GCB Bank’s half-year performance has shown positive results across all financial indices, reiterating the bank’s position as “one of the most profitable and best performing financial institutions in Ghana”, a statement from the bank has said.
The bank delivered an “impressive” Profit before Tax (PBT) of GH¢269m, an increase of 26% over GH¢214m reported in the same period last year, despite a challenging operating environment.
GCB said it continues to deliver superior value for its shareholders. The Bank recorded Return on Equity (ROE) of 41% and an annualised Earning per share (EPS) of GH¢1.41, representing a 25% uplift over the same period in 2015 (GH¢1.13). GCB’s balance sheet remained strong with a 3% growth in Total Assets, to GH¢4.98 billion from GH¢4.84 billion in 2015. Customer Deposits jumped 11% to GH¢3.55 billion from GH¢3.19 billion in 2015 on the back of a successful deposit mobilisation campaign.
Operating expenses were up by 27% at GH¢252 million for the half-year ended 30 June 2016 compared to GH¢198 million for the same period in 2015. However Cost Income ratio dropped from 51% to 49% in 2016.
Impairment provisions on the Bank’s Loans and Advances decreased to due to a release of GH¢5m compared with a charge of GH¢11m for the same period in 2015 due to robust risk management practices and aggressive portfolio monitoring and recovery programmes. The Bank continues to remain adequately capitalised to support its present and future risk profile reflected in a Capital Adequacy Ratio (CAR) of 25% (June 2015: 20%) which is well above the regulatory minimum.
MD Mr. Samuel Sarpong said GCB is poised to take a leadership position in key industry financial indicators. He added that the bank will leverage its branch network and value chain of its valued customers to mobilise and retain deposits while maintaining an aggressive posture on portfolio monitoring & recovery to end the year with very strong performance.
“The bank will continue to invest in the business including the branch network with the roll-out of its new branch design”, he added. The year-end results may, however, be impacted by additional investments in restructuring the organisation to ensure sustainable performance.
Source: ClassFMonline
