GCB Bank PLC doubles dividend to shareholders

GCB Bank PLC, a leading indigenous bank, has announced the payment of a final dividend of fifty pesewas per ordinary share, which is double the amount, paid in the last financial year.

In all, the bank will pay a total amount of one hundred and thirty-two million, five hundred Ghana cedis (GHS132,000,500) to its shareholders, for the financial period ended December 31, 2021, following the Bank of Ghana’s approval.

Board Chairman of GCB Bank PLC, Jude Kofi Arthur, disclosed that the amount will be paid to shareholders on 1st August 2022.

“The Bank recorded significant growth in profitability and our capital adequacy is strong, well over the regulatory minimum prescribed by the Bank of Ghana. On the basis of this the Board recommends a dividend of GHS 0.50 per share representing a 100 percent increase compared to 2020, subject to Bank of Ghana’s approval.

“This reflects the Board’s ongoing confidence in the Bank’s strengths and its future prospects. Our strong and resilient balance sheet, diversified business mix and improving profitability give us the financial strength to continue to make the right investments while also rewarding our shareholders with a steady and increasing flow of dividends” said Jude Kofi Arthur.

The Board Chairman noted that, notwithstanding the challenges faced by businesses as a result of COVID-19, the financial performance of the Bank is strong.

Mr. Jude Arthur indicated that the bank is focused on accelerating its digital capabilities as a key driver to dominate the industry and create shareholder value.

He added that the future of banking and other businesses in general continue to be underpinned by digital transformation, adding that institutions that failed to prioritize digitalisation were going to encounter difficulties in remaining competitive in the market.

He added, “Therefore, accelerating digital capabilities is a key driver to dominate the industry and create shareholder value is imperative. The bank will continue to accelerate its digital agenda by making the right investments to derive maximum value for the benefit of customers and stakeholders.”

Huge Profit

The Bank achieved a profit before tax of GHS831.98 million representing an increase of 36.2 percent over the previous year. Profit after tax grew by 28.5 percent to hit GH¢572.28 million after adjusting for a 5 percent levy applied on the profit before tax of the bank following the enactment of the Financial Sector Recovery Act, 2021, Act 1067.

Net interest income increased by 25.6 per cent, from GH¢1,508.70 million in 2020 to GH¢1,894.84 million in 2021. Net fees and commission income also increased from GH¢277.98 million in 2020 to GH¢359.53 million in 2021, representing an increase of 29.3 per cent.

Furthermore, Managing Director of GCB Bank PLC, Kofi Adomakoh, indicated that the marginal growth in the bank’s profits for the last year can be traced to some factors.

These factors, according to him include strong cost control measures leading to an improvement in the Bank’s cost to income ratio; improvement in staff performance management system; and the augmentation of the Bank’s leadership in key areas to implement key elements of the Bank’s strategy. These, he said contributed to the sterling performance of the bank.

“We remain focused in our quest to continuously deliver value to you, our shareholders. We can confidently say that the Bank is on the right path to become the dominant Bank in Ghana.”

The Bank, moreover, increased its assets to GH¢18.40 billion, representing year-on-year growth of 19.1 per cent, driven mainly by loans and advances to customers and investment in securities respectively.