Ghana’s second largest bank, GCB Bank posted a year-on-year profit of 25% for the third quarter of this year.

According to its unaudited third quarter results, earnings reached GHS278 million in the nine months of this year, as compared with GHS222 million the previous year.

The strong growth in income resulted in an earnings per share of GHS1.40. This is compared with GHS1.12 during the same period last year.

If not for a high provision for bad debt made, the bank will have recorded a very high income.

It appears GCB Bank was not impacted heavily by covid-19 pandemic because all its income lines grew.

The balance sheet size stood a little above GHS27 billion with customer deposits growing by 34% to hit GHS11.4 billion.

With regard to the robustness of the bank, non-performing loans was low at 9.35%, far below the industry average of 15.5%.

Capital Adequacy Ratio-a measurement of a bank’s available capital expressed as a percentage of a bank’s credit exposures, was way above the industry average at 18.3%.

This financial soundness indicators signify a robust bank.

Financial Soundness Indicators

 September 2020September 2019
Capital Adequacy Ratio18.3%18.3%
Non-Performing Loans9.3%7.1%
Liquid ratio69%60%
Leverage ratio8.1%9.2%