How Segun Agbaje Lost N143.05 million in Three Months, Amid GTCO’s Poor Financial Performance

The last three months has been a disappointing period for investment banker, Segun Agbaje, the Group Chief Executive Officer of Guaranty Trust Holding Company (GTCO), as his total investment in the financial institution fell by -16.5%.

Agbaje lost N143.05 million after his networth in GTCO depreciated from N866.35 million, which he held as of March 1, to N723.29 million as of May 31, according to analysis of his investment performance by Prime Business Africa.

The decline in Agbaje’s investments in GTCO, the parent company of GTBank, was due to investors in the capital market having low confidence in the financial institution he has led since 2011, after the management recorded poor earnings last year.

GTCO’s financial report disclosed the firm generated N447.81 billion in twelve months of 2021, failing to surpass the N455.22 billion it had grossed as earnings the previous year. Profit for the year also declined to N174.83 billion, below the N201.43 billion it posted in 2020.

Note that increased turnover is one of the key factors that entice investors into holding their shares, which causes the value to rise, and when earnings plummets, stakeholders usually exit their funds, which drags share value down.

At the start of March, GTCO’s stock was priced at N26.95kobo per share, however, as the company neared the period it will release its 2021 earnings report, the asset lost -16.32%, crashing down to N22.55kobo at the end of May 2022, as the financial situation in the firm didn’t convince investors enough to hold their stake, rather it triggered an increased sell off, after the earnings was released.

Prior to the release of the financial report late March, investors had been selling off, the poor turnover further encouraged the sell off that caused the slump in GTCO’s share, which in turn, affected the value of Agbaje’s investment in the company, making him lose N143.05 million within three period.

This also cost GTCO N129.49 billion, as the financial company’s market value crashed to N663.67 billion, from N793.17 billion during the three months period under review.

Fakoyejo Olalekan

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