Guaranty Trust Bank (GTB) has appointed new board members as part of its corporate transformation process that will see Nigeria’s biggest lender by market value united alongside its subsidiaries into a business single entity under a parent company.
The bank is now different from a newly-created holding company, to be known by the name Guaranty Trust Holding Company (GTCO).
The group’s board will be chaired by Sola Oyinlola, while Agbaje, who has been moved from his managing director role at GTB, is its new CEO. Cathy Echeozo has been appointed non-executive director, Suleiman Barau and Helen Bouygues are independent non-executive directors, and Adebanji Adeniyi executive director.
Miriam Olusanya, formerly an executive director at GTB, is now the chief executive of the commercial banking unit. The bank’s board is chaired by Ibrahim Hassan.
New directors are Olabode Agusto, Imoni Akpofure, Victoria Adefala, Jide Okuntola and Haruna Musa.
The financial services group’s consolidation involves its operations in 10 countries on the continent and in the United Kingdom, with the new structure opening up the path to establishing asset management and payments units.
“… as part of the restructuring process, the board of GTCO was constituted and the board of GTCO was reconstituted following the retirements of the following directors: (i) Mrs Osaretin Demuren (chairman); (ii) Mr Adebayo Adeola (non-executive director); (iii) Mr Demola Odeyemi (executive director); and (iv) Mr Bolaji Lawal (executive director),” it said in a Wednesday note.
The holdco structure permits GTCO to own controlling stakes in the companies under the group and oversee management resolutions without direct involvement in their regular business.
It provides also a bulwark against risk of exposure in that the parent company is not liable for the loss of any of its subsidiaries in the event of bankruptcy.
“We believe that a holding company will allow us take advantage of new business opportunities in the emerging competitive landscape and strengthen our earnings base,” said incoming CEO Segun Agbaje.
Currently having its moment in the banking industry of Africa’s largest economy, the holding company mode already has FBN Holdings, Stanbic IBTC Holdings and the FCMB Group in its fray while others like Access Bank and Sterling Bank are in the changeover process.