1H 2024: GCB’s total revenue hits ₵1.89bn with ₵700.3m profit-before-tax

GCB Bank says it recorded “strong profit growth” in the first half of 2024 (1H 2024) compared to the same period in 2023.

The bank said in a statement that the “strong performance” was primarily driven by a “significant increase” in customer deposits year-to-date (YTD), coupled with “dedicated efforts at optimising operational efficiency.”

The 1H2024 financial performance results from the Bank’s strategic shift to a strong focus on sales, transaction banking and a customer-centric approach.

Profit Before Tax for the period increased by 35 per cent year-on-year (y/y) to GHS700.3 million, driven by growth in interest income and supported by a 21 per cent year-to-date increase in customer deposits and an increase in net fees and commission income.

Total revenue increased by 5 per cent y/y to GHS 1.89 billion at 1H 2024.

Net interest income grew by 5 per cent y/y to GHS 1.43 billion in 2024, with net fees and commission income also increasing by 28 per cent to GHS 245.4 million.

Increased earnings from electronic services, trade services, processing and facility fees drove the net fees and commission growth over the half-year period.

Additionally, net trading income contributed GHS 211.8 million to revenue in 1H, 2024.

Operating expenses for 1H 2024 came in at GHS1.08 billion, up 17 per cent from GHS921.1 million in 2023. This increase was driven by inflation and currency depreciation pressures.

Impairment loss on financial assets for the period declined by 70 per cent y/y to GHS104.8 million in1H2024.

This sharp decline in impairment loss resulted from the Bank’s enhanced risk management and risk mitigation strategies.

The balance sheet also grew substantially in the review period.

Total assets surged to GHS33.20 billion, representing a 22 per cent increase YTD. 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.

Shareholders’ Equity surged by 15 per cent YTD to GHS 3.22 billion in 1H 2024 due to the increased profit for the period, bolstering the Bank’s financial performance and increasing shareholders’ value.

This growth in equity underscores our strong financial footing and demonstrates the Bank’s capacity to generate internal capital.

Earnings per share also grew, rising from GHS 2.52 in 1H 2023 to GHS 3.20 in 1H 2024. Also, the Capital Adequacy Ratio stood at 18.5 per cent, well exceeding the regulatory requirement of 10 per cent.

Return on Equity reached 26.2 per cent, reflecting efficient capital utilisation, while Return on Assets settled at 2.8 per cent.

Commenting on the 1H 2024 performance, Mr John Kofi Adomakoh, Managing Director of GCB Bank PLC, 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”.

Mr Adomakoh explained that 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 1H 2024 performance.

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 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.

The GCB Managing Director shared management’s commitment to maintaining optimal capital levels to support strategic and business objectives to drive long-term success and returns for shareholders.

The Bank’s 1H 2024 results thus confirm that GCB remains a beacon of financial stability and resilience, well-prepared to navigate the intricate financial landscape in Ghana with steadfastness, confidence and strategic foresight.