GCB Bank PLC announces GH¢265m dividend payout: GH¢1 per share pending BoG approval

Ghana Commercial Bank (GCB) Bank PLC reported another year of impressive achievements, showcasing resilience and strategic growth regardless difficult operating environment.

The 2024 audited financial results show the local bank posting a record profit for the year, as well as outstanding achievements across most financial performance indicators, including deposits, loans and total assets. These were revealed in Accra last Friday at the 31st Annual General Meeting (AGM) for the financial year ended December 31, 2024.

The GCB Group posted an all-time high profit before tax of GH¢1.9 billion, representing a 23.3 per cent comparative yearly performance increase, the annual results of the bank indicate.

This performance was powered by an 18.3 per cent showing a strong earnings performance, including an 18.6 per cent increase in interest income, a 22.5 per cent increase in non-operating income, and an 8.41 per cent rise in net trading income. The bank’s assets increased by 57.6 per cent over the previous figure to GH¢42.8 billion, notably surpassing the industry growth rate of 33.79 per cent.

The results shows the gains made over the four-year planning cycle. As a result, the bank refocused its sales drive, developed multiple revenue channels, modernised digital solutions, strengthened risk management practices and adopted a more putting customers at the forefront. Due to that, GCB lent GH¢10.2 billion to customers in 2024, a 52.8 per cent increase over the 2023 position, while total deposits grew by 58.5 per cent to GH¢34.5 billion.

The Board suggested a GH¢1 dividend per share, totaling GH¢265 million for the financial year ended December 31, 2024, in accordance with Bank of Ghana’s approval. If approved, the payout will add up to a dividend yield of 15.7 per cent for the 2024 financial year as the bank resumes dividend payment after a two-year pause due to the effects of the debt restructuring initiative on the bank’s capital.

The 31st AGM approved the appointment of 10 new directors to the restructured board of directors GCB Board, chaired by Prof. Joshua Alabi, an independent non-executive director, and included the Managing Director (MD), Farihan Alhassan. The shareholders also accepted Dr Alhaji Yahaya Abdul-Rahman, Frederick Amissah, Pamela Seyram Addo, and John Colin Villars as non-executive directors.

The rest are Alexander Agambilla Awine, Dr Nene Adams Kortey Asafotei, Dr Nana Amma Adjovu and Dr Abdulai Alhassan, who are all not part of the executive directors.

The strong financial performance for the period further reinforced the position of the bank’s capital, with shareholders’ equity increasing by 41 per cent year-on-year to GH¢4.3 billion.

This growth in equity underscores the bank’s strong financial footing and demonstrates its capacity to strengthen its capital position through internally generated funds.

As a result, the Capital Adequacy Ratio (without forbearance) stood at 15.23 per cent, significantly exceeding the regulatory requirements of 13 per cent. Earnings per share rose to GH¢4.53 for the period, with the bank also returning 32.4 per cent on equity, demonstrating efficient resource allocation, but return on assets was 3.4 per cent for the period.

GCB Bank’s strong risk governance and oversight of risk management also helped improve asset quality, with the non-performing loans ratio closing 2024 at 15.1 per cent, down by 5.1 per cent from the previous year.

To drive socio-economic development and empower the communities within which the bank operates, GCB Bank PLC invested GH¢12 million in corporate social responsibility last year, with a focus on improving game-changing initiatives in education, health, sports and social inclusion.

Prof. Alabi highlighted the opportunity to build on recent gains and aim for industry excellence by improving customer satisfaction and utilising digital platforms to enhance sales performance. He expressed the belief that the strategic approach would yield long-term prosperity.

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