The GCB Bank PLC has sought the approval of its shareholders for GH₵1 billion to meet the regulatory capital adequacy ratio requirements and strengthen access to funding markets in order to bolster confidence in the Bank.
This target has been necessitated in the bid to address the impact of the Domestic Debt Exchange Program (DDEP).
The Bank recorded a loss before tax of GH₵743.5 million in 2022 compared to a profit before tax of GH₵832 million in the prior year.
This loss was largely due to the impairment loss on investment in government securities of GH₵1.8 billion owing to DDEP.
Speaking at the Bank’s 29th Annual General Meeting, the Board Chairman, Jude Kofi Arthur, said the request is to develop a robust and comprehensive capital plan.
“The Bank recorded a Loss Before Tax of GH₵743.5 million in 2022 compared to a Profit before Tax of GH₵832.0 million in the prior year. This loss is largely due to the impairment loss on investment in government securities of GHS1.8 billion. It is worth noting that our projected profit for the Year 2022 without the impairment would have been in excess of GH₵1.0 billion,” he said on Friday.
While acknowledging the Bank’s losses due to the DDEP, Mr Arthur noted that some gains were also attained.
According to him, the Bank recorded revenue of GH₵3 billion representing an increase of 24 percent compared to 2021.
“The Bank generated a record revenue of GH₵3.0 billion representing an increase of 24% or GH₵578.2 million compared to 2021. The growth was mainly driven by an 11% increase in Net Interest Income and a 7% rise in Net fees and commissions. Net Trading income was up by 209% largely from margins from foreign exchange trading on account of currency volatility.
“The Net Interest Income contributed 70% of our total revenue with the Noninterest Income accounting for the remaining 30%. Operating expenses increased by 29% largely due to the cedi depreciation against the USD and the surge in inflation to 54.1% from 12.6%. These resulted in a cost-to-income ratio of 54.4% in 2022 compared to 52.6% in 2021,” he highlighted.
On his part, the Managing Director, Kofi Adomakoh, gave the assurance that the GBC Bank will certainly bounce bank.
He believed that it is indigenous banks that grow the economy, thus, GBC PLC needs to be supported in order to transform the economic trajectory of the country.
“We are not asking to be favoured, we need to be supported where it can and that is why our shareholders have behaved the way they did today. We’re asking shareholders to see the potential in GCB and support us because GCB is a great bank,” he said.
Source: Myjoyonline.com
