GCB Bank posts strong performance in 2022 despite DDEP, poised for growth in 2023

GCB Bank PLC (GCB) has announced its full-year (FY) 2022 financial results highlighting the Bank’s strong performance despite the impact of the Domestic Debt Exchange Programme (DDEP).

Total Operating Revenue grew by 24 percent to GHS 3.0 billion. This was underpinned by broad-based growth across all the key revenue lines. Net interest income was up 11 percent, and fees & commissions grew 7 percent.

Trading Income was phenomenal with a growth of 208 percent to end at GHS 487 million. Operating costs went up 29 percent recording GHS 1.6 billion on account of inflationary and currency depreciation effects.

Pre-provision profit was up 22 percent to close at 1.4 billion reflecting the good progress the Bank made during the year in executing its strategy.

Profit before tax was however a loss of GHS 743.5 million owing to impairment charge of GHS 2.1 billion. The impairment charge for the year largely reflects the impact of the DDEP on the Bank’s investments holding in government securities.

Total assets grew from GHS 18.4 billion in 2021 to GHS 21.5 billion in 2022. This strong performance was on the back of 28 percent growth in customer deposits which moved from GHS 13.9 billion in 2021 to GHS 17.8 billion in 2022.

Total loans and advances grew 27 percent from GHS 4.3 billion to GHS 5.5 billion in 2022.

Commenting on GCB’s performance, Mr. Jude Arthur, Chairman of the Board of Directors of GCB said, “We started the year 2022 very well with a continued focus on our strategy to drive revenue and profitable growth, enhance the resilience of our balance sheet and reinforce the core strengths of the Bank. In the latter part of the year, specifically on 5th December 2022, the Government of Ghana launched the DDEP”.

“This programme which is intended to pave the way and lay a sound foundation for economic recovery also has a significant impact on the economy and on the financial performance of banks that participated in the programme including GCB. Despite this challenge, I am pleased to inform you that GCB Bank PLC remains a viable business with distinct competitive advantages in the marketplace. Your Bank has strong fundamentals and significant potential for further growth and value creation for its shareholders.”

In spite of the strong headwinds in 2022, GCB’s capacity to generate improved earnings remains strong.

This is evidenced by the Bank’s strong first quarter, 2023 performance where the Bank posted Profit-Before-Tax of GHS 302 million.

Commenting, Mr. Kofi Adomakoh, Managing Director of GCB said “The growth in our revenue reflects our core strengths and continuing focus on executing our 4-year strategy, which began in 2021 to achieve revenue growth and profitability, operational excellence and drive our People and Talent agenda. There is no doubt the recovery of the Ghanaian economy has significant upside for GCB Bank. As a leading bank we are well positioned to benefit from Ghana’s future economic prospects leveraging our core strengths and emerge a stronger bank. This will require a clear plan, like that which we have in place, to restore our capital strength and intensified efforts and focus on accelerating profitable growth, gaining market share and increasing returns for shareholders.”

The Bank’s immediate priority is to rebuild capital through raising equity of GHS1.0 billion. It aims to further improve its capital position through retention of profits and revaluation of landed property.

Going forward the Bank will also pursue the following initiatives to drive shareholder value:

Accelerate revenue growth especially through continued investment in transaction banking, and further expansion in our retail banking market share.

Continued investment in risk management, customer experience and our people § Maintain a tight control on cost and adopt a prioritized and targeted approach to investments with a view to drive improved returns to shareholder.

Over its 70 years of operations, GCB has grown to be a systemically important bank which has exhibited tremendous resilience and resourcefulness to withstand the numerous challenges which has beset the economy of Ghana to date.

The Bank has over the years grown stronger, establishing itself as top-tier player and market leader in Ghana’s banking sector with persistent year-on-year (YoY) growth particularly in recent years to show. The Bank looks forward with confidence and is determined to realise its ambition to dominate the market.