Managing Director of the Ghana Commercial Bank (GCB), Mr. Kofi Adomakoh, has disclosed that, the bank experienced significant growth in 2020.

According to him, despite the impact of the pandemic, the bank performed “reasonably well”.

He made this revelation at the ongoing 27^th Annual General Meeting by the Bank for the 2020 financial year. Mr. Adomakoh noted that, the bank was able to make appreciable progress in achieving their goal for the year.

“The year was a very challenging and difficult one, particularly because of the economic, social and business disruptions occasioned by the COVID-19 pandemic. Your bank at that time adapted quite well to the challenges by adopting proactive solutions to mitigate the impact of the pandemic. As a result, we were able to make progress towards our primary goal of providing convenient and accessible product and services to customers and delivering strong returns to our shareholders”.

In highlighting some key global event that shaped the year under review, Mr. Adomakoh intimated that, the pandemic brought its own volatility to stock markets and oil prices.

“Emerging markets and developing economies faced numerous economic headwinds as they struggled with loss of tourism, dwindling remittances, subdued capital flows and tight financial conditions amid rising debt levels across the globe”.

Growth recorded for 2020 financial year

Commenting on the growth of the bank in their financials, Mr. Adomakoh maintained that their growth was due to revenue growth.

“Despite the challenges of the COVID-19 pandemic, your bank [GCB] performed reasonably well for the year under review. The improvement in financial results was supported by balance sheet growth and income diversification. We recorded growth in profit before tax of GHC 610.83,000,000 from GHC 573. 67,000,000 in 2019, representing a 6.5% increase, which was mainly attributable to revenue growth.

“Net interest income was up 29.1%, from GHC1.168 billion to GHC1.508 billion. Net trading income grew by 17.6% to 166.63 million from 141.75 million the previous year, whiles net fees and commission income also increased by 15.1% to GHC 277.98 million from GHC 241. 51 million. Operating income increased from 1.572 billion to 1.96 billion, reflecting an increase of 25.1% over the previous year”.

He further revealed that the bank’s operating expenses went up by 22% from GHC 924. 58 million to GHC 1.12 billion due to COVID-19 related expenditures. However, the cost income ratio improved to 57.4% compared to 59.1% in 2019.

“Our total assets recorded a growth of 23.5% from GHC 12.52 billion in 2019 to GHC 15.45 billion in 2020. The growth was funded mainly from a 21.8% increase in deposits which went up from GHC 9.8 billion in 2019 to GHC 11.96 billion in 2020”.

GSE affected by the pandemic

Mr. Adomakoh further highlighted the impact of the pandemic on the Ghana Stocks Exchange, which he explained, heavily impacted stocks performance. He further emphasized that the financial stocks were also “significantly affected”.

“Our shares prices experienced volatility during the year with the high of GCH5.10p and a low of GHC3. 40p”.

That notwithstanding, the MD for GCB described the bank as “strong and well capitalized for our business mix and risk profile”.

As such, they will continue to “deliver best class return on equity” and make “appropriate investments in our people”. This, he explained, will help the bank serve its clients better.