GCB Bank PLC says it is focused on accelerating its digital capabilities as a key driver to dominate the industry and create shareholder value.
Chairman of the Board, Mr. Jude Arthur, told shareholders at the 28th Annual General Meeting (AGM) that the future of banking and other businesses in general continues to be underpinned by digital transformation, adding that institutions that did not prioritize digitization were going to find it difficult to remain competitive in the market.
“Therefore, accelerating digital capabilities as a key driver to dominate the industry and create shareholder value is imperative,” he said, adding that the bank will continue to accelerate its digital agenda. by making the right investments to extract the maximum value for the benefit of customers and stakeholders.
Some initiatives as part of the bank’s digitization drive include setting up a Data Management Unit to accelerate the development of relevant and innovative solutions, a Security Operations Center (SOC) to make the bank more responsive to cybersecurity threats and an upgrade to the bank’s banking core. platform from version 12.0 to 14.3 to improve service delivery.
Overall, GCB posted a strong financial performance in 2021 thanks to strong internal collaboration between business units and support functions despite the national and global challenges posed by Covid-19.
Mr. Arthur said growth has been achieved based on controlling costs, improving staff performance, management system and increasing the Bank’s leadership in key areas to improve implementation. implementation of the Bank’s strategy.
“We remain focused in our quest to continuously deliver value to you, our shareholders. We can say with confidence that the Bank is well on its way to becoming the dominant bank in Ghana,” he said.
The AGM which was held virtually allowed shareholders to review and adopt the directors’ and auditors’ reports and the financial statements for the year ended December 31, 2021.
GCB Bank recorded a pre-tax profit of GH¢831.98 million in 2021 compared to GH¢602 million in 2020, an increase of approximately 36.2%.
After-tax profit increased by 28.5% to GHS 572.28 million after adjusting for a 5% levy applied following the enactment of Financial Sector Recovery Law 1067.
GCB Bank has recommended a dividend of GHS 0.50 per share, representing a 100% increase in the dividend paid in 2020, subject to Bank of Ghana approval.
Net interest income increased by 25.6%; from GHS 1,508.70 million in 2020 to GHS 1,894.84 million. Net fee and commission income also increased from GHS 277.98 million in 2020 to GHS 359.53 million in 2021, an increase of 29.3%.
GCB improved its cost/income ratio from 58.0% in 2020 to 52.2% in 2021.
Mr Arthur said GCB Bank’s strong performance in 2021 was also due to the effective management of COVID-19 by the government and health authorities and the adherence to COVID-19 protocols by the public.
At the conclusion of the meeting, shareholders adopted the audited 2021 financial statements and approved all resolutions on the agenda, including the declaration of a dividend, the re-election of the board of directors retiring by rotation, the re-election of the directors, the ratification of the appointment of two non-executive directors and one executive director, the remuneration of the directors and the authorization of the directors to fix the remuneration of the auditors.
The Bank increased its assets to GHS 18.40 billion, representing a year-on-year growth of 19.1%, driven mainly by loans and advances to customers and securities investments, respectively.
Customer deposits, which remain a key part of the balance sheet, increased by 16.2%, from GHS 11.96 billion in 2020 to GHS 13.90 billion in 2021.
The Bank’s equity grew by 23.3%, from GHS 2.19 billion in 2020 to GHS 2.70 billion in 2021.
GCB Bank’s capital adequacy ratio of 20.9% is significantly above the prudential requirement of 11.5%. An indication that the Bank is sufficiently capitalized.
The Bank’s earnings per share increased by 28.6%, from GHS 1.68 in 2020 to GHS 2.16 in 2021.