https://www.myjoyonline.com/gcb-registers-4-39-growth-in-profit-in-2020-despite-covid-19-impact/-------https://www.myjoyonline.com/gcb-registers-4-39-growth-in-profit-in-2020-despite-covid-19-impact/

Ghana’s second largest bank, GCB Bank recorded a modest growth in earnings for last year, as profit shot up by 4.39% to GH¢439 million.

According to its 2021 Audited Financial Statement for last year, GCB recorded a significant loan loss of GH¢219 million last year, largely due to the coronavirus pandemic, which compelled the bank to restructure some loans. 

That impacted on its total income despite recording significant growth in all its income lines.

Net interest income grew by 22% year-on-year to GH¢1.4 billion, whilst trading income also shot up by 17.5% year-on-year to GH¢166 million.

Shareholders will however enjoy some GH¢1.66 pesewas earnings per share, higher than the one received in 2019.

The balance sheet continued to remain strong as its size grew to GH¢29 billion in 2020 compared to a little above GH¢22 billion the previous year.

With regard to the robustness of the bank, non-performing loans went up by 2.7% to 8.71%, but far below the industry average of about 15.5%.

Capital Adequacy Ratio-a measurement of a bank’s available capital to its Risk Weighted Assets was also way above the industry average, at 20.7%.

This financial soundness indicators signify a safe, sound and robust bank.

Financial Soundness Indicators

 December 2020December 2019
Capital Adequacy Ratio20.7%17.5%
Non-Performing Loans8.71%6.01%
Liquidity ratio64%60%

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DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.