GCB Bank PLC declares GH¢265m dividend payout - BoG to approve GH¢1/share

GCB Bank PLC delivered another year of outstanding performance, demonstrating resilience and strategic growth amid a challenging operating environment. 

The 2024 audited financial results show the indigenous bank posting a record profit for the year, as well as impressive results across most financial performance indicators, including deposits, loans and total assets.

These came to light in Accra last Friday at the 31st Annual General Meeting (AGM) for the financial year ended December 31, 2024.

The GCB Group posted a record high profit before tax of GH¢1.9 billion, marking a 23.3 per cent year-on-year increase, the annual results of the bank indicate.

This performance was driven by an 18.3 per cent growth in earnings, comprising an 18.6 per cent increase in interest income, a 22.5 per cent increase in non-funded income, and an 8.41 per cent rise in net trading income.

The bank's assets grew by 57.6 per cent over the previous figure to GH¢42.8 billion, significantly above the industry growth rate of 33.79 per cent.

The results reflect the gains made over the four-year strategy cycle. Consequently, the bank refocused its sales drive, diversified its revenue streams, modernised digital solutions, established a stronger risk culture and adopted a more customer-centric approach.

As a result, 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.

Dividend

The Board recommended a GH¢1 dividend per share, amounting to GH¢265 million for the financial year ended December 31, 2024, subject to the Bank of Ghana’s approval.

If approved, the payout will amount to a dividend yield of 15.7 per cent for the 2024 financial year as the bank resumes dividend payment after a two-year hiatus due to the impact of the domestic debt exchange programme on the bank’s capital.

New directors

The 31st AGM approved the appointment of 10 new directors to the reconstituted GCB Board, chaired by Prof. Joshua Alabi, an independent non-executive director, and included the Managing Director (MD), Farihan Alhassan.

The shareholders also approved Dr Alhaji Yahaya Abdul-Rahman, Pamela Seyram Addo, Frederick Amissah, and John Colin Villars as non-executive directors.

The rest are Alexander Agambilla Awine, Dr Nana Amma Adjovu, Dr Nene Adams Kortey Asafotei, and Dr Abdulai Alhassan, who are all non-executive directors.

Asset quality, capital position

The strong profit recorded for the period further strengthened the bank’s capital position, with shareholders' equity surging 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.

Consequently, the Capital Adequacy Ratio (without forbearance) stood at 15.23 per cent, well above the regulatory minimum of 13 per cent.

Earnings Per Share increased to GH¢4.53 for the period, with the bank also returning 32.4 per cent on equity, reflecting efficient capital utilisation, while return on Assets was 3.4 per cent for the period.

GCB Bank's sound risk culture and proactive approach to 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.

Corporate Social Responsibility

In efforts to create socio-economic opportunities 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 driving transformative initiatives in education, health, sports and social inclusion.

The bank also supported career opportunities at the Kwame Nkrumah University of Science and Technology’s Career Services Centre, donated over 3,000 textbooks to schools, funded lifesaving treatments, including eye surgery and breast cancer treatment, and championed social inclusion with donations to the Akropong School for the Blind, the Osu Children’s Home and fuelled entrepreneurship with the "Entrepreneurship in You" programme.

Outlook

The Board of GCB Bank said the bank’s new strategic cycle (2025-2028) would consolidate the gains and drive sustainable growth.

“The new strategy will be built on three core pillars: Customer Experience, Digital Transformation, and People and Talent.

The bank aims to enhance customer experience through hyper-personalisation and advanced digital transformation to streamline operations,” the bank said.

The MD underscored the bank's stellar performance in 2024, stating that it was the best in the bank’s history in nominal terms.

Despite the success, he acknowledged the need for improved cost efficiency, and gave an assurance that investments in systems, talents and people would enhance the GCB Bank's operations.

Prof. Alabi also emphasised the opportunity to build on recent gains and pursue industry dominance by enhancing customer experience, leveraging digitalisation and boosting sales activities.

He expressed the belief that the strategic approach would lead to long-term success and growth.