GCB Bank Sees 35% Profit Boost to GHS 700.3 Million in 1H 2024

GCB Bank PLC has announced a strong financial performance for the first half of 2024 (1H 2024), marking a significant improvement over the same period in 2023.

The bank’s impressive results reflect a strategic focus on sales, transaction banking, and a customer-centric approach.

Key Financial Highlights:

• Profit Before Tax (PBT): GCB Bank’s PBT surged by 35% year-on-year (y/y) to GHS 700.3 million, driven by an increase in interest income, a 21% year-to-date rise in customer deposits, and growth in net fees and commission income.

• Total Revenue: The bank’s total revenue rose by 5% y/y to GHS 1.89 billion. Net interest income increased by 5% y/y to GHS 1.43 billion, while net fees and commission income saw a notable 28% increase to GHS 245.4 million, bolstered by earnings from electronic services, trade services, and facility fees.

• Operating Expenses: Operating expenses grew by 17% y/y to GHS 1.08 billion, reflecting inflationary pressures and currency depreciation.

• Impairment Loss: The bank achieved a 70% decline in impairment loss on financial assets, down to GHS 104.8 million, due to enhanced risk management strategies.

  
  

• Balance Sheet Growth: Total assets surged by 22% year-to-date (YTD) to GHS 33.20 billion, supported by significant deposit growth and client confidence.

• Shareholders’ Equity: Shareholders’ equity increased by 15% YTD to GHS 3.22 billion, driven by the higher profit for the period and strengthened financial performance.

• Earnings Per Share (EPS): EPS rose from GHS 2.52 in 1H 2023 to GHS 3.20 in 1H 2024. The Capital Adequacy Ratio stood at 18.5%, exceeding the regulatory requirement, and Return on Equity reached 26.2%.

Strategic Insights:

John Kofi Adomakoh, Managing Director of GCB Bank PLC, attributed the bank’s strong performance to a focused strategy on sales and transaction banking, expanding the client base, stringent credit underwriting standards, and effective risk management. He highlighted that despite market uncertainties and intensified competition, GCB Bank has managed to deliver higher quality earnings and improved returns to shareholders.

Regarding future plans, Mr. Adomakoh revealed that the bank has decided to postpone its capital raise due to the strong financial performance in 2023. Instead, GCB will continue to build capital through future profits while monitoring capital requirements amidst ongoing uncertainties and regulatory changes.

The 1H 2024 results confirm GCB Bank’s position as a pillar of financial stability and resilience, well-equipped to navigate Ghana’s complex financial landscape with confidence and strategic foresight.