The Financial Results for the Full Year (FY) 2022 has been released by GCB Bank PLC (GCB), which reflect the Bank’s outstanding performance despite the impact of the Domestic Debt Exchange Programme (DDEP).
GCB’s Total Operating Revenue increased by 24 percent to GHS 3.0 billion. This was supported by consistent growth across all the major revenue streams. Fees and commissions increased by 7%, while net interest income increased by 11%.Trading Income exceeded expectations, increasing by 208% to reach GHS 487 million.
Operating cost went up 29 percent recording GHS 1.6 billion on account of inflationary and currency depreciation effects. Pre-provision profit was up 22 percent to close at 1.4 billion reflecting the good progress the Bank made during the year in executing its strategy.
Profit before tax was however a loss of GHS 743.5 million owing to impairment charge of GHS 2.1 billion. The impairment charge for the year largely reflects the impact of the DDEP on the Bank’s investments holding in government securities.
Total assets grew from GHS 18.4 billion in 2021 to GHS 21.5 billion in 2022. This strong performance was on the back of 28 percent growth in customer deposits which moved from GHS 13.9 billion in 2021 to GHS 17.8 billion in 2022. Total loans and advances grew 27 percent from GHS 4.3 billion to GHS 5.5 billion in 2022.
Mr. Jude Arthur, Chairman of the Board of Directors of GCB, commented on the company’s performance, saying, “We started the year 2022 very well with a continued focus on our strategy to drive revenue and profitable growth, enhance the resilience of our balance sheet and reinforce the core strengths of the Bank.”
The DDEP was introduced by the Ghanaian government. The economic recovery and the financial performance of the participating banks, including GCB, have both been significantly impacted by this program, which aims to clear the path and establish a solid basis for it.
“Despite this challenge, I am pleased to inform you that GCB Bank PLC remains a viable business with distinct competitive advantages in the market place. Your Bank has strong fundamentals and significant potential for further growth and value creation for its shareholders.”
Mr. Jude Arthur
GCB Poised For Growth In 2023 And Beyond
Commenting, Mr. Kofi Adomakoh, Managing Director of GCB said “The growth in our revenue reflects our core strengths and continuing focus on executing our 4-year strategy, which began in 2021 to achieve revenue growth and profitability, operational excellence and drive our People and Talent agenda.”
“There is no doubt the recovery of the Ghanaian economy has significant upside for GCB Bank. As a leading bank we are well-positioned to benefit from Ghana’s future economic prospects leveraging our core strengths and emerge a stronger bank.
” This will require a clear plan, like that which we have in place, to restore our capital strength and intensified efforts and focus on accelerating profitable growth, gaining market share and increasing returns for shareholders.”
Mr. Kofi Adomakoh
According to the MD, the Bank’s immediate priority is to rebuild capital through raising equity of GHS1.0 billion, and further improve its capital position through the retention of profits and revaluation of landed property.
“Going forward, the Bank will also pursue initiatives to drive shareholder value. These initiatives include accelerating revenue growth through continued investment in transaction banking, and expansion in our retail banking market share.
“There will be continued investment in risk management, customer experience and our people. The Bank will maintain a tight control on cost and adopt a prioritized and targeted approach to investments with a view to drive improved returns to shareholder.”
Mr. Kofi Adomakoh
Regardless the strong headwinds in 2022, GCB’s capacity to generate improved earnings remains strong. This is evidenced by the Bank’s strong first quarter, 2023 performance where the Bank posted Profit-Before-Tax of GHS 302 million.
In its 70 years of operation, GCB has developed into a systemically significant bank that has shown incredible fortitude and inventiveness to endure the myriad difficulties that have plagued Ghana’s economy to date.
With consistent year-on-year (YoY) growth, especially in recent years, the Bank has become stronger over time, establishing itself as a top-tier player and market leader in Ghana’s banking sector.
