GTBank won’t issue bonus shares to shareholders – Agbaje explains

Group Managing Director of Guaranty Trust Bank (GTBank) Plc, Mr Segun Agbaje, has hinted that the company has no intention to declare bonus shares to shareholders.

Speaking at the lender’s Annual General Meeting (AGM) last week in Lagos, Mr Agbaje explained that this is to prevent over bloating of GTBank shares.

Recall that the bank currently trades its shares on the Nigerian Stock Exchange (NSE) and has a total shares outstanding of 29.4 billion. The company’s stock closed last week on the local bourse at N34.80k per unit, making it have a market capitalisation of over N1 trillion.

At the AGM, the bank chief in place of the bonus shares, the financial institution will continue to offer shareholders impressive dividend.

He said in addition, the lender will continue to invest in empowering small businesses and promoting enterprise.

According to him, the bank will continue to support its communities, large and small by creatively expanding certain flagship Corporate Responsibility programmes such as the GTBank Food and Drink Fair and GTBank Fashion Weekend.

During the meeting, one of the shareholders, Mr Sunny Nwosu, who is the leader of Independent Shareholders Association of Nigeria (ISAN), appealed to the bank to improve its dividend payouts in the years ahead.

However, he commended GTBank for sustaining profit and dividend payment in spite of challenging economy.

According to him, the bank has shown resilience with enhanced profit and sustainable dividend in the 2018 financial year.

Another shareholder, Mr Nona Awoh, urged the bank to map out strategies aimed at reducing its unclaimed dividend figure which stood at N18.23 billion during the period under review.

He said the bank must liaise with its registrars and Investors Relations Officer to bring down the figure.

At the AGM, shareholders of the company approved the payment of a total dividend of N2.75 per share for 2018 fiscal year, comprising a final dividend of N2.45 per unit of ordinary share held by shareholders in addition to the interim dividend of 30 kobo interim dividend earlier paid in June 2018.