-Plans to convert to a holding company (HoldCo) structure by the first quarter of 2021
Guaranty Trust Bank Plc (GTBank) has started the recruitment process for the role of its chief executive officer currently held by Mr. Segun Agbaje.
The tenure of Agbaje is expected to end next year in line with the Central Bank of Nigeria’s (CBN) tenure limit of a maximum of 10 years for bank CEOs.
The bank also revealed plans to convert to a holding company (HoldCo) structure by the first quarter of 2021
Agbaje disclosed this during the bank’s half-year 2020 investor call yesterday.
Agbaje was appointed chief executive officer of GTBank in 2011.
Speaking on the succession plan, Agbaje explained: “What we are looking for now is a Managing Director for Guaranty Trust Bank Nigeria. The process has started and I have always told people that we have five Executive Directors and so all of them are going through a process at the moment.
“We are working with a consulting firm in the United Kingdom. We are looking at what we think the future would hold and what we think the Nigerian banking industry would look like.
“At the end of the process which would end at the beginning of the fourth quarter have a Managing Director for GTBank Nigeria. So, we are on track. So, succession to GTBank Nigeria is well under control.”
Earlier, while responding to questions from analysts, the bank CEO said the arrangement for a HoldCo was going on very well.
He explained that the bank has been working towards securing all the necessary regulatory approvals such as from the Central Bank of Nigeria (SEC), the Securities and Exchange Commission (SEC), and in other regions.
“In terms of the work we are doing on it, the operational model for the HoldCo is set. You will have the centre, which is the controlling or holding company and you have a couple of business units. Operationally, what you would see is that in terms of HoldCo, we are going to do a one for one exchange, which means that the shares of GTBank would move up to the HoldCo.
“In terms of the bank, operationally we are going to split it into three: You will have Guaranty Trust Bank Nigeria; Guaranty Trust Bank East Africa, almost operating as a region and you will have Guaranty Trust Bank West Africa operating as a region.
“We would then have other business units. The business unit we are looking at commencing with would be Asset Management, a Pension Fund Administrator (PFA), and a payment company. Hopefully this week, we would put in our application for final approval for the payment company.
“For the asset management and the PFA, we are going through a due diligence on an entity as we speak and if we close, they would be together. I believe that we would be ready to go live with the HoldCo, hopefully by the first quarter of next year. Things are going well; we have all the advisers working and we are working on the operating model,” the bank CEO added.
Speaking on the bank’s financial performance, Agbaje expressed confidence to meet the full year expectations set earlier in the year and so maintained its guidance. “We will try to deliver what we promised,” he said.
