GCB Bank approves GH₵0.25 dividend per share for investors
GCB Bank Limited has approved a dividend payment of GH₵0.25 per share for its investors for the 2020 financial year.
The share price shows a rise of 25% from that of 2019, with a total dividend payment of GH¢66 million by Friday, June 18, 2021.
This dividend would be paid to all bank shareholders who are registered in the books of GCB Bank Limited at the close of business on Friday, May 21, 2021.
Among other things, shareholders approved John Kofi Adomakoh as the company’s new Managing Director and Emmanuel Odartey Lamptey as Deputy Managing Director of Operations.
The bank also approved a resolution to change its name from GCB Bank Limited to GCB Bank PLC (Public Limited Company) and amended its constitution in accordance with the Companies Act, 2019 (Act 992).
Addressing the shareholders at the 27th Annual General Meeting, the Board Chairman of GCB Bank Limited, Jude Kofi Arthur, attributed the performance to a “prudent dividend policy that ensures a reasonable return to shareholders whilst maintaining the growth and appreciation of the share value.”
In terms of financial performance for 2020, the bank recorded growth in Profit before Tax of GH¢ 610.83 million from GH¢ 573.67 million in 2019, a percentage change of 6.5%.
Mr Adomako attributed the revenue growth to improved financial results supported by balance sheet growth and income diversification.
The total assets recorded a growth of 23.5% from GH¢12.52 billion in 2019 to GH¢15.45 billion in 2020, realised mainly from a 21.8% increase in deposits from GH¢9.82 billion in 2019 to GH¢11.96.
Mr Arthur noted, “The 2020 Financial Year was a very challenging and difficult one, particularly because of the economic, social and business disruptions occasioned by the COVID-19 pandemic globally.”
He, however, said that the bank’s ambition “is to assume a leadership position in the Wholesale Banking market in addition to our dominance in the Retail Banking market.
Mr Arthur explained that this forms part of the bank’s strategic plan that hinges on three pillars from now on.
These are; revenue growth and profitability, operational resilience as well as talent development and enabling culture.
He assured the shareholders, “We have the capacity to dominate the banking sector in Ghana by leveraging our strong balance sheet, branch network, large and growing client base, improving internal collaboration and our rich heritage as an indigenous Ghanaian Bank.”
Profile of GCB Bank Limited
Founded in 1953, with 27 employees, as the Bank of the Gold Coast, the bank initially focus on serving Ghanaian traders, farmers, and business people, who could not obtain financing from the expatriate banks.
However, when Ghana gained Independence in 1957, the bank re-branded to Ghana Commercial Bank to concentrate on commercial banking. The Bank of Ghana had been created to function as the central bank and banking regulator.
Although wholly owned by the Government of Ghana on the onset, in 1996, when government shareholding stood at 51.17%, the stock of the bank was, listed on the Ghana Stock Exchange (GSE).
In 2013, the bank renamed itself GCB Bank Ltd, with a new brand identity, which was, launched at the end of 2014.
GCB Bank Ltd serves the banking needs of large corporations, parastatal companies, small and medium enterprises, and individuals. As of December 2016, the bank employs 1,532 staff in branches distributed in all 10 regions of the Republic of Ghana.
GCB Bank is the largest bank in Ghana in terms of total operating assets and share of industry deposits, with 14.2% of total industry deposits.
In August 2017, the Bank of Ghana announced that it had approved a Purchase and Assumption transaction with GCB Bank Limited for the transfer of all deposits and selected assets of UT Bank and Capital Bank (Ghana) to GCB Bank Ltd.
The government of Ghana maintains 21.4% shareholding in the bank, while institutional and private investors own the remaining 78.6%.