GCB Bank has recorded strong profit growth for 1H 2024, leading the bank’s performance than it was in 1H 2023. This favourable performance was mainly attributed by strong increase in the customer deposit YTD and improvement in the operating expense.
The focus shift in the sales, transaction banking and, customer-centric model was one of the key facets that supported this success in the bank. PBT has also increased by 35 percent y/y to GH₵700. 3 million. This raise was mainly attributed to the growth in interest income and accompanied by 21 percent YTD in customer deposits as well as growth in net fee and commission income.
As for operating expenses, they increased to GH₵1 for the first half of 2024 year of the corresponding type of the enterprise. 48 billion which shows 17 percent increase from GH₵921. 1 million in 2023 due to inflationary and devaluation factors of Kenyan currency as the country’s export market expands. However the improvements in risk management and risk mitigation measures reduced the impairment loss on financial assets by 70 percent y/y to GH₵104. 8 million in 1H 2024 On this regard it is needed to mention that company have planned to achieve higher growth rate in terms of sales volume as well as the level of its revenue.
This led to enhancement of the bank assets as total assets posted a 22percent YTD growth to GH₵33. 20 billion. This growth was backed by a sharp increase in deposits, this shows that client still have the confidence in the position that GCB Bank is in despite the prevailing macro-economic challenges.
Total revenue recorded for 1H 2024 increased by 5 percent y/y to GH₵1. 89 billion. Net interest income also improved 5 percent y/y to GH₵1. 43 billion. Further, with net fees and commission income exploring a huge 28 percent to GH₵245. A rise in earnings from electronic services, trade services, processing and facility fees meant that 4 million was realised on this account. Net trading income also put in its modest contribution of GH₵211. 8 million to the banks revenue within the period in question.
Shareholders’ equity also climbed by 15 percent YTD to GH₵3.22 billion, driven by the higher profits, which in turn enhanced the bank’s financial performance and shareholder value. This increase in equity highlights GCB Bank’s solid financial foundation and its ability to generate internal capital.
Earnings per share rose from GH₵2.52 in 1H 2023 to GH₵3.20 in 1H 2024. The bank’s Capital Adequacy Ratio stood at 18.5 percent, well above the regulatory minimum of 10 percent, while Return on Equity reached 26.2 percent, reflecting effective capital utilization. Return on Assets was recorded at 2.8 percent, underscoring the bank’s strong financial health.
Commenting on the 1H 2024 performance, Mr John Kofi Adomakoh, Managing Director of GCB Bank PLC, said: “GCB continues to record strong and higher quality earnings as well as improved returns to shareholders despite the challenges and uncertainties in the market combined with intensifying competition”.
Mr. Adomakoh addressed that the Bank’s 1H 2024 performance was driven by a strong emphasis on sales and transaction banking, expansion of the Bank’s clientele and relationships, strict credit underwriting standards combined with cost-effectiveness, robust governance, and efficient risk management and control.
The Bank’s 1H 2024 results thus confirm that GCB remains a beacon of financial stability and resilience, well-prepared to navigate the intricate financial landscape in Ghana with steadfastness, confidence and strategic foresight.
SOURCE https://dew360.net
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