GCB Bank approves GH¢66m dividend for shareholders
Shareholders of GCB have unanimously approved the proposal by the Board of the bank to pay a total dividend of more than GH¢66 million.
This follows the move by the bank to reward its shareholders, after ending the 2020 financial year with a significant increase in profit.
The approval took place at the Annual General Meeting in Accra, and it’s 25% more than the one received in relation to the 2019 financial year.
The final dividend will be paid on Friday, June 18, 2021.
According to the bank’s 2020 Annual Report, GCB is “pursuing prudent dividend policy that ensures reasonable return to shareholders whilst maintaining the growth and appreciation of the share value.
GCB outlines strategy that hinges on 3 pillars
The bank also outlined a strategic plan that hinges on three pillars, going forward.
The pillars are Revenue Growth and Profitability, Operational Resilience as well as Talent and Culture.
Managing Director of GCB Bank, John Kofi Adomakoh said the strategy is due to the constantly changing business environment and disruptions across many fronts.
This calls for the business to ensure its strategy is relevant and well-positioned to proactively meet the needs and expectations of its clients, a decision that will generate sustainable profits and returns.
“Several developments impacting the banking sector, mainly African Continental Free Trade Area (AfCFTA), intensifying competition from both industry and non-industry players including FinTechs have reshaped the competitive landscape requiring the need to refresh our strategy and strengthen our execution”, he said.
2020 Financial Performance
Despite the challenges of the COVID-19 pandemic, GCB Bank performed reasonably well during the year under review.
The improvement in financial results was supported by balance sheet growth and income diversification.
It recorded growth in Profit before Tax of GH¢610.83 million, from GH¢573.67 million in 2019, up 6.5% attributable to revenue growth.
Net interest income was up 29.1%, from GH¢1.16 billion to GH¢1.5 billion.
Net trading income also grew by 17.6% to GH¢166.63 million, from GH¢141.75 million, whilst net fees and commission income also increased by 15.1% to GH¢277.98 million, from GH¢241.51 million.
The cost to income ratio [efficiency] improved to 57.4%, compared to 59.1% in 2019.
Total assets recorded a growth of 23.5% from GH¢12.52 billion in 2019 to GH¢15.45 billion in 2020. The growth was funded mainly from a 21.8% increase in deposits from GH¢9.82 billion in 2019 to GH¢11.96.