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| GTCO sets record as stock hits ₦100 |
Trading began with strong demand early in the session. By mid-day, GTCO shares hovered around ₦102 to ₦103. This gain reflects a 27% rise for July alone. Rival Stanbic IBTC still lingers just below ₦99, underscoring GTCO’s unique lead.
Market participants point to GTCO’s dual listing on the London and Nigerian exchanges. On July 9, over 2.29 billion ordinary shares began trading in London. The next day, another 2.28 billion shares hit the NGX floor. That move unlocked fresh capital and broadened the investor base.
Strong first-quarter earnings also steered shares higher. Profit before tax reached ₦300.4 billion. Interest income jumped 41.1%, while fees climbed 41.2%. Those figures outpaced forecasts and won plaudits from analysts. Supply constraints and bullish sentiment pushed the price past the century mark.
The NGX Banking Index has climbed over 22% this month. That trend shows deepening interest in bank stocks. Investors reckon the sector will benefit from easing forbearance rules. Mid-June directives forced some banks to suspend dividends, but GTCO cleared its forbearance list by December 2024.
Nigeria’s central bank had asked lenders under forbearance to delay bonus payouts. GTCO’s clean record gave it an edge. It was the only FUGAZ stock to close in the green on June 17, gaining 5.8% as peers fell back. That day marked the start of a fresh bullish leg.
Investors now eye a dividend yield above 15% and return on equity north of 25%. Segun Agbaje, GTCO Group CEO, framed those as targets for 2025. He told reporters the group aims for sustained growth in asset management, payments, and pensions. Such plans reinforce long-term confidence.
Strong demand for African bank stocks abroad also lent support. International funds can now access GTCO shares via London. The broadened share register includes pension funds and global asset managers. Higher foreign participation tends to lift multiples in emerging markets.
The share price burst past ₦90 on July 11, driven by robust trading volume. Over 18 million shares changed hands that day, valued at over ₦1.6 billion. Traders noted heavy buying from institutional desks. The positive flow set the stage for the ₦100 test.
Analysts at Cardinal Stone set a ₦98.91 target weeks ago. They saw room for further upside given GTCO’s strong capital position. The firm recently endorsed GTCO’s $100 million capital raise in London. That funding will back expansion and cushion against economic shocks.
The bank’s London entry followed a 2007 global depository receipt listing. This time, it opted for a direct ordinary share listing. That shift cancels the older GDR program and simplifies mechanics for investors in the UK.
Domestically, GTCO began 2025 at ₦57 per share. By June, the stock had won back nearly two-thirds of its value. The rebound follows a period of muted gains in February. A sharp 12.4% rise in March sparked the recovery. April’s slight dip then gave way to renewed strength in May and June.
Banking sector reforms also helped. The central bank eased lending limits and improved FX liquidity. That supported net interest margins across the board. GTCO leveraged strong loan growth to expand net interest income. These gains will likely underpin further share price gains.
Looking ahead, analysts expect profit growth around 15–20% in 2025. Fee-based businesses like payments and wealth management could drive non-interest income. GTCO’s asset management arm has seen inflows amid low Treasury yields. Higher yields abroad may attract more capital.
However, risks remain. Nigeria’s macro outlook hinges on oil revenue and currency stability. Sudden naira swings could pressure earnings. Loan impairments may rise if the economy slows. Some investors warn of profit volatility. Yet GTCO’s diversified income streams and strong capital buffers offer resilience.
In sum, GTCO’s ₦100 breakthrough crowns months of strategic moves. The dual listing, healthy earnings, and clean regulatory record set the stage. The stock’s run mirrors broader gains in African bank shares. For many traders, GTCO now ranks among the most attractive bank equities on the continent.