In order to enable Nigeria’s biggest lender by market value, Guaranty Trust Bank (GTB) Plc, consolidate its businesses into a single group, the Nigerian Exchange has halted trading in the shares of Guaranty Trust Bank (GTB) Plc, as the bank moves to transit into a holding company.
The transaction is to enable Nigeria’s biggest lender by market value to consolidate its businesses into a single group, set up payments and asset management subsidiaries.
In a report at the weekend, the Nigerian Stock Exchange explained that the suspension is necessary to prevent trading in the shares of the bank in preparation for the eventual delisting of Guaranty Trust Bank Plc from the Daily Official List of the Nigerian Exchange Limited (NGX) and listing of the Holding Company, Guaranty Trust Holding Company Plc on NGX.
GT Bank is optimistic the metamorphosis will help bolster profitability at a time when lenders are seeing drops in earnings from core banking business, forcing rivals like Access Bank and Sterling to also see a holdco structure as the way to go.
