GCB Bank PLC has declared a GHS 1 per share dividend for the 2024 financial year, pending approval from the Bank of Ghana. This marks a return to dividend payouts after a two-year break, reflecting the bank’s robust financial performance and a rebound in investor confidence.
The dividend announcement, made during the bank’s 31st Annual General Meeting in Accra, follows a record-breaking profit before tax of GHS 1.9 billion, up 23.3% year-on-year. Should the payout be approved, it would total GHS 265 million, offering investors a yield of 15.7%. This is a clear indicator of GCB’s strengthened financial position after navigating challenges such as the domestic debt exchange.
The bank’s Managing Director, Farihan Alhassan, hailed the 2024 results as the best in GCB’s history, underscoring the bank’s recovery and growth. “While the results are a testament to solid execution, there is still room for us to improve cost efficiency,” he said. Alhassan emphasized the bank’s commitment to investing in talent, technology, and service delivery to continue its upward trajectory.
Board Chairman Professor Joshua Alabi also expressed confidence in the bank’s growth, stating that future efforts will focus on enhancing customer experience, digitalisation, and improving sales performance.
The bank’s four-year strategic cycle ended with impressive results: GCB’s loan book grew by 52.8% to GHS 10.2 billion, deposits rose by 58.5% to GHS 34.5 billion, and total assets surged by 57.6% to GHS 42.8 billion. Shareholders’ equity also increased by 41% to GHS 4.3 billion, contributing to a strong capital adequacy ratio of 15.23%, well above the required 13%.
The AGM also saw the appointment of 10 new directors to GCB’s board, including Alhassan as Managing Director and Alabi as Chairman, signaling the beginning of the bank’s next strategic phase. This new leadership will focus on customer-centric services, digital transformation, and people development, steering GCB through its roadmap for 2025 to 2028.
GCB’s return on equity stood at an impressive 32.4%, while its return on assets reached 3.4%. The bank also improved its asset quality, reducing its non-performing loan ratio to 15.1%, down from the previous year.
In line with its corporate social responsibility efforts, GCB Bank invested GHS 12 million in initiatives focusing on education, health, sports, social inclusion, and entrepreneurship. This included supporting youth enterprise programs, providing textbooks, and funding medical treatments.
