John Kofi Adomakoh
SHAREHOLDERS OF GCB Bank Limited are to enjoy a dividend payment of GH¢0.25 per share, representing a 25 per cent increase on what pertained in 2019.
Jude Kofi Arthur, chairman of the board of directors, made this known at the bank’s 27th annual general meeting (AGM) at the weekend in Accra.
According to him, GCB Bank recorded growth in profit-before-tax of GH¢610.83 million from GH¢573.67 million in 2019, up 6.5 per cent attributable to revenue growth while net interest income was up 29.1 per cent, from GH¢1,168.45 million to GH¢1,508.70 million.
Net trading income grew by 17.6 per cent to GH¢166.63 million from GH¢141.75 million whilst net fees and commission income also increased by 15.1 per cent to GH¢277.98 million from GH¢241.51 million.
Operating income increased from GH¢1,572.87 million to GH¢1,967.68 million, reflecting an increase of 25.1 per cent over the prior year. Operating expenses went up by 22.2 per cent from GH¢924.58 million to GH¢1,129.64 million due to COVID-19 related expenditures. The cost income ratio improved to 57.4 per cent compared to 59.1 per cent in 2019.
Our total assets recorded a growth of 23.5 per cent from GH¢12.52 billion in 2019 to GH¢15.45 billion in 2020. The growth was funded mainly from a 21.8 per cent increase in deposits from GH¢9.82 billion in 2019 to GH¢11.96 billion in 2020. Net customer loans increased from 0.3 per cent to GH¢3.81 billion in 2020 from GH¢3.80 billion in 2019. The bank’s equity recorded a growth of 23.0 per cent from GH¢1.78 billion in 2019 to GH¢2.19 billion in 2020.
The Capital Adequacy Ratio of GCB at the end of 2020 was 20.7 per cent, significantly above the prudential requirement of 11.5 per cent. The Return on Average Equity was approximately 22 per cent and earnings per share increased by 3.7 per cent from GH¢1.62 to GH¢1.68.
“Our share price experienced volatility during the year with a high of GH¢5.10 and a low of GH¢3.40, reflecting the lowest price in the last four years. Our share price improved to GH¢4.05 at the end of 2020.
Noting that the bank was strong and well capitalised, he said the bank restructured loans totaling GH¢799.92 million to 130 corporate and SME customers.
In a remark, John Adomako, Managing Director of GCB Bank, assured customers that the bank will “continue to make the relevant investments in technology, digitisation and people to grow our market share of the payments industry in Ghana. Growing revenue from trade finance, cash management and remittances will remain a key area of our strategy to drive non-interest revenue.”