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GCB Bank PLC (GCB) recorded strong financial results for the 9-month period ended September 30, 2023.
This was supported by the bank’s strong fundamentals and the successful execution of its strategy to dominate the market.
Total operating revenue grew 30% to ¢2.7 billion compared to the prior year's corresponding period. This benefitted from broad-based growth across all the key revenue lines.
Net interest income and fees & commissions grew by 39% and 11%, respectively, on the back of balance sheet expansion and transaction volume growth. Trading Income grew by 9% to end at ¢332 million. Operating expenses were well contained, showing year-on-year growth of 17%.
The cost-to-income ratio improved from 54.3% to 50.4%. Pre-provision profit was up 50% to close at ¢1.4 billion, reflecting strong revenue growth and disciplined expense management.
The total impairment charge of ¢536 million is largely attributable to the impairment charge on investments in government securities.
Profit before tax increased year-on-year by 18% to ¢832 million.
Total assets grew year-on-year by 21% to ¢25.4 billion. The growth in assets is largely due to a 15 per cent growth in customer deposits from ¢16.2 billion in the prior year to ¢20.5 billion at the end of September 2023. Total gross loans and advances grew 13% to ¢7.8 billion.
Return on Equity markedly improved from -29.7% in 2022 due to the effect of the Domestic Debt Exchange Programme to 34.2% at the end of September 2023.
Commenting on the performance, Kofi Adomakoh, Managing Director of GCB Bank PLC, said, "The robust set of results that we have delivered is testament to the unique strength of our balance sheet, our large and stable core deposit base and executing effectively key initiatives to drive shareholder value".
Mr Adomakoh added, “Our intensified focus on customer experience, investments in our people and digitisation, and a strong focus on transaction banking combined with a relentless focus on cost management will position us to strengthen our balance sheet further and deliver a sustained improvement in profits. We will continue to drive effectiveness in sales to increase our client base, grow profit contribution from our Corporate and Commercial business segments, and further grow our market leadership in the retail banking business’’.
Mr. Adomakoh concluded, ‘’By leveraging our core strengths and relentless execution of our strategy, we have great confidence in our ability to serve customers, exceed their expectations and deliver improved and sustained returns to our shareholders.”
For the past seven decades, GCB Bank has developed strong fundamentals supported by its large and growing customer base and largest network of 186 branches, complemented by its unique digital offerings. The Bank has a diversified business model providing banking solutions to enable individual clients to achieve financial well-being. The Bank also provides loans, investment products, cash management and trade finance facilities to support SMEs, corporates and other organisations.
GCB remains committed to the Environment, Social, and Governance (ESG) agenda and a robust risk management and compliance culture to deliver sustainable performance and meet stakeholder expectations.
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