• Login
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
  • Home
  • News
    • General
    • Political
  • Economy
  • Business
    • Agribusiness
    • Aviation
    • Banking & Finance
    • Energy
    • Insurance
    • Manufacturing
    • Markets
    • Maritime
    • Real Estate
    • Tourism
    • Transport
  • Technology
    • Telecom
    • Cyber-security
    • Cryptocurrency
    • Tech-guide
    • Social Media
  • Features
    • Interviews
    • Opinions
  • Reports
    • Banking/Finance
    • Insurance
    • Budgets
    • GDP
    • Inflation
    • Central Bank
    • Sec/Gse
  • Lifestyle
    • Sports
    • Entertainment
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video
No Result
View All Result
No Result
View All Result
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
No Result
View All Result
Home Business Banking & Finance

GCB’s NPL nearly triples in 1 year

4 years ago
in Banking & Finance, Banking/Finance, Business, Editor's pick, highlights, Home, home-news, latest News, Reports
2 min read
0 0
0
230
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

GCB’s NPL nearly triples in 1 year

Asset quality of State-owned bank, GCB, recorded significant deterioration as its non-performing loans (NPL) on a year-on-year basis (June 2020 to June 2021) nearly tripled.

Per information contained in the bank’s Unaudited Financial Statement for Q2 2021, the bank’s NPL as of June 2020, accounted for 7.8 percent of total loans made, the bank’s NPL however, shot up to 20.7 percent of total loans made as at the end-June 2021.

Factors that have accounted for the astronomical increase in the bank’s NPL are currently unknown, but one can always partially attribute the surge in the bank’s NPL to loan repayment challenges faced by businesses and households as a result of the negative impact of the Covid pandemic on the economy.

Additionally, the provision of a 3-12 months moratorium on principal payments on loans granted to businesses and households by the bank per the directive issued by the Central Bank might also be a factor.

With regards to the banks Capital Adequacy Ratio (CAR), GCB for the first half of 2021, posted a CAR of 20.9 percent which is well above the regulatory 13 percent CAR demanded by the Central Bank.

With a CAR of 20.9 percent, this means that the bank has enough capital to absorb potential losses incurred due to bad loans.

RelatedPosts

Parliament Adjourns Sine Die After Intense Legislative Session Marked by Reform Calls and Tributes

GACL Terminates Evatex Revenue Assurance Contract Amid OSP Probe

Cyber Security Authority Flags Rising Mobile Data Scam, Cautions Public

Read: Total investment interests in Nigeria crashed by 80% between Q1 and Q2

It also means that the bank is highly unlikely to become insolvent and very capable of protecting depositors’ monies.

GCB, for the review period, posted a profit of Ghs 227 million, some Ghs 45 million more profit when compared to last year’s Ghs 182 million.

The bank’s profit was driven largely by its net interest and operating incomes.

Net interest income and operating income amounted to Ghs 915 million from Ghs 670 million and Ghs 1.1 billion from Ghs 906 million respectively for the review period.

In terms of total assets, the bank grew from Ghs 14.1 billion in June 2020 to Ghs 16.4 billion in June 2021 – by more than Ghs 2.3 billion.

As expected, the recorded increment in the bank’s assets was driven mainly by an increase in the bank’s investment holdings of government securities.

The value of the bank’s investment securities as of June 2020, stood at Ghs 6.8 billion. But as of end-June 2021, it had increased to Ghs 8.9 billion.

Total liabilities for the period under review also increased significantly from Ghs 12.3 billion to Ghs 14.2 billion driven largely by deposits from the bank’s customers.

Peruse financial statement below:

Gcb by Fuaad Dodoo on Scribd

Source: norvanreports
Tags: Asset quality of State-owned bankBank of Ghana (BoG)capital adequacy ratio (CAR)GCBGCB's NPL nearly triples in 1 yearnon-performing loans (NPL)Unaudited Financial Statement for Q2 2021
No Result
View All Result

Highlights

Gov’t Reopens Talks With PayPal to Restore Full Service Access in Ghana

Financial Sector Assets up 34.6% in 2024 to GHS 525.59 Billion

Banking Sector Soundness Remains Robust in 2024 Amid Strong Profitability, Adequate Capital Buffers

Sha’Carri Richardson Withdraws from US Trials Following Arrest

From Singuluma to El Kaabi: Can CHAN 2024 Unleash the Next Hat-trick Hero?

Ghana to Welcome King’s Baton Relay on August 8 Ahead of 2026 Commonwealth Games

Trending

Features

Parliament Adjourns Sine Die After Intense Legislative Session Marked by Reform Calls and Tributes

August 2, 2025

Parliament Adjourns Sine Die After Intense Legislative Session Marked by Reform Calls and Tributes Parliament has adjourned...

GACL Terminates Evatex Revenue Assurance Contract Amid OSP Probe

August 2, 2025

Cyber Security Authority Flags Rising Mobile Data Scam, Cautions Public

August 2, 2025

Gov’t Reopens Talks With PayPal to Restore Full Service Access in Ghana

August 2, 2025
Bank of Ghana

Financial Sector Assets up 34.6% in 2024 to GHS 525.59 Billion

August 2, 2025

Who we are?

NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World

NorvanReports is a unique data, business, and financial portal aimed at providing accurate, impartial reporting of business news on Ghana, Africa, and around the world from a truly independent reporting and analysis point of view.

© 2020 Norvanreports – credible news platform.
L: Hse #4 3rd Okle Link, Baatsonaa – Accra-Ghana T:+233-(0)26 451 1013 E: news@norvanreports.com info@norvanreports.com
All rights reserved we display professionalism at all stages of publications

No Result
View All Result
  • Home
  • Business
    • Agribusiness
    • Aviation
    • Energy
    • Insurance
    • Manufacturing
    • Real Estate
    • Maritime
    • Tourism
    • Transport
    • Banking & Finance
    • Trade
    • Markets
  • Economy
  • Reports
  • Technology
    • Cryptocurrency
    • Cyber-security
    • Social Media
    • Tech-guide
    • Telecom
  • Features
    • Interviews
    • Opinions
  • Lifestyle
    • Entertainment
    • Sports
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
NORVANREPORTS.COM | Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.