How GTCO Shareholders Lost N163.34 billion, Amid Declining Investor Confidence

Shareholders of Guaranty Trust Holding Company (GTCO) lost -21.15% of their investment in the financial institution, as the Segun Agbaje-led firm loses investors’ confidence.

GTCO stock had began January at N26 per share, but in the last six months, investors have been dumping their stakes to take out their investment as they become pessimistic over the firm’s growth prospect.

In expectation that Guaranty Trust’s share will fall in the near-to-mid term period, investors engaged in a sell off that pushed GTCO into a bear market in H1, wiping off -21.15% from the share price, which closed June with N20.50kobo, against January opening price of N26.

This led to individuals and institutional companies holding GTCO shares to lose about N163.34 billion between January to June, with the lender’s market capitalisation dwindling to N601.86 billion, from N765.21 billion.

This means an investor that spent N2.6 million to purchase 100,000 shares of GTCO at the cost of N26 per share on January 4, has lost over N500,000 in investment within six months.

Investors declining confidence in GTCO comes amid the firm’s banking business reporting a rather poor performance, as Q1 Profit After Tax was N43,20 billion, with GTBank management failing to surpass the N45.54 billion recorded for Q1 2021.

The company, led by Miriam Olusanya, also didn’t make it into the best five performing commercial banks in Nigeria based on Net Interest Income, settling for the ninth position.

Going into the period when Q2 financials will be released, investors are not impressed enough to hold the firm’s shares, hence, the poor performance in the capital market in H1.