GCB continues impressive growth; earnings up 41% in quarter one

Ghana’s second biggest bank, GCB Bank, has continued gains chalked last year, by growing its profit margin by 41% to GH¢131 million in the first quarter of 2021.

According to its first quarter 2021 unaudited results, the appreciable increase in earnings was as result of growth in all its income lines, particularly interest income.

Interest income went up by about 30% to GH¢559.8 million in the first three months of this year, whilst net fees and commissions also grew by 13.5% to GH¢72.8 million in March 2021.

The bank could have recorded more earnings, if not for the GH¢80 million bad debt that was written-off.

Shareholders will however enjoy GH¢1.98 earnings per share, bigger than the GH¢1.66 recorded during the whole of 2020.

The balance sheet continued to remain strong, as its size reached GH¢30.28 billion in quarter one of 2021, compared with GH¢29 billion recorded in 2020.

With regard to the robustness of the bank, non-performing loans went up to 13.0% in March 2021, from 6.5% a year ago. Industry average is estimated at 15.5%.

Capital Adequacy Ratio-a measurement of a bank’s available capital to its Risk Weighted Assets was also way above the industry average, at 19.7 in March 2021, slightly lower than the 20.7% recorded in 2020.

This financial soundness indicators however signify a safe, sound and robust bank.

Financial Soundness Indicators

 March 2021December 2020
Capital Adequacy Ratio19.7%20.7%
Non-Performing Loans13%8.71%
Liquidity ratio61%64%


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