GCB Bank declares GH¢1 dividend after two-year break, signals strong recovery

1 week ago 6

GCB Bank PLC has announced a GH¢1 per share dividend for the 2024 financial year pending final approval from the Bank of Ghana.

The announcement, made at the bank’s 31st Annual General Meeting (AGM) in Accra, marks a return to shareholder payouts after a two-year suspension and highlights the bank’s remarkable financial turnaround.

The proposed dividend totaling GH¢265 million would represent a yield of 15.7%, underlining GCB’s restored financial strength following the economic disruptions of Ghana’s domestic debt exchange.

This comes on the back of a record-breaking year for the indigenous lender, which reported a profit before tax of GH¢1.9 billion, a 23.3% increase compared to 2023.

The bank also moved up to second place among peers in key indicators including deposits, loans, and total assets.

The Managing Director of GCB Bank, Farihan Alhassan, described 2024 as the strongest financial year in the bank’s history in nominal terms, crediting solid fundamentals and strong execution.

However, he noted the need for further gains in cost efficiency, and reiterated the management’s focus on investing in talent, digital systems, and service delivery.

Board Chairman, Professor Joshua Alabi, newly appointed alongside Alhassan as part of a reconstituted 10-member board, outlined the bank’s next strategic phase from 2025 to 2028.

He added that the roadmap would prioritise customer experience, digitisation, and enhanced sales.

Under its recently concluded four-year strategic plan, GCB achieved impressive growth: its loan book expanded by 52.8% to GH¢10.2 billion, deposits rose 58.5% to GH¢34.5 billion, and total assets surged to GH¢42.8 billion a 57.6% increase that exceeded industry averages.

Shareholders’ equity also grew 41% to GH¢4.3 billion, lifting the capital adequacy ratio to 15.23%, above the 13% regulatory requirement.

The bank posted a return on equity of 32.4% and a return on assets of 3.4%, while improving asset quality the Non-Performing Loan (NPL) ratio dropped to 15.1%.

In line with its social responsibility agenda, GCB invested GH¢12 million in community initiatives during 2024.

These spanned education, health, sports, and youth entrepreneurship, with notable programs, including textbook donations, medical assistance, and the “The Entrepreneurship in You” initiative.

SP/AE

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