Leading local bank, GCB Bank Limited has recorded an overall strong performance in the year 2021, as seen in its impressive growth in profits, both before tax and after tax as well as the increase in the loans and advances given to the bank’s customers last year as compared to the situation in 2020.
From growing by about 7% in 2020 when compared to its performance in 2019, GCB Bank saw its profit before income tax grow by a whopping 35.5% in 2021. Profit before income tax grew from about GH¢ 601.9 million in 2020 to GH¢809.8 million last year.
A closer look at the banks statement of profit or loss shows that the growth can be tied to the strong improvement in the banks funded income, that is, its net interest income, and the bank’s non-funded income, that is, its net fee and commission income. Both grew in 2021 by about 25.7% and 28.7% respectively.
GCB Bank’s profit for the year after income tax expense is deducted stood at GH¢ 556.7 million in 2021, representing a growth of about 27% over the outturn in 2020.
A look at the bank’s statement of financial position as at 31st December 2021 also showed strong growth in the total assets of the bank. From a total asset value of about GH¢15.3 billion in 2020 total assets grew to GH¢18.2 billion in 2021, representing a growth of about 19%.
Another bright spot in the financials of GCB Bank is the growth in the value of the loans and advances given to customers. While that line item grew by less than 1% in 2020, which is in line with the banking industry’s preference for less risky assets, especially during the period of the pandemic, the banks loans and advances to customers’ portfolio, grew by about 19% in 2021. The growth in the bank’s investment securities slowed down in 2021, growing by 13.2% when compared to the 43% growth witnessed in 2020.
GCB Banks’ ability to handle losses as depicted by its Capital Adequacy Ratio of 20.9%, is strong and well above the banking industry average of 19.6 % as at February 2022, and also well above the current revised regulatory minimum of 13 %.
Finally the non-performing loans ratio witnessed some deterioration in 2021. The ratio went from 8.71% in 2020 to 15.98% in 2021, a development that needs to be checked.