GCB Bank records 71% profit jump as bad loans plunge to single digit

Ghana’s largest indigenous bank, GCB Bank PLC, has delivered a stunning financial performance for the first quarter of 2026, posting a 71 per cent surge in profit before tax to GH¢902.5 million, compared to GH¢533.2 million recorded in the same period last year.

The remarkable earnings growth, contained in the bank’s unaudited separate and consolidated financial statements for the period ended March 31, 2026, was driven by a near doubling of loans to customers, a sharp contraction in loan impairment charges, and a sustained expansion in interest and non-interest revenue streams.

Profit after tax for the period leapt to GH¢584.9 million from GH¢341.1 million in Q1 2025, representing a 71.5 per cent increase. Earnings per share more than kept pace, rising from 5.15 pesewas to 8.83 pesewas for the bank, and from 5.08 to 8.76 pesewas on a group basis.

The most eye-catching development, however, was the dramatic improvement in asset quality. The bank’s non-performing loan ratio crashed from 14.9 per cent in March 2025 to just 4.9 per cent by March 2026. The non-performing loan ratio excluding the loss category stood at 2.4 per cent.

Net impairment loss on financial assets increased only modestly to GH¢91.7 million from GH¢73.1 million, a far smaller rise than the massive expansion in the loan book would ordinarily suggest. The bank’s credit impairment allowance actually fell sharply, from GH¢1.66 billion in March 2025 to GH¢735.9 million in March 2026, reflecting the clean-up of legacy bad debts.

Loans and advances to customers more than doubled year-on-year, leaping from GH¢9.45 billion to GH¢18.21 billion, a clear indication that GCB is aggressively lending again after a period of de-risking. That expansion, coupled with a 36 per cent rise in investment securities to GH¢21.28 billion, powered interest income to GH¢1.46 billion, up from GH¢1.30 billion in the prior year.

Net interest income climbed 20 per cent to GH¢1.13 billion, while net fee and commission income more than doubled, soaring from GH¢143.7 million to GH¢317.1 million, thanks to sharp increases in processing and facility fees, which rose from GH¢31.9 million to GH¢108.2 million. Net trading income also more than doubled to GH¢336.8 million, driven by strong fixed income trading and foreign exchange gains.

Total operating income expanded by 44 per cent to GH¢1.80 billion, comfortably absorbing a 34 per cent rise in personnel expenses to GH¢464.2 million and a 12 per cent increase in other expenses to GH¢286.2 million.

The bank’s balance sheet swelled considerably. Total assets climbed 28 per cent to GH¢60.01 billion for the bank and GH¢60.41 billion for the group, up from GH¢47.07 billion and GH¢47.75 billion respectively in March 2025. Customer deposits grew by 17.4 per cent to GH¢44.10 billion, while borrowings nearly doubled to GH¢6.93 billion, suggesting the bank is leveraging up to fund its aggressive loan growth.

Shareholders’ equity jumped 50 per cent to GH¢6.62 billion, underpinned by a sharp rise in retained earnings from GH¢2.94 billion to GH¢4.97 billion. The bank’s common equity tier 1 ratio strengthened to 16.3 per cent from 14.9 per cent, well above the regulatory minimum, while the leverage ratio improved to 8.1 per cent from 6.9 per cent. The capital adequacy ratio remained robust at 17.8 per cent, marginally lower than 18 per cent a year earlier.

The bank’s liquid ratio stood at 73.8 per cent, down slightly from 78.2 per cent but still immensely strong. However, the financial statements disclosed a single statutory liquidity breach during the period, attracting a sanction of GH¢480,000.

Cash and cash equivalents closed the period at GH¢14.13 billion, slightly down from GH¢15.34 billion a year earlier, reflecting the deployment of funds into higher-yielding loans and securities.

The statements were signed by Board Chairman Professor Joshua Alabi and Managing Director Farihan Alhassan.