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Home Business Banking & Finance

GCB Profit Jumps to GH¢585m In Q1 as Fees Surge and NPL Ratio Drops to 4.9%

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  • GCB Profit Jumps to GH¢585m In Q1 as Fees Surge and NPL Ratio Drops to 4.9%

GCB Bank has posted a sharp rise in first-quarter earnings, driven by a surge in fee income and stronger core banking revenues, while reporting a steep improvement in asset quality that pushed its non-performing loan (NPL) ratio down to 4.9% from 14.9% a year earlier.

In its unaudited results for the period ended March 31, 2026, GCB reported a profit for the period of GH¢584.9m for the bank, up from GH¢341.1m in the same period of 2025. Group profit rose to GH¢580.5m from GH¢336.7m. Basic and diluted earnings per share increased to GH¢8.83 (bank) and GH¢8.76 (group) from GH¢5.15 and GH¢5.08 respectively.

The earnings performance was underpinned by broad-based revenue growth. Net interest income rose to GH¢1.13bn (bank) and GH¢1.13bn (group) from about GH¢0.94bn a year earlier, driven by expanding interest income and easing funding costs. But the most striking jump came from fees: net fee and commission income more than doubled to GH¢317.1m (bank) and GH¢320.4m (group), from GH¢143.7m and GH¢148.7m in Q1 2025.

Trading income also strengthened, rising to GH¢336.8m for the bank (virtually the same for the group), compared with GH¢156.3m in the prior-year period, helping lift total operating income to GH¢1.80bn (bank) and GH¢1.80bn (group).

Costs rose in tandem with the higher activity base. Personnel expenses increased to GH¢464.2m (bank) and GH¢469.0m (group), while “other expenses” and depreciation also rose modestly, leaving profit before tax at GH¢902.5m (bank) and GH¢898.9m (group).

The asset-quality improvement is likely to be the most closely watched datapoint by investors. GCB’s NPL ratio fell to 4.9% from 14.9%, even as the bank’s loan book expanded sharply year-on-year. Loans and advances to customers rose to GH¢18.21bn from GH¢9.45bn (bank and group figures align in the summary), while credit impairment allowances declined to GH¢735.9m from GH¢1.66bn, supporting the improved NPL profile.

Balance-sheet growth was funded primarily by deposits. Customer deposits increased to GH¢44.10bn from GH¢37.56bn–37.67bn, with current and savings accounts accounting for most of the increase. Total assets expanded to GH¢60.01bn (bank) and GH¢60.41bn (group), up from GH¢47.07bn and GH¢47.75bn a year earlier.

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GCB also reported a notable rise in borrowings to GH¢6.93bn from GH¢3.52bn, a shift that suggests a more active funding mix alongside deposit mobilisation. Investment securities climbed to GH¢21.28bn (bank) and GH¢21.39bn (group), with holdings across BoG bills, treasury bills and GoG bonds, reflecting the continued role of government paper in bank balance sheets.

On prudential buffers, the bank’s capital adequacy ratio edged slightly to 17.8% from 18.0%, while the common equity tier 1 ratio improved to 16.3% from 14.9%. Liquidity remained high though GCB disclosed one statutory liquidity breach during the period, with associated sanctions of GH¢480,000, compared with none a year earlier.

For the market, the results point to a bank that is growing fast, monetising transactions more effectively through fees, and cleaning up its loan book which is a combination that, if sustained, strengthens the investment case in a year when financial stocks have been driving much of the GSE’s momentum.

 

Tags: GCB BankGCB Profit Jumps to GH¢585m In Q1 as Fees Surge and NPL Ratio Drops to 4.9%ghanaGhana Association of Bankers (GAB)Ghana Stock  Exchange (GSE)
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