Ghana Commercial Bank PLC has reported a remarkable financial performance for the 2023 fiscal year, showcasing resilience and a robust recovery following the Domestic Debt Exchange Programme (DDEP).
The bank posted a substantial profit before tax of GH₵547.4 million, a significant turnaround from a loss of GH₵743.5 million in 2022.
Commenting on the performance, the Managing Director of GCB Bank PLC, John Kofi Adomakoh highlighted the bank’s best-ever profit before tax, attributing the success to the implementation of strategic initiatives and the loyalty of a growing client base.
“We reported our best-ever profit before tax of GHS1,547.4 million in our platinum anniversary year. Our strong rebound to profit after the adverse effect of the Domestic Debt Exchange Programme (DDEP) in the prior year is a testament to the successful implementation of our strategy and confidence and loyalty of our large and growing client base.”
He said that the bank’s focus on improving customer experience and commitment to make a positive impact on all stakeholders will strengthen the GCB’s competitive advantage to deliver sustainable and improved returns and market dominance.
Speaking at the 30th Annual General Meeting, at the Accra International Conference Center on Thursday, June 27, Mr Adomakoh expressed optimism for the future, emphasising the bank’s strategic positioning to achieve sustainable and profitable growth, leveraging its respected brand and strategic partnerships.
He said “As I look to the future, I do so with a sense of optimism and confidence. Despite economic uncertainties and rapid technological disruption, GCB Bank is well positioned to advance further its market share and viability, leveraging its core strengths and effectively executing our strategy to achieve superior client experience, strong, sustainable and profitable business growth and operational excellence.
“We will continue to leverage our respected brand and strategic partnerships and invest to capitalise on emerging opportunities that will strengthen our competitive advantages in 2024 and the years ahead,” Mr Adomakoh added.
GCB Bank achieved strong revenue growth across its business segments, with total revenue reaching GH₵3,784.2 million, a 26 per cent increase from the previous period’s revenue of GH₵3,005.7 million. Net Interest Income (NII) grew by 37 per cent to GH₵2,895.7 million, while net fees and commission income increased by 14 per cent to GH₵438.2 million.
However, net trading income dipped 13 per cent from GH₵487.2 million in 2022 to GH₵425.1 million in 2023 due to lower trading volumes.
Operating expenses for the year 2023 totalled GH₵1,814.7 million, reflecting an 11 per cent year-on-year increase. The impairment charge significantly decreased by 79 per cent to GH₵432.9 million, compared to GH₵2,074.1 million in 2022, primarily due to losses on government securities from the DDEP.
The bank’s balance sheet improved significantly, growing from GH₵21,494.4 million in 2022 to GH₵27,155.7 million in 2023, a 26 per cent increase. This growth was driven by a 23 per cent increase in customer deposits, reaching GH₵21,781.4 million. Shareholders’ funds rose by 54 per cent to GH₵3,080.1 million.
Key financial performance indicators showed a positive trend, with earnings per share (EPS) at GH₵3.81, a Return on Equity (ROE) of 40 per cent, and a Return on Assets (ROA) of 4 per cent.
The cost-to-income ratio improved to 48 per cent from 54 per cent, indicating effective cost optimisation. The Capital Adequacy Ratio stood at 19 per cent, surpassing the regulatory limit of 10 per cent.
The bank’s 2023 performance reflects its commitment to revenue growth, profitability, operational excellence, and talent development. Significant progress was made in expanding the customer base, enhancing relationship management, and implementing targeted marketing strategies.
Investments in IT infrastructure and leadership development programs further supported the bank’s strategic objectives.
GCB Bank also demonstrated its commitment to social responsibility, investing GH₵6.3 million in projects focusing on youth, the environment, education, and health, benefiting millions of Ghanaians.
The bank’s impressive performance in 2023 has laid a solid foundation for future growth, evidenced by strong first-quarter 2024 results.
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