Shareholders wait as regulator halts GCB dividend

GCB Bank PLC has announced it cannot proceed with the dividend payment approved by shareholders in May, citing a temporary regulatory non-compliance issue linked to restructured cocoa sector debts.

In a statement issued on October 20, 2025, the bank said it has been unable to secure the necessary "no objection" from its regulator, the Bank of Ghana, to pay the dividend for the 2024 financial year.

Related Articles

GCB donates GH¢1m to support children of fallen patriots

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

The delay stems from what the bank describes as "non-compliance with the single obligor limit arising from the conversion of restructured cocoa bills into bonds." 

The bank explained that cocoa bills were historically treated like treasury bills for regulatory purposes, but their reclassification into longer-term bonds has altered their treatment under current guidelines, creating a temporary breach of lending limits.

"The Bank is actively engaging with the regulator to resolve this matter as quickly as possible and to restore full compliance," the statement read. It also expressed regret for any inconvenience and assured shareholders of its "unwavering commitment to regulatory compliance, financial soundness, and the protection of shareholder value."

This development pauses a significant payout for investors. The bank's board had recommended a dividend of GH¢1 per share, totalling GH¢265 million for the financial year ended December 31, 2024. Had it been approved, this would have marked the resumption of dividend payments after a two-year hiatus caused by the impact of the domestic debt exchange programme on the bank’s capital.

The dividend suspension comes despite the bank reporting a record-breaking financial performance for 2024. At its 31st Annual General Meeting in May, the bank revealed a pre-tax profit of GH¢1.9 billion, a 23.3 per cent year-on-year increase. Its total assets grew to GH¢42.8 billion, and customer deposits surged to GH¢34.5 billion.

The bank's capital position also appeared robust, with a Capital Adequacy Ratio of 15.23 per cent, well above the regulatory minimum of 13 per cent.