Business

2020: GCB Bank records Profit before Tax of GHS610million

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GCB Bank Limited has held its 27th Annual General Meeting (AGM) via a virtual platform for its shareholders to consider and adopt the Reports of the Directors, Auditors and the Financial Statements for the year ended December 31, 2020.

The virtual AGM, which was held on Friday, May 28, 2021 at the Kempinski Hotel in Accra was in compliance with Imposition of Restriction Act 2020 (Act 1012) and the Registrar General’s Department and Securities and Exchange Commission directives and guidance on holding virtual Annual General Meetings.

GCB Bank recorded a Profit before Tax of GHS610.83 million 2020 from GHS573.67 in 2019, a growth of 6.5 per cent and paid a dividend of twenty-five pesewas per share representing an increase of 25 per cent increase.

Commenting on the performance of the Bank, Board Chairman of GCB Bank, Mr. Jude Arthur stated that despite the challenges of the Covid-19 pandemic, the improvement in financial results was supported by balance sheet growth and income diversification.

On the payment of dividend, the Board Chairman stated that GCB was given regulatory approval to pay dividends due to the Bank’s 2020 profits, strong capital and liquidity. 

Commenting on the interventions to alleviate the impact of Covid-19, Mr. Arthur stated that the Bank engaged customers of the Bank, identified those in the hardest hit sectors of the economy and supported them with concessionary rates and moratorium on principal and interest on loan facilities. As a result, the Bank restructured loans totalling GHS 799.92 million to 130 corporate and SME customers. The bank also invested in Personal Protective Equipment (PPE) and broader Covid-19 protocols to ensure the health and safety of clients and employees.

Shareholders participated and voted at the AGM through a dedicated online platform or through an SMS code using a unique token number. The AGM Proceedings was transmitted live on GTV and also streamed across GCB Bank’s social media platforms.

The Bank’s shareholders commended GCB Bank for the introduction of the G-Money digital wallet and encouraged the Bank to continue to expand the G-Money agent network despite reaching one million customers in a year.

At the end of the meeting, shareholders adopted the 2020 audited financials as presented by Deloitte and Touche for the period and approved all resolutions on the agenda which included; the declaration of dividend, re-election of the Board Directors company retiring by rotation, re-election of Directors, ratification of the appointment of two Executive Directors, approval of remuneration of Directors and the authorization of the Directors to fix the remuneration of Auditors. The special resolutions to change the Bank’s name from GCB Bank Limited to GCB Bank PLC and also amend the Bank’s constitution accordingly were also approved.

The new Managing Director; Mr. John Kofi Adomakoh and the new Deputy Managing Director of Operations; Mr. Emmanuel Odartey Lamptey were officially introduced to the Shareholders.

Financial Performance

GCB Bank’s Profit before Tax (PBT) increased by 6.5 per cent to GHS610.83 million in 2020 from GHS573.67 million in 2019 driven by revenue growth.

Net interest income increased by 29.1 per cent; from GHS1,168.45 million in 2019 to GHS1,508.70 million. Net trading income increased from GHS141.75 in 2019 to GHS166.63 million representing an increase of 17.6 per cent.

The Bank also increased net fees and commissions by 15.1 per cent; from GHS 241.51 million in 2019 to GHS 277.98 million.

Operating income increased from GHS1,572.87 million in 2019 to GHS 1,967.68 million representing an increase of 25.1 per cent while operating expenses increased by 22.2 per cent; from GHS924.58 million to GHS 1,129.64 million due to Covid-19 related expenses.

GCB Bank increased its total assets from GHS12.52 billion in 2019 to GHS15.45 billion, representing an increase of 23.5 per cent. The growth was funded largely from a 21.8 per cent increase in deposits from GHS9.82 billion in 2019 to GHS 11.96 billion in 2020.

GCB’s share price ended the year at GHS 4.05, after experiencing volatility during the year with a high of GHS 5.10 and a low of GHS 3.40, the lowest in four years. This was as a result of the strong adverse effect of Covid-19 pandemic on stocks listed on the Ghana Stock Exchange with financial stocks suffering the biggest hit.

GCB’S Digital Journey

Commenting on GCB’s digital journey, the Board Chairman stated that GCB is reconstructing its business model by leveraging on technology to safely deliver customer expectations.

He added that digitization has been at the forefront of the Bank’s agenda from the onset as a key driver for accelerating growth, enhancing shareholder value. He emphasized that GCB Bank is on course to building an organization that is resilient, agile and efficient across all digital platforms to make banking easier and convenient for customers.

He enumerated some of the key initiatives over the past year as; deployment of an advanced mobile banking application, implementation of GhQR and the operation of an in-house switch that makes it possible for the Bank to issue cards instantly across all branches.

Corporate Social Responsibility (CSR)

Mr. Arthur stated despite the difficult operating environment, GCB Bank invested GHS8.04 million in CSR activities for 2020 as compared to 10.37 million spent in 2019. GCB’s CSR focus areas for 2020 were largely in the areas of health, education, sports, financial inclusion and the environment.

He added that having operated in Ghana for over 60 years, the Bank is living it’s “Bank for life” promise and will continue to contribute in making meaningful and impactful change in the country.

Way Forward

Commenting on the way forward, the Board Chairman stated that GCB recognizes the need to stay nimble and innovative in the dynamic banking industry in order to sustain its competitive advantage in 2021 and beyond. He added that despite the fact that the Bank has made good progress over the years, it has refreshed its strategy and sharpened its pillars on three identified pillars: revenue growth and profitability; operational resilience; talent development and an enabling culture.

He stated that GCB Bank’s ambition is to assume the leadership position in the Wholesale Banking Market while strengthening its dominance in the Retail Banking Market by leveraging on the Bank’s strong balance sheet, branch network, large and growing client base, improving internal and external collaborations and the Bank’s rich heritage as an indigenous Ghanaian Bank.

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