GTCO Share Price Rises, Shareholders Gain N52bn in Hours Amid Protest Over VDM Arrest

• The shareholders of Guaranty Trust Holding Co PLC smiled on Tuesday as its share price surged
• Data shows that at the closing of trading on NGX, the share price of GTCO shares rose by 4% on Tuesday
• Capital market expert in a chat with Legit.ng explained the performance of the GTCO shares despite social media sentiments

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

Share price of Guaranty Trust Holding Company Plc (GTCO), the parent company of GTBank, surged to its highest level in May on Tuesday, May 6.

According to data obtained from Nigerian Exchange on Tuesday, GTCO shares rose to N65, a 2.44% or N1.55 increase from N63.45 it opened the week.

The latest share price is the highest so far in May.

The market capitalisation of GTCO jumped to N2.21 trillion on Tuesday from N2.16 trillion the previous day.

This means shareholders of the bank recorded a gain of N52.3 billion after hours of trading.

GTCO also retain its number 1 ranking as Nigeria’s largest financial services group by market value.

Online protest made no difference

The gains came following backlash over the forceful arrest of Martins Vincent Otse, popularly known as VeryDarMan, a Nigerian activist, critic, and social media influencer, by the Economic and Financial Crimes Commission outside a GTBank branch in Abuja on Friday, May 2.

Otse had visited the bank to resolve a transaction issue on behalf of his mother before his arrest.

The incident sparked outrage on social media, with users accusing the bank of complicity, an allegation GTBank has not commented on, but a video evidence was released to show that it was outside the bank's premises the arrest took place.

Despite the trending backlash and calls for account closures, investor confidence remained strong.

Speaking to Legit.ng on GTBank's shares movement, Gilbert Ayoola, a lead adviser and the general secretary of the Ibadan Zone Shareholders' Association, explained that there is a clear distinction between public sentiment driven by social media reactions (especially around the arrest of VDM) and the stock market’s valuation.

He noted that the stock market is driven by largely informed fundamentals like earnings, balance sheet strength, and market position.

He said:

"While social backlash can influence short-term brand perception, it doesn't necessarily have a strong or immediate impact on stock prices—especially in a market where many retail protesters may not actually hold shares. The Nigerian stock market, like many others, is often dominated by institutional investors who base decisions more on financial data than social sentiment.

"However, public controversies can sometimes escalate into reputational risks that may eventually affect fundamentals—customer retention, deposit volumes, or regulatory scrutiny. So, while there may not be a need for panic, it’s wise to monitor the situation and use any temporary price weakness as a buying opportunity."

GTCO announces Q1 results

GTCO has released its financial results for the first quarter of 2025, with significant changes in key metrics.

The financial company announced that its Profit before tax for the review period fell to N300.4 billion from N509.3 billion, while post-tax profit shrank to N258 billion from N457 billion.

Revenue also fell to N523.2 billion from N680.5 billion during the period.

However, net interest income, a profitability metric indicating how much banks earn in interest after deducting what they pay savers, jumped by 40.1% to N318.4 billion.

Loan impairment charges fell by 0.5%, reflecting the group’s ability to reduce the cash statutorily reserved to cover borrower defaults, even as its credit exposure rose by 15.6%."

10 banks with the highest customer deposits in 2024

Earlier, Legit.ng reported that Nigerian commercial banks have recorded an increase in customer deposits so far in 2024 despite the economic situation.

United Bank for Africa leads the list, followed by Access Holdings, the parent company of Access Bank.

The CBN has consistently assured Nigerians that banks are safe and funds in customers' accounts are fully secured.

The article was updated with additional information by the head of the business desk, Victor Enengedi.

Source: Legit.ng