- GCB Bank Cuts NPL Ratio to 4.70% as First-Half Earnings Strengthen
GCB Bank PLC recorded a 46.39% increase in profit to GH¢1.23 billion in the first half of 2026, supported by a sharp expansion in customer lending, stronger fee income and increased earnings from fixed-income and foreign-exchange trading.
The lender’s unaudited financial statements showed profit rising from GH¢843.21 million in the corresponding period of 2025, while group profit increased by 45.89% to GH¢1.22 billion.
Profit before tax climbed 45.76% to GH¢1.90 billion from GH¢1.31 billion, despite a significant rise in impairment charges and operating expenses during the six-month period.
The performance reflects a substantial expansion of GCB’s balance sheet as the state-controlled lender increased credit to customers and attracted more deposits.
Total assets rose 48.37% to GH¢67.43 billion at the end of June, compared with GH¢45.45 billion a year earlier. Group assets stood slightly higher at GH¢67.82 billion.
Loans and advances to customers more than doubled, increasing by 105.27% to GH¢21.46 billion from GH¢10.46 billion. Gross loans reached GH¢22.69 billion, comprising GH¢21.54 billion in term loans and GH¢1.14 billion in overdrafts.
The growth in lending helped shift the composition of the bank’s interest income. Earnings from loans and advances increased to GH¢1.59 billion from GH¢1.13 billion, overtaking income from investment securities, which declined to GH¢1.20 billion from GH¢1.44 billion.
Total interest income rose more modestly by 4.14% to GH¢2.91 billion. But a 28.89% fall in interest expense to GH¢564.69 million allowed net interest income to increase by 17.28% to GH¢2.34 billion.
The decline in funding costs was driven by lower expenses on current and savings accounts, time deposits and borrowings.
Interest paid on current and savings accounts fell to GH¢223.84 million from GH¢282.54 million, while the cost of time deposits declined to GH¢77.70 million from GH¢150.61 million. Interest expense on borrowings dropped to GH¢263.15 million from GH¢360.97 million.
Non-interest revenue provided another significant boost.
Net fee and commission income rose 98.00% to GH¢658.72 million, underpinned by higher processing and facility fees and growth in other commissions.
Processing and facility fee income more than tripled to GH¢240.22 million from GH¢78.16 million, while other fees and commissions increased to GH¢491.17 million from GH¢316.29 million.
Net trading income climbed 76.79% to GH¢701.87 million. Fixed-income trading generated GH¢446.13 million, almost double the GH¢224.43 million recorded a year earlier, while foreign-exchange income rose to GH¢255.74 million from GH¢172.59 million.
The combined increase in net interest, fee and trading income lifted operating income by 36.10% to GH¢3.73 billion from GH¢2.74 billion.
The expansion was accompanied by higher credit costs. Net impairment losses on financial assets increased by 139.47% to GH¢197.52 million, compared with GH¢82.48 million in the first half of 2025.
Almost all the impairment charge was linked to loans and advances, which accounted for GH¢195.12 million, while investment securities contributed GH¢2.39 million.
The increase partly reflects the rapid expansion of the loan book, which exposes the bank to a larger volume of credit risk even as the overall quality of its portfolio improved.
GCB’s reported non-performing loan ratio fell sharply to 4.70% from 13.80% a year earlier. The ratio excluding loans classified as losses, however, rose to 2.40% from 1.30%.
Credit impairment allowances declined to GH¢842.90 million from GH¢1.69 billion, while interest held in suspense fell to GH¢179.14 million from GH¢248.62 million.
Personnel expenses increased by 21.99% to GH¢913.56 million, reflecting higher salaries, staff allowances, performance awards and retirement benefit costs.
Performance awards rose to GH¢199.49 million from GH¢140.92 million, while staff allowances increased to GH¢262.83 million from GH¢225.23 million. Wages and salaries climbed to GH¢254.35 million from GH¢224.79 million.
Other operating expenses rose 15.98% to GH¢610.81 million, driven mainly by administrative costs, which increased to GH¢365.42 million from GH¢241.51 million.
Technology and communication expenditure, however, fell to GH¢114.15 million from GH¢157.30 million. Donations increased to GH¢9.89 million from GH¢3.65 million.
Customer deposits increased by 48.76% to GH¢51.18 billion, providing the principal funding base for the bank’s balance-sheet expansion.
Current-account deposits rose to GH¢29.09 billion from GH¢18.24 billion, while savings deposits increased to GH¢18.82 billion from GH¢13.35 billion. Time deposits stood at GH¢3.27 billion, up from GH¢2.81 billion.
Borrowings also rose to GH¢7.22 billion from GH¢4.65 billion, contributing to total liabilities of GH¢60.41 billion.
Shareholders’ equity increased by 42.89% to GH¢7.02 billion, supported by retained earnings of GH¢5.37 billion. The bank paid GH¢265.00 million in dividends during the period.
Cash and cash equivalents increased by 36.68% to GH¢17.66 billion, while net operating cash flow rose to GH¢8.93 billion from GH¢2.89 billion.
The bank invested GH¢5.07 billion in securities during the period, contributing to net cash used in investing activities of GH¢5.16 billion.
Despite the stronger profitability and improved headline NPL ratio, some regulatory indicators weakened.
The capital adequacy ratio declined to 15.90% from 20.00%, while the common equity tier-one ratio fell to 13.90% from 17.00%. The leverage ratio eased to 6.80% from 7.10%, and the liquidity ratio declined to 69.80% from 76.30%.
GCB reported no statutory liquidity breaches but recorded GH¢486,000 in other regulatory sanctions during the period.
The first-half results present a bank expanding rapidly into customer lending while relying less heavily on investment income and lowering its funding costs.
That strategy delivered strong earnings growth and a substantial improvement in the headline NPL ratio. But the rise in impairment charges and decline in capital ratios underline the importance of maintaining credit discipline as the enlarged loan portfolio matures.
