GCB Bank achieves strong performance in 2022 despite DDEP impact – Board Chair

GCB Bank PLC (GCB) has released its full-year (FY) 2022 financial results, demonstrating a robust performance despite the challenges posed by the Domestic Debt Exchange Programme (DDEP).

The bank reported a significant growth of 24 percent in Total Operating Revenue, reaching GHS 3.0 billion.

This growth was driven by strong performance across all key revenue lines.

Net interest income increased by 11 percent, fees & commissions grew by 7 percent, and Trading Income showed exceptional growth, surging by 208 percent to GHS 487 million.

However, operating costs increased by 29 percent, totaling GHS 1.6 billion, mainly due to inflationary and currency depreciation effects.

Pre-provision profit rose by 22 percent, closing at GHS 1.4 billion, indicating the Bank’s positive progress in executing its strategy.

Despite these achievements, GCB Bank incurred a loss of GHS 743.5 million in profit before tax, primarily attributed to an impairment charge of GHS 2.1 billion.

This impairment charge reflects the impact of the DDEP on the Bank’s investments in government securities.

The bank’s total assets demonstrated strong growth, increasing from GHS 18.4 billion in 2021 to GHS 21.5 billion in 2022.

This performance was supported by a 28 percent growth in customer deposits, which rose from GHS 13.9 billion to GHS 17.8 billion, and a 27 percent increase in total loans and advances, reaching GHS 5.5 billion.

Jude Arthur, Chairman of the Board of Directors of GCB, commented on the Bank’s performance, stating, “Despite the significant impact of the DDEP on the financial performance of banks, including GCB, we remain a viable business with distinct competitive advantages in the marketplace. GCB Bank PLC possesses strong fundamentals and significant potential for further growth and value creation for its shareholders.”

Despite the challenging environment in 2022, GCB Bank maintains its ability to generate improved earnings.

This is evident in the Bank’s strong performance in the first quarter of 2023, where it reported a Profit-Before-Tax of GHS 302 million.

Mr. Kofi Adomakoh, Managing Director of GCB, acknowledged the growth in revenue and attributed it to the Bank’s core strengths and execution of its 4-year strategy, initiated in 2021. Adomakoh emphasized the Bank’s advantageous position to benefit from the future economic prospects of Ghana, highlighting the need for a clear plan to restore capital strength, accelerate profitable growth, and increase returns for shareholders.

Rebuilding capital through raising equity of GHS 1.0 billion stands as the Bank’s immediate priority.

Additionally, GCB aims to enhance its capital position through profit retention and revaluation of landed property.

Moving forward, the Bank intends to pursue initiatives to drive shareholder value, including accelerating revenue growth, investing in risk management and customer experience, maintaining cost control, and prioritizing targeted investments.

Over its 70 years of operations, GCB Bank has demonstrated resilience and resourcefulness in overcoming numerous economic challenges in Ghana.

The Bank has solidified its position as a top-tier player and market leader in the country’s banking sector, exhibiting consistent year-on-year growth. GCB Bank looks ahead with confidence, determined to achieve its ambition of market dominance.

Source: Ghana Business