GCB records marginal increase as profits hit GHC 445.4m
GCB Bank Limited has posted a four percent rise in profit after tax for 2020 compared to pre-COVID levels.
The group recorded GHC 445.4m in the year where the COVID-19 pandemic was at its peak affecting loan payments by clients as against GHC 428.5m for the previous year.
Due to strong growth in earning assets, the group was able to gain a 30 percent increase in net interest income to GHC1.5billion.
Total shareholders’ equity also registered a jump of 23 percent to 2.2 GHC billion.
Customer’s deposits hit a 56% rise to GHC 2.1 billion due to confidence in the sector.
Total assets of the group grew by 23 per cent to GHC15.5 billion likewise total liabilities rose by a similar percentage to GHC 13.2 billion.
Even though the group’s assets outstrip debt, its financial health remains a concern as its debt ratio remains high.
The Bank remained solid, with strong liquidity and capital adequacy above the minimum regulatory limits.
The capital adequacy ratio has risen to 20.7 per cent just as the liquidity ratio to 64 per cent.
The Non-Performing Loans (NPLs) increased to 8.7%.
About GCB Bank Limited
The bank was founded in 1953, with 27 employees, as the Bank of the Gold Coast.
Initially, it focused on serving Ghanaian traders, farmers, and business people, who could not obtain financing from the expatriate banks.
In 1957, when Ghana attained Independence, the bank re-branded to Ghana Commercial Bank, to concentrate on commercial banking, since the Bank of Ghana had been created to function as the central bank and banking regulator.
In the beginning, the bank was wholly owned by the Government of Ghana. However, in 1996, when government shareholding stands at 51.17%, the stock of the bank was listed on the Ghana Stock Exchange.
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 as well as 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 the remaining 78.6% is owned by institutional and private investors.