GCB Bank grows total assets to maintain industry dominance
GCB Bank has increased its total assets exponentially from GH¢21.3 billion in 2022 to GH¢26.9 billion in 2023, affirming its lead as the bank with the biggest value of assets in the country.
Advertisement
The bank’s loans and advances to customers also rose significantly from GH¢5.5 billion to GH¢6.7 billion in the same period under review.
According to the financial statement of the bank released by the Ghana Stock Exchange (GSE), the bank also managed to reduce its net loan impairment from GH¢274 million in 2023 to GH¢199.3 million
The stated capital of the bank, however, remained same at GH¢500 million but total liabilities increased from GH¢19.5 billion in 2022 to GH¢24.1 billion in 2023.
Profitability
Overall, the bank made a dramatic return from its loss-making position in 2022 to record huge profit last year.
The country’s premier bank posted a profit of GH¢994.1 million last year as against a huge loss of GH¢555.8 million the previous year, a development which is expected to assuage the fears of its shareholders and restore hope in the 70-year old financial institution.
There is not official comment as to how the bank returned to profit ways in style at the time of going to press but sources close to the bank said management had been working hard to turn the corner after the bank was heavily hit by the implementation of the government’s Domestic Debt Restructuring Programme (DDEP).
DDEP
In the third quarter of the year 2022, Ghana’s debt stock was assessed as having reached unsustainable levels culminating in a move by government to restructure its debts in line with an agreement with the Bretton Wood institutions for a $3 billion bailout programme.
The DDEP was a voluntary invitation to holders of selected government of Ghana (GoG) debt instruments to voluntarily surrender them in exchange for new bonds issued at new rates and maturities.
The new rates and maturities meant a value loss for investors, including banks.
