GCB Grows Asset Value To GHS 33.1 Billion; Records GHS 423 Million Profit-After-Tax In Q2 2024
GCB Bank for the second quarter of 2024 recorded a total asset base value of GHS 33.1 billion marking a year-on-year increase of GHS 9.48bn when compared to the GHS 23.6bn total asset base value recorded in Q2 2023.
Growth in the bank’s asset value was driven primarily by increments in cash and cash equivalents, loans and advances to customers, and investment securities – mainly government securities.
On a year-on-year basis, the bank’s cash and cash equivalents rose significantly from GHS 4.16bn in Q2 2023 to GHS 10.4bn in Q2 2024; loans and advances to customers within the same review period also rose from GHS 6.07bn to GHS 7.62bn indicating the bank’s commitment to providing credit to the private sector to bolster job creation and employment and economic growth.
Investment securities mainly in government securities also within the review period increased from GHS 10.86bn to GHS 11.78bn, helping to finance government’s short-term liquidity needs.
Liabilities of GCB Bank driven largely by customer deposits with the bank, grew to GHS 29.9bn from the GHs 21.5bn liabilities recorded same period last year.
Customer deposits at the bank grew from GHS 18.94bn in Q2 2023 to GHS 26.18bn in Q2 2024, an indication of the trust that customers have in the bank.
The significant increase in the Bank’s customer deposits further strengthens the bank to enhance its credit creation ability by giving out more loans to businesses for expansion and growth.
The bank’s profit-after-tax at end-Q2 2024 amounted to GHS 423m up from the GHS 333m recorded at end-Q2 2023.
Growth in GCB Bank’s net profit was on the account of an increment in its operating income which stood at GHS 1.88bn at end-Q2 2024.
Earnings per share to shareholders for the second quarter of 2024 based on the bank’s profit-after-tax stands at GHS 3.20, an improvement from the GHS 2.52 earnings per share based on Q2 2023 profit-after-tax.
Loan asset quality of GCB Bank within the review period improved marginally as the bank’s non-performing loans ratio stood at 19.9% of gross loans made as against the 20.2% non-performing loans ratio of gross loans made same period last year.
Despite being on the high side, the bank’s non-performing loan ratio is well below the banking industry’s average non-performing loan ratio of 24.1%.
Capital Adequacy Ratio (CAR) of the bank remained steady over the one-year period at 18.5% which is well above the minimum 13% CAR regulatory requirement by the Central Bank of Ghana.
Good Day.
I speaks on Economic, Finance and Tax issues in Ghana. I grants interviews to TV and radio station nationwide.
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