GCB Bank sustains growth in harsh economic environment
The Board of Directors of GCB Bank Limited has declared a cash dividend payment of 32 Ghana Pesewas per share for the 2014 financial year, compared to the 25 Ghana pesewas declared in 2013.
This translates to a pay out of GH¢84.8 million, which represents an increase from GH¢4.5 million in 2010 to GH¢84.8 million in 2014.
Mr Daniel Owiredu, Board Chairman of the Bank, at its 21st Annual General Meeting in Accra on Friday, said GCB’s Basic and Diluted Earnings per share was GH¢1.06, which was up 23.3 per cent from GH¢0.86 in 2013 and marked three consecutive years of generating such growth.
This, he said was driven by revenue growth of 29 per cent which translated into GH¢731 million, and the Bank achieved a pre-tax profit of GH¢395 million, which was up 25 per cent over the GH¢317.1 million recorded in 2013.
Total assets rose by 25 per cent to GH¢4.3 billion, while the Net Asset Value per share increased by 48 per cent to 2.60 Ghana pesewas from 1.76 in the previous fiscal year.
Mr Owiredu said the Board was proud to note that the price of a GCB share on the Ghana Stock Exchange also maintained its upward momentum in 2014, gaining 13 per cent to outperform the Stock exchange’s composite index which witnessed increase by just five per cent in the bearish market.
He said the dividend declared was therefore based on the bank’s strong Capital Adequacy Ratio standing at 23 per cent at the end of 2014 compared to 18 per cent twelve months earlier.
Mr Owiredu however said all the gains were made despite the challenging global and unfavourable macro-economic environment which included the steadily weakening cedi exchange rate regime that fuelled inflation and deepened the challenges of notable energy supply shortfalls.
He insisted that Ghana’s economy is not insulated from the challenging global economic developments, particularly the effects of the slum in commodity prices in addition to other domestic factors.
He said those compelling factors conjoined to slow down national economic activities and output, leading eventually to a lower Gross Domestic Product growth than registered in the previous year.
Mr Owiredu said in spite of the challenging outlook the Board remains committed to the transformational changes needed for the Bank to attain a sustainable competitive position
“We shall continue to invest in the Bank’s risk infrastructure to ensure that it is able to sustain the improving trend in its ratings, which was important for enhanced access to money and capital markets”.
The Board Chairman said although there are many other trends that continue to shape the responses both expected and unforeseeable challenges, it is counting on the effective implementation and monitoring of the government’s programme with the International Monetary Fund in order to mitigate some of the vulnerabilities in the society and restore some measure of confidence in the money and currency markets.
Mr Simon Dornu Mnanging Director said the Bank would remain focus on building the required competences and capabilities needed to deliver its growth and performance agenda.
Source: GNA