GCB Bank PLC has announced a dividend of GHS1 per share for the 2024 financial year, subject to regulatory approval from the Bank of Ghana, signaling a return to dividend distributions after a two-year pause.
This decision was revealed during the bank’s 31st Annual General Meeting in Accra, following a record performance that resulted in a pre-tax profit of GHS1.9 billion, reflecting a 23.3% increase compared to the previous year.
If sanctioned, the dividend will total GHS265 million, yielding 15.7 percent, indicating the bank’s regained financial stability after the domestic debt exchange challenges.
This also demonstrates increasing investor confidence as GCB Bank implements its strategy to regain industry leadership, having risen to second place among competitors in critical areas such as deposits, loans, and total assets in 2024.
The Managing Director, Farihan Alhassan, characterized the 2024 results as the most robust in GCB’s history in nominal terms, acknowledging that while the outcomes showcased solid fundamentals and effective execution, there remains potential for improved cost efficiency.
He affirmed management’s dedication to enhancing investments in talent, systems, and service delivery to maintain this positive trajectory. Board Chairman, Professor Joshua Alabi, recognized the significant advancements achieved during the previous strategic cycle and highlighted the potential to build on these successes by prioritizing customer experience, digitalization, and improved sales initiatives as part of the bank’s new growth strategy.
Throughout its recently concluded four-year strategy, GCB increased its loan portfolio by 52.8% to GHS10.2 billion and raised total deposits by 58.5% to GHS34.5 billion. Total assets grew to GHS42.8 billion, marking a 57.6% increase that surpassed the industry average, while shareholders’ equity rose by 41% to GHS4.3 billion, enhancing the bank’s capital adequacy ratio to 15.23%, significantly above the regulatory minimum of 13%.
The Annual General Meeting also signified the appointment of ten new directors to the restructured board, with Alhassan taking on the role of Managing Director and Alabi serving as Board Chairman. This newly formed leadership team is anticipated to guide the next phase of GCB’s strategic plan from 2025 to 2028, which is centered on customer focus, digital innovation, and personnel development.
The bank achieved a return on equity of 32.4%, while the return on assets was recorded at 3.4%. Additionally, asset quality saw improvement, as the non-performing loan ratio decreased to 15.1%, a reduction from the previous year.
In 2024, GCB Bank allocated GHS12 million towards corporate social responsibility initiatives, emphasizing education, health, sports, social inclusion, and entrepreneurship. Significant efforts included donations of textbooks, financial support for medical treatments, and backing for youth enterprise programs such as “The Entrepreneurship in You” initiative.
