GCB Bank declares GHS1 dividend, pending BoG approval

GCB Bank PLC has approved a GHS1 per share dividend for 2024. This is pending regulatory approval from the Bank of Ghana. It marks a return to dividends after two years.

The announcement was made at the bank’s 31st Annual General Meeting in Accra. The decision follows a record-breaking performance, with a profit before tax of GHS1.9 billion. This represents a 23.3% increase compared to last year.

If approved, the dividend will total GHS265 million. It will also yield 15.7%, showing the bank's restored financial strength after recent challenges. This reflects growing investor confidence as GCB Bank aims to reclaim industry leadership.

In 2024, GCB Bank ranked second among peers in deposits, loans, and total assets. Managing Director Farihan Alhassan called this performance the strongest in GCB’s history. He noted solid fundamentals but acknowledged room for better cost efficiency.

Management plans to invest more in talent and service delivery to maintain momentum. Board Chairman Professor Joshua Alabi highlighted progress made during the last strategy cycle. He stressed focusing on customer experience and digitalization for future growth.

Under its previous four-year strategy, GCB expanded its loan book by 52.8% to GHS10.2 billion. Total deposits grew by 58.5% to GHS34.5 billion, while total assets rose by 57.6% to GHS42.8 billion.

Shareholders’ equity increased by 41% to GHS4.3 billion, improving the capital adequacy ratio to 15.23%. This is well above the regulatory minimum of 13%.

The AGM also saw ten new directors appointed to the board, including Alhassan and Alabi in key roles. The restructured leadership will guide GCB’s strategic roadmap from 2025 to 2028.

This plan focuses on customer-centricity, digital transformation, and people development. The bank's return on equity reached 32.4%, with return on assets at 3.4%. Asset quality improved as well; non-performing loans dropped to 15.1%.

In addition, GCB Bank invested GHS12 million in corporate social responsibility projects in 2024. These projects focused on education, health, sports, social inclusion, and entrepreneurship initiatives like “The Entrepreneurship in You” program.