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GCB Bank has recorded strong profit growth in the first-half of this year, posting a Profit Before Tax (PBT) of GH¢700.5 million.
The strong PBT performance which represent a 35-per cent increase of the prior year performance, was driven by growth in interest income and increase in net fees and commission income.
Managing Director of GCB Bank PLC, Mr Kofi Adomakoh, disclosed this in Accra yesterday during the Bank’s turn of the fact-behind-the figures of the Ghana Stock Exchange said, “a strong focus on sales and transaction banking, growth in the Bank’s client base and growing relationships, stringent credit underwriting standards coupled with cost-effectiveness, strong governance, and effective risk management and control drove the 2024 half year performance.”
“PBT for the period increased by 35 per cent year-on-year to GH¢700.3 million, driven by growth in interest income and supported by a 21 percent year-to-date increase in customer deposits and an increase in net fees and commission income,” Mr Adomakohexplained.
He said the 2024 half year financial performance resulted from the “Bank’s strategic shift to a strong focus on sales, transaction banking and a customer-centric approach.”
Mr Adomakoh disclosed total revenue increased by 5 per cent year-on-year to GH¢1.89 billion in the period under review and net interest income grew by 5 per cent year-on-year to GH¢1.43 billion in 2024, with net fees and commission income also increasing by 28 percent to GH¢245.4 million.
He stated that the increased earnings from electronic services, trade services, processing and facility fees drove the net fees and commission growth over the half-year period and the net trading income contributed GH¢211.8 million to revenue in half-year, 2024.
“The balance sheet also grew substantially in the review period. Total assets surged to GH¢33.20 billion, representing a 22-percent increase year-to-date. A significant deposit growth, which reflects clients’ unwavering confidence in the Banks’ resilience amidst the
prevailing macroeconomic uncertainties, underscored the increase in the balance sheet size,” Mr Adomakoh stated.
Mr Adomakohfurther said”GCB continues to record strong and higher quality earnings as well as improved returns to shareholders despite the challenges and uncertainties in the market combined with intensifying competition.”
Concerning the intended capital raise, Mr Adomakoh indicated that the Bank decided to put the capital raise on hold on the back of strong financial performance in 2023.
He revealed the Bank’s commitment to continue to rebuild capital through future profits while assessing capital requirements on an ongoing basis amidst heightened uncertainties in the operating environment and regulatory developments, and said was committed to maintaining optimal capital levels to support strategic and business objectives in order to drive long-term success and returns for shareholders.
The Managing Director of GSE, Ms AbenaAmoah, in her remarks commended GCB Bank PLC for its sterling performance in the first half of the year.
She noted that since GCB Bank PLC listed on the Accra bourse in 1996, it had been consistent in providing data on its performance to shareholders and stakeholders through the Fact behind the Figures series.
Ms Amoah entreated the corporate bodies in the country to use Accra bourse in order to raise relatively cheap capital instead of debt to finance their business operations, adding that use the GSE to raise funds would help build the capital market in Ghana.
BY KINGSLEY ASARE
The post GCB Bank records strong half-year profit appeared first on Ghanaian Times.
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