GCB Doles Out 77% of GHS 341 Million Net Profit In Dividend Payout to Shareholders after 2-Year Hiatus
GCB Bank has recommended a GHS 1 dividend per share payout to shareholders for the 2024 fiscal year. The GHS 1 dividend payment was announced by the Board at the bank’s 31st Annual General Meeting (AGM) on Friday, May 2, 2025.
The recommended dividend subject to approval by the Bank of Ghana (BoG) amounts to a total of GHS 265 million for the financial year under review.
A critical look by NorvanReports indicates that the recommended dividend payout represents approximately 77% of the GHS 341 million net profit recorded by the bank, going beyond the bank’s 50% distributable profit dividend payout policy.
Explaining the reason for going beyond the 50% threshold, Managing Director of GCB, Farihan Alhassan, noted the recommended dividend payout was to compensate for the non-payment of dividends over the last two financial years – 2022 and 2023 – due to the Central Bank’s directive to banks to withhold dividend payments occasioned by the devastating impact of the domestic debt restructuring programme (DDEP).
The bank, for the review year, achieved a record high profit before tax (PBT) of GHS 1.9 billion, marking a 23.3% year-on-year increase. This performance was driven by an 18.3% growth in earnings, comprising an 18.6 percent increase in interest income, a 22.5% increase in nonfunded income, and an 8.41% rise in net trading income.
The Bank’s total assets grew by 57.6% year-on-year to GHS 42.8 billion, significantly above the industry growth rate of 33.79%. The results reflect the gains made over the 4-year strategy cycle.
Consequently, the Bank refocused its sales drive, diversified its revenue streams, modernized digital solutions, established a stronger risk culture, and adopted a more customer-centric approach. As a result, GCB expanded its loan book by 52.8% year-on-year to GHS 10.2 billion in 2024, while total deposits grew by 58.5% year-on-year to GHS 34.5 billion.
The strong profit recorded for the period further strengthened the Bank’s capital position, with shareholders’ equity surging 41% year-on-year to GHS 4.3 billion. This growth in equity underscores our strong financial footing and demonstrates the Bank’s capacity to strengthen its capital position through internally generated funds.
Consequently, the Capital Adequacy Ratio (without forbearance) stood at 15.23% well above the regulatory minimum of 13%. Earnings Per Share (EPS) increased to GHS 4.53 for the period, with the Bank also returning 32.4% on Equity (RoE), reflecting efficient capital utilization. Return on Assets (ROA) was 3.4% for the period.
The Bank’s sound risk culture and proactive approach to risk management also helped improve asset quality, with the non-performing loans (NPL) ratio closing in 2024 at 15.1 percent, down by 5.1% from the previous year.
Mr Alhassan commenting on the bank’s stellar performance for the 2024 financial year quipped, “This is the best financial results in the bank’s history in nominal terms. However, there’s the need for improved cost efficiency and increased investments in the bank’s systems, talents, and people to further enhance the bank’s operations.”
Also commenting on the bank’s performance was the Board Chairman of GCB, Professor Joshua Alabi who emphasized the opportunity for the bank to build on recent gains and pursue industry dominance by enhancing
customer experience, leveraging digitalization, and boosting sales activities.
“This strategic approach will lead to long-term success and growth of the bank,” he added.
GCB Bank’s performance in 2024 underscores its resilience and strategic foresight in navigating a challenging economic landscape. The bank climbed above notable peers to rank second across most of the metrics of financial performance, including deposits, loans, and total assets in 2024. The Bank is well-positioned for sustained profitability and growth in 2025 and beyond.
