GCB equals Ecobank in total asset value of GHS 21bn
State-owned bank, GCB, has equaled the country’s largest bank in terms of assets value base.
GCB, per its second quarter financial statements for this year, recorded a total asset value of GHS 21.2bn at the end of June 2022.
Compared to the GHS 16.4bn total assets value recorded at end-June 2021, the significant jump in the bank’s assets value marks a year-on-year increase of GHS 4.7bn.
Checks from the Q2 2022 Financial Statement of Ecobank Ghana by norvanreports indicates that Ecobank’s total assets value base at end-June 2022 stood at GHS 21.6bn, slightly above GCB’s GHS 21.2bn.
A perusal of GCB’s financial statement, revealed that huge increments in the bank’s cash and cash equivalents, loans and advances as well as Investment securities, accounted for the surge in the bank’s asset value.
For the review period, cash and cash equivalents of GCB grew from GHS 2.2bn to GHS 4.2bn; loans and advances also grew from GHS 3.5bn to GHS 5.1bn and the value of investment securities rose from GHS 8.9bn to GHS 9.4bn.
GCB’s GHS 9.4bn investment securities, shows the bank’s high exposure to government debt.
Liabilities of the bank however, also saw a significant jump from GHS 14.2bn in June 2021 to GHS 18.3bn in June 2022.
The huge jump in the bank’s liabilities was mainly on the account of increments in deposits from customers.
Deposits from customers on a year-on-year basis grew from GHS 12.5bn in June 2021 to GHS 14.3bn in June 2022.
Recorded profit after tax at end-June 2022 was GHS 305m, up from the previous year’s profit after tax of GHS 227m.
Per the recorded profit, earnings per share for the review period increased from GHS 1.72 to GHS 2.30 at end-June 2022.
With the exception of the bank’s non-performing loans, financial soundness indicators such as the capital adequacy ratio and liquidity ratio of the bank increased.
The capital adequacy ratio of the bank increased from 20.9% in June 2021 to 21.1% in June 2022.
Liquidity ratio for the review period also increased from 63.9% to 78.4%.
Non-performing loans of the bank within the review period improved as it declined from 20.7% to 15.2% within the review period.