GCB Bank PLC has posted a remarkable financial performance during the 2023 financial year, indicating resilience following a robust post-DDEP recovery and also laying the foundation for a sustainable future.
The Bank reported a substantial profit before tax of GHS1,547.4 million, transitioning from a loss of GHS743.5 million in 2022. The performance is a demonstration of the strong earning capability of the Bank.
Commenting on the Bank’s performance, Mr. Kofi Adomakoh, Managing Director of GCB Bank PLC (GCB) said “we reported our best ever profit before tax of GHS1,547.4 million in our platinum anniversary year.
“Our strong rebound to profit after the adverse effect of the Domestic Debt Exchange Programme (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 GHS3,784.2 million, marking a 26 percent increase from the previous period’s revenue of GHS3,005.7 million. Net Interest Income (NII) reached GHS2,895.7 million, showcasing a substantial growth of 37 percent compared to the prior financial year.
Net fees and commission income for the year increased by 14 percent to GHS438.2 million compared to GHS385.0 million in 2022.
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 percent from GHS487.2 million in 2022 to GHS425.1 million in 2023 due to lower trading volume.
In 2023, the Bank ended the year with operating expenses totaling GHS 1,814.7 million, indicating a year-on-year growth rate of 11 percent.
The impairment charge for the year decreased substantially by 79 percent settling at GHS 432.9 million in 2023 compared to GHS 2,74.1 million 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 GHS 21,494.4 million in 2022 to GHS 27,155.7 million in 2023, indicating an increase of 26 percent. This growth was primarily driven by an increase in customer deposits by 23 percent to reach GHS 21,781.4 million, compared to the GHS 17,775.1 million recorded in 2022. Shareholders’ funds rose from GHS 1,998.9 million in 2022 to GHS 3,080.1 million in 2023, reflecting a 54 percent increase.
In 2023, the Bank’s financial performance indicators showed a positive trend. The Bank recorded Earnings per share (EPS) of GHS 3.81, Return on Equity (ROE) of 40 percent and Return on Assets (ROA) of 4 percent. The cost-to-income ratio improved to 48 percent from 54 percent, 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 percent, surpassing the regulatory limit of 10 percent and the prior year’s figure of 18 percent.
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.
During the year, the Bank made significant progress in its efforts to drive revenue growth, improve profitability and grow its market share.
The results for the year 2023, therefore, benefitted from internal collaboration, enhanced relationship management and targeted marketing strategies. This helped to increase the customer base across all segments and transaction volumes.
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 GHS6.3 million 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 Bank posted GHS 411.6 million, marking a 37 percent 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 business 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.
