Ghana’s second biggest bank, GCB Bank, registered a 17.8% growth in profit for the first nine months of this year to ¢338.2 million.

However, the earnings could have been more if not for a ¢251 million bad loan recorded during the period.  

According to its unaudited Third Quarter 2021 Financial Statement, the growth in profit was due to a substantial increase in interest income, from ¢1.37 billion in September 2020 to ¢1.71 billion in September 2021.

Growth of net trading income, an important income line however declined to ¢122.4 million in the third quarter of 2021, from ¢137.4 million registered during the same period last year.

Shareholders will however enjoy some ¢1.70 earnings per share, higher than the ¢1.40 received in September 2020.

GCB stock is one the top 10 performing on the Ghana Stock Exchange so far this year, as its share price (¢5.37) has gain 32.5% in value since January 1st, 2021.

With regard to the robustness of the bank, non-performing loans went up to 20.5%, far above industry average of about 17.3%.

The balance sheet continued to remain strong as its size grew to ¢32 billion in September 2021, as against ¢29 billion in December 2020.

Capital Adequacy Ratio-a measurement of a bank’s available capital to its Risk Weighted Assets was healthier at 19.90% at the end of September 2021, but slightly lower than industry average of 20.7%.

Liquidity ratio stood at 64% in September 2021, lower than the 69% achieved during the same period last year.

This financial soundness indicators signify a relatively safe, sound and robust bank.

Financial Soundness Indicators

	September 2021	September 2020
Capital Adequacy Ratio	19.90%	18.3%
Non-Performing Loans	20.5%	9.3%
Liquidity ratio	69%	64%