents an increase of 206.6% over N327.4 billion recorded in the corresponding period ended June 2023.
The group’s loan book (net) increased by 25.5% from N8 trillion recorded as of December 2023 to N3.11 trillion in June 2024, while deposit liabilities grew by 39.8% from N7.55 trillion in December 2023 to N10.55 trillion in June 2024.
