GCB Bank Management at the AGM
GCB Bank PLC has posted a remarkable financial performance during the 2023 financial year, indicating resilience following a robust post- Domestic Debt Exchange Programme (DDEP) recovery and also laying the foundation for a sustainable future.
The Bank reported a substantial profit before tax of GH¢1,547.4m, transitioning from a loss of GH¢743.5m in 2022.
Commenting on the Bank’s performance, Managing Director of GCB Bank PLC (GCB) Kofi Adomakoh, said, “we reported our best ever profit before tax of GH¢1,547.4m in our platinum anniversary year. Our strong rebound to profit after the adverse effect of the DDEP in the prior year is testament to the successful implementation of our strategy and confidence and loyalty of our large and growing client base.
Our relentless focus on improving customer experience and commitment to make a positive impact to all our stakeholders will strengthen our competitive advantage, enable us deliver sustainable and improved returns and dominate the market”.
The Bank achieved strong revenue growth across its business segments, emphasizing its diversified business model amid market challenges. Total revenue for the period reached GH¢3,784.2m, marking a 26% increase from the previous period’s revenue of GH¢3,005.7m.
Net Interest Income (NII) reached GH¢2,895.7m, showcasing a substantial growth of 37% compared to the prior financial year. Net fees and commission income for the year increased by 14% to GH¢438.2m, compared to GH¢385.0m in 2022.
He said growth in client base combined with an intensified focus on transaction banking helped to improve net fees and commission income. However, net trading income dipped 13% from GH¢487.2m in 2022 to GH¢425.1m in 2023 due to lower trading volume.
In 2023, the Bank ended the year with operating expenses totaling GH¢ 1,814.7m, indicating a year-on-year growth rate of 11%.
The impairment charge for the year decreased substantially by 79% settling at GH¢ 432.9m in 2023 compared to GH¢2,74.1m in 2022. The high impairment charge in the prior year reflects losses on government securities arising mainly from the DDEP.
The Bank’s balance sheet improved significantly over the previous year, growing from GH¢21,494.4m in 2022 to GH¢27,155.7m in 2023, indicating an increase of 26%. This growth was primarily driven by an increase in customer deposits by 23% to reach GH¢21,781.4m, compared to the GH¢17,775.1m recorded in 2022.
Shareholders’ funds rose from GH¢1,998.9m in 2022 to GH¢3,080.1m in 2023, reflecting a 54% increase.
In 2023, the Bank’s financial performance indicators showed a positive trend. The Bank recorded Earnings per share (EPS) of GH¢3.81, Return on Equity (ROE) of 40% and Return on Assets (ROA) of 4%.
The cost-to-income ratio improved to 48% from 54%, indicating robust cost optimization and containment despite persistent inflationary pressures and exchange rate depreciation. Furthermore, the Capital Adequacy Ratio (with regulatory forbearance) stood at 19%, surpassing the regulatory limit of 10 percent and the prior year’s figure of 18%.
The 2023 performance exhibits the Bank’s commitment to deliver on its brand promise, “Your Bank for Life”, through a strong focus on its strategic objectives of revenue growth and profitability, operational excellence and people and talent development.
The Bank also invested in a resilient IT infrastructure to support scale, security and reliability.
It additionally rolled out its Leadership Development Programme aimed at preparing employees for leadership roles. This was in line with the strategic objective of “People and Talent Development” which involved the cultivation of talent and nurturing of future leaders.
The Bank’s performance was further cemented by an expanded effort to support its communities and livelihoods with a key focus on youth, the environment, education and health. A total of GH¢6.3m was invested into projects and initiatives which supports its social responsibility agenda. This brought benefit to millions of Ghanaians, guaranteeing them a better future.
GCB’s 2023 performance has certainly laid a solid foundation for a sustainable performance in the years ahead. This is evidenced by the impressive First Quarter 2024 results where the Bankposted GH¢411.6 million, marking a 37% increase compared to the prior year corresponding period.
The outlook of GCB is positive as conveyed by Mr. Adomakoh to shareholders at the 30th Annual General Meeting.
He said “as I look to the future, I do so with a sense of optimism and confidence. Despite economic uncertainties and rapid technological disruption, GCB Bank is well positioned to advance further its market share and viability, leveraging its core strengths to effectively execute our strategy to achieve superior client experience, strong, sustainable and profitable busines growth and operational excellence”.
“We will continue to leverage our respected brand and strategic partnerships and invest to capitalize on emerging opportunities that will strengthen our competitive advantages in 2024 and the years ahead”, concluded Mr. Adomakoh.