GTCO logo, Segun Agbaje
Victory Oghene
One of Nigeria’s leading financial institutions, Guaranty Trust Holding Company Plc has denied allegations that its banking subsidiary falsified its accounts to declare a historic N1tn profit before tax in the first half of 2024.
The bank denied all allegations against it in a filing on Monday.
GTCO posted a record-breaking half-year revenue of N1.39tn between January to June 2024, up from N672.6bn recorded in the corresponding period of 2023.
The lender declared a surprise N1tn pre-tax profit and profit after tax of N905.5bn which raised doubts among stakeholders.
Although the bank was praised for its performance, the President of Arewa Consultative Movement, Alhaji Yusuf Kabir, signed a petition demanding a forensic audit of GTB and suspension of its Chief Executive Officer, Segun Agbaje, to allow for a comprehensive audit of the financial report.
A group Ethnic Youth Leaders’ Council of Nigeria (EYLCN) recently backed the move by the House of Representatives to probe the management of GTB over allegations of fictitious N1tn profit and questionable deductions from customers.
EYLCN said, “Allegations have surfaced against Mr Segun Agbaje, the Managing Director of Guaranty Trust Bank (GTBank), and the institution itself. “These allegations include money laundering, corruption, round-tripping, and questionable financial practices that warrant immediate attention from regulatory bodies.
“Allegations Against Mr Segun Agbaje and GTBank Fictitious Profit Claims: Recent reports have indicated that GTBank may have reported fictitious profits of 1 trillion Naira.
“This raises significant concerns regarding the authenticity of their financial statements and whether these figures were manipulated to mislead stakeholders.”
Reports have also alleged that the operations of the bank are shrouded in secrecy.
But GTB in a statement denied wrongdoings and described the reports and allegations as “false news reports on GTCO’s business activities, financial results and its management team.”
GTCO said its executive management is not under financial or regulatory scrutiny as alleged.
The bank said, “It has become necessary to set the records straight and dispel attempts by certain groups to create a false narrative about the GTCO Brand and its Management.
“The false news articles which are being sponsored using the media, centre around baseless allegations against the Group’s business activities and its Executive Management.
“Being a responsible corporate citizen and a first-class institution, GTCO has taken swift and decisive legal actions against the various sources of these false reports and will continue to use the full extent of the rule of law available to safeguard its reputation.”
