BoG Halts GCB Bank Dividend Payment
Shareholders of GCB Bank PLC may have to wait longer for their 2024 dividend payout as the Bank of Ghana (BoG) has halted the payment over a reclassification of the bank’s cocoa bills into longer-term bonds.
The development comes despite an earlier approval by shareholders at the Bank’s Annual General Meeting (AGM) held in May this year.
In a notice issued on October 20, 2025, GCB Bank disclosed that it is unable to proceed with the payment of dividends approved for the 2024 financial year because the central bank has not granted the required regulatory “no objection.”
“GCB Bank PLC wishes to inform its esteemed shareholders and the general public that the Bank is presently unable to proceed with the payment of the dividend approved at its Annual General Meeting (AGM) held on May 2, 2025, for the year ended December 31, 2024,” the notice read in part.
The restriction, according to GCB Bank, stems from a non-compliance with the single obligor limit rule, a prudential requirement that prevents banks from exposing too much of their funds to a single borrower to mitigate potential credit risk.
GCB Bank explained that the non-compliance arose after the government’s short-term cocoa bills, in which it had invested, were converted into long-term bonds. The reclassification, the bank noted, altered how the instruments are treated under regulatory exposure limits, causing its exposure to COCOBOD to appear higher than permitted.
This, therefore, placed the bank in temporary non-compliance with BoG’s prudential requirements, automatically disqualifying it from making dividend payments until the issue is resolved.
“The Bank is actively engaging with the regulator to resolve this matter as quickly as possible and to restore full compliance,” the notice added.
GCB assured shareholders that its financial position remains strong, describing the situation as procedural rather than a sign of financial distress. It further reiterated its commitment to sound regulatory practices, financial stability, and the protection of shareholder value.
The central bank’s directive underscores its firm stance on regulatory compliance within the banking sector, aimed at preserving depositor confidence and safeguarding the financial system.
Read Statement by GCB Below:
