GCB ends 2021 with GHS 18.2bn assets value
State-owned bank, GCB Plc, ended the 2021 fiscal year with a remarkable total assets value of GHS 18.2bn.
On a year-on-year basis, the recorded GHS 18.2bn at end-2021, marks an increase of GHS 2.9bn in assets value from the previous year’s – 2020 – total assets value of GHS 15.3bn.
An examination of the bank’s audited financial statement for the 2021 fiscal year, indicates that the major components of the bank’s total assets value recorded significant increments in value.
Cash and cash equivalents, loans and advances to customers as well as investment securities of the bank for instance, increased from GHS 1.5bn to GHS 2.3bn; GHS 3.6bn to GHS 4.3bn; and GHS 8.5bn to GHS 9.7bn respectively.
Net profit recorded for the review year in view of the bank’s increased assets value was GHS 556m, an increase of GHS 117m from the recorded net profit of GHS 439m in 2020.
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Mainly accounting for the increment in the bank’s net profit was GCB’s operating income which grew to GHS 2.3bn in 2021 from GHS 1.9bn in 2020.
Despite the remarkable increment in the bank’s assets value and appreciable rise in net profit, GCB witnessed a significant deterioration in its loan asset quality as it’s Non-Performing Loans (NPLs) increased by 7.27 percentage points.
The bank’s NPLs rose from 8.71% in 2020 to 15.98% in 2021, slightly going above the industry’s average NPL of 15.2%.
That notwithstanding, the bank’s liquidity ratio as at the end of 2021 stood at 64% indicating that the bank will be able to meet its obligations to customers when they fall due.
Total liabilities per the bank’s 2021 financial statement, stood at GHS 15.7bn at end -December 2021 from the GHS 13.2bn recorded at end-December 2020.
Peruse financial statement below:
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