GCB pays out GH¢265m dividend after 5yrs break - Eyes West Africa expansion

Shareholders of GCB Bank PLC are set to receive dividend payout of GH¢265 million for 2025, after five years of putting that on hold.

Shareholders approved the GH¢1 per share dividend last Friday on the back of a strong and resilient performance for the period under review, with the bank’s operating profit increasing significantly by 67.4 per cent to GH¢3.17 billion in 2025, compared to GH¢1.9 billion in 2024.

Shareholders, who voted 96.77 per cent in favour of the dividend recommendation, described it as a welcome development following years of restraint and uncertainty over dividend approvals.

Surprisingly, the dividend of GH¢1 per share, which recorded only 3.23 per cent against votes, is expected to result in a substantial payout for shareholders after a prolonged break.

Speaking at the 32nd annual general meeting (AGM) of the bank in Accra last Friday, the Board Chairman of GCB Bank PLC, Professor Joshua Alabi, stated that the dividend approval followed sustained engagement with the regulator after last year’s disappointment when the proposed payout was not approved.

“Last year, the regulatory authorities did not approve our proposed dividend.

This was disappointing not only for you, our valued shareholders, but also for us as directors.

Your concerns are our concerns, and your satisfaction remains our priority,” he said.

Prof. Alabi said that the bank took proactive steps to address the situation by engaging extensively with the Bank of Ghana (BoG) over the past year, leading to a favourable outcome.

“We are pleased that our efforts have yielded positive results. I am delighted to announce that the Bank of Ghana has granted approval for the payment of dividends for the 2025 financial year,” the board chairman said, and expressed appreciation to the regulator for its support and understanding.

Share price surge

Prof. Alabi stated that the bank’s improved performance was underpinned by a deliberate strategy implemented by the board and management, which significantly boosted shareholder value over the period.

He explained that when he assumed office, the bank’s share price stood at GH¢6, but rose sharply to GH¢20 by the end of 2025, reflecting strong market confidence and effective corporate leadership.

Prof. Alabi said that profitability also improved markedly, with the bank recording about GH¢3.2 billion in profit in 2025 compared to GH¢1.9 billion the previous year, a development that strengthened the case for dividend payment.

He said the combination of increased profitability and share price appreciation provided tangible returns for shareholders, justifying the decision to declare dividends after years of regulatory constraints. 

Expansion strategy

On the bank’s outlook, Prof. Alabi stated that GCB Bank had positioned itself to withstand global and regional economic shocks through a robust and forward-looking strategy. 
He said the bank had begun exploring expansion opportunities beyond the country, including plans to enter the Liberian market as part of efforts to strengthen its regional footprint.

The GCB Bank Chairman stressed that management had already engaged authorities in Liberia regarding a possible acquisition of one of the country’s leading banks, with further considerations being given to expansion into The Gambia.

He said that the move was in response to increasing competition from foreign banks operating in Ghana and the need for GCB to evolve from a domestic leader into a regional player.

Prof. Alabi added that the expansion strategy formed part of broader efforts to sustain growth, enhance competitiveness and deliver long-term value to shareholders.

Performance

Despite a period of transition, the board chair said the GCB Group delivered a strong and resilient performance in 2025.

He said the bank recorded strong growth across key indicators, with operating income increasing by 40.9 per cent to GH¢6.3 billion, while profit surged by 67.4 per cent to GH¢3.17 billion, underscoring a solid financial turnaround.

“Total assets increased by 23 per cent, closing the year at GH¢52.6 billion. Loan portfolio expanded by 56.8 per cent, while customer deposits grew by 19.7 per cent reaching GH¢41.3 billion,” he added.