GCB Bank profit up …2014 financial results confirms it as one of the top performing banks

For the fourth year running GCB Bank Ltd. has released a strong performance, consolidating its position among the top performing banks in the country.

Operating profit before tax in 2014 increased by 25% to GH₵395million compared to the 2013 figure of GH₵317million. This is according to the bank’s results released early this week.

Total income increased by 29% to GH₵731million, and this was driven by volume growth across all business lines — namely Consumer and Corporate Banking and Treasury.

In a year in which the bank undertook a major re-branding project, headline operating costs went up by 58% to GH₵428million. Other factors which contributed to this hike include higher investment cost of business re-organisation and the sharp increase in utility prices among others. Costs include GH₵95m non-recurring costs, so underlying cost growth was 23%.

The bank during this period successfully improved its technology infrastructure, which is reflecting in over one million transactions across electronic channels monthly.

Total assets increased by 25% to GH₵.3billion, driven by growth in loans and advances and investment.
Customers were the better for it, as loans and advances to customers increased by 29% to GH₵1.2billion.
Overall the bank delivered a Return on Equity of 41% that further strengthened its Capital Adequacy Ratio.

Mr. Simon Dornoo, Managing Director of the Bank said: “GCB is now one of the top performing banks in Ghana and also a very attractive stock on capital markets”.

The value of the bank has increased exponentially to GH₵1.4billion from GH₵196million in five years, which is unprecedented in the bank’s history. The share price has increased from 74 pesewas to GH₵5.25 in those five years, he added.

This has been confirmed by some analysts who see the GCB stock as very strong and doing very well, and is in hot demand.