Rescuing GTCO’s stock price
GTCO has a share buyback option

Key questions this article answers:

  1. Despite being a top bank in Nigeria (in terms of profitability and asset size), GTCO’s stock price has persistently declined since 2020. What can management do to deliver improved value to its shareholders? 

  2. Companies typically have four major options to deliver value: invest in capital projects (that’ll increase profits in the future), pay cash dividends, acquire another company or business, or undertake a share buyback. Can a share buyback be the answer to GTCO’s woes?

 

2022 was not the best year to be a Nigerian bank's Chief Executive Officer (CEO).

Higher costs (due to the Central Bank of Nigeria’s policies and inflation) diminished banks’ ability to make profits, leading to a selloff on banking stocks. For instance, First Bank posted a 71% y/y rise in regulatory costs to ₦52.5 billion in H1’22 (versus ₦30.7 billion in H1’21). Collectively, the Nigerian banking equities index lost 1.8%

This story is only available to Premium subscribers Subscribe or sign in to finish reading

Not ready to subscribe? Register to read a selection of free stories

Yomi Ajayi

Yomi Ajayi

Read Latest

Private Capital in Africa 2025: Côte d'Ivoire’s Investment Trends & Outlook

PREMIUM - 13 MAR 2025

Technology Transaction Brief: Vumatel Completes the Full Acquisition of South African Fibre Company, Herotel

PREMIUM - 13 MAR 2025

March 2025 Africa Macro Outlook

PREMIUM - 12 MAR 2025

Industrials Transaction Brief: Everlectric Secures Funding from Edge Growth through FNB-backed Vumela Fund

PREMIUM - 12 MAR 2025

Download our mobile app for a more immersive reading experience

Scan QR code
mobile download