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 GHC395 million as against the 2013 figure of GHC317 million. This is according to the Bank’s results released early this week.
Total income increased by 29% to GHC731million 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 GHC 428 million. Other factors which contributed to this hike include higher investment cost of business re-organization and the sharp increase in utility prices among others. Costs include GHC95m 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 GHC4.3billion 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 GHC1.2billion. 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 GHC1.4billion from GHC196million in five years which is unprecedented in the history of the Bank. The share price has increased from 74pesewas to GHC5.25 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.