Guaranty Trust Holding Company Plc (GTCO) has injected a massive ₦365.85 billion into its flagship subsidiary, Guaranty Trust Bank Limited (GTBank), ensuring the lender meets the Central Bank of Nigeria’s (CBN) new recapitalisation benchmark for banks with international authorisation.

The move, disclosed in a regulatory filing on Friday and signed by Company Secretary Erhi Obebeduo, was executed through a rights issue that saw nearly 7 billion ordinary shares of GTBank issued to GTCO.

With the transaction, GTBank’s share capital has surged from ₦138.186 billion to ₦504.037 billion — comfortably above the CBN’s mandated minimum of ₦500 billion.

“Through this capital injection, the share capital of GTBank has been increased from ₦138.186 billion to ₦504.037 billion and ensures the bank’s compliance with the new minimum capital requirement,” the statement read.

Strengthening Balance Sheet Before 2026 Deadline

The recapitalisation comes amid a sector-wide scramble to comply with the CBN’s directive issued in March 2024, which compels commercial banks to shore up their capital bases by March 2026. The policy followed economic headwinds, including the naira’s sharp devaluation and rising inflation.

With this development, GTBank joins tier-1 lenders Access Bank and Zenith Bank in crossing the new capitalisation line, further consolidating its place among Nigeria’s strongest banks.

Capital to Drive Expansion and Innovation

GTCO confirmed that the fresh equity will be channelled into branch network expansion, loan and investment growth, and the reinforcement of GTBank’s technology infrastructure. The bank also plans to explore opportunities across Nigeria and its international markets.

“The additional equity capital will be deployed by GTBank primarily for branch network expansion, asset growth, and fortification of its information technology infrastructure,” GTCO stated.

The recapitalisation programme had been approved at GTCO’s 2024 Annual General Meeting and executed in two phases with full regulatory clearance. Following the allotment, GTCO retains 100% ownership of GTBank.

Sector Outlook

The CBN’s recapitalisation drive is reshaping Nigeria’s financial sector, with at least eight banks already meeting the new requirements. Others are actively exploring mergers and acquisitions to stay competitive.