The shareholders of Guaranty Trust Bank have asked the bank’s management to improve on the transparency level of its annual report.
The concerned shareholders spoke at the 20th annual general meeting held on Wednesday at Eko Hotel, Lagos. They however commended the management and staff for its success during the year ended 31 December, 2009 in the wake of the banking crisis. Some of the shareholders who spoke at the meeting said that the annual report’s structure was unimpressive and could be improved upon, especially in the area of loans granted during the last financial year.
They also noted that the bank should work on expanding its branch network to meet the requirements of its customers as queues were now fast becoming the trademark of the bank particularly in some branches. They also asked to be allowed to speak for themselves at annual general meetings, without being helped by any president of a shareholders association.
The shareholders however expressed their appreciation on the dividend and bonuses announced by the bank as in comparison, some banks neither declared dividends nor gave bonuses due to losses.“We are not perfect, and the environment we work in is not perfect either, but very challenging,” said Tayo Aderinokun, managing director of the bank, in response to the shareholders’ concerns. “We were in an extraordinary situation last year.”The bank’s directors recommended the payment of dividend of 75k per share compared to N1 for the financial year ended December 2008. It also declared a bonus issue of one for every four shares held.
Potential for growth
Afrinvest, a finance firm, however, said in a report that it expects the bank to demonstrate a healthy potential for earnings and growth.“We expect Guaranty to further leverage on its strong brand and its perceived conservative business model that has hitherto earned the bank its customers’ loyalty,” the report said.
“We anticipate that the bank will capture more market share especially in mobilizing deposits to further support risk assets origination which will in turn increase current levels of profitability and consolidate its stand as one of the most profitable banks in Nigeria.We are positive on the bank’s outlook as we expect it to maintain its history of strong asset growth; we are however concerned with the velocity of liability generation (growth in deposits) which needs to be at par with asset growth.”