Business

GCB’s profit before tax hits GH₵700m in first half of 2024

Published

4 months ago

August 26, 2024

GCB Bank recorded strong profit growth in the first half of 2024 (1H 2024) compared to the same period in 2023.

This strong performance was primarily driven by a significant increase in customer deposits year-to-date (YTD), coupled with dedicated efforts at optimizing operational efficiency.

The 1H 2024 financial performance results from the Bank’s strategic shift to a strong focus on sales, transaction banking and a customer-centric approach.

Profit Before Tax for the period increased by 35 per cent year-on-year (y/y) to GHS 700.3 million, driven by growth in interest income and supported by a 21 per cent year-to-date increase in customer deposits and an increase in net fees and commission income.

Total revenue increased by 5 percent y/y to GHS 1.89 billion at 1H 2024.

Net interest income grew by 5 per cent y/y to GHS 1.43 billion in 2024, with net fees and commission income also increasing by 28 per cent to GHS 245.4 million.

Increased earnings from electronic services, trade services, processing and facility fees drove the net fees and commission growth over the half-year period.

Additionally, net trading income contributed GHS 211.8 million to revenue in 1H, 2024.

Operating expenses for 1H 2024 came in at GHS1.08 billion, up 17 per cent from GHS 921.1 million in 2023.

This increase was driven by inflation and currency depreciation pressures.

Impairment loss on financial assets for the period declined by 70 per cent y/y to GHS 104.8 million in 1H 2024.

This sharp decline in impairment loss resulted from the Bank’s enhanced risk management and risk mitigation strategies.

The balance sheet also grew substantially in the review period. Total assets surged to GHS 33.20 billion, representing a 22 per cent increase YTD.

A significant deposit growth, which reflects clients’ unwavering confidence in the Banks’ resilience amidst the prevailing macroeconomic uncertainties, underscored the increase in the balance sheet size.

Shareholders’ Equity surged by 15 per cent YTD to GHS 3.22 billion in 1H 2024 due to the increased profit for the period, bolstering the Bank’s financial performance and increasing shareholders’ value.

This growth in equity underscores our strong financial footing and demonstrates the Bank’s capacity to generate internal capital.

Earnings per share also grew, rising from GHS 2.52 in 1H 2023 to GHS 3.20 in 1H 2024. Also, the Capital Adequacy Ratio stood at 18.5 percent, well exceeding the regulatory requirement of 10 percent.

Return on Equity reached 26.2 per cent, reflecting efficient capital utilisation, while Return on Assets settled at 2.8 per cent.

Commenting on the 1H 2024 performance, Mr John Kofi Adomakoh, Managing Director of GCB Bank PLC, said: “GCB continues to record strong and higher quality earnings as well as improved returns to shareholders despite the challenges and uncertainties in the market combined with intensifying competition”.

Mr. Adomakoh explained that a strong focus on sales and transaction banking, growth in the Bank’s client base and growing relationships, stringent credit underwriting standards coupled with cost-effectiveness, strong governance, and effective risk management and control drove the 1H 2024 performance.

Concerning the intended capital raise, Mr. Adomakoh indicated that the Bank decided to put the capital raise on hold on the back of strong financial performance in 2023.

He revealed the Bank’s commitment to continue to rebuild capital through future profits while assessing capital requirements on an ongoing basis amidst heightened uncertainties in the operating environment and regulatory developments.

The GCB Managing Director shared Management’s commitment to maintaining optimal capital levels to support strategic and business objectives to drive long-term success and returns for shareholders.

The Bank’s 1H 2024 results thus confirm that GCB remains a beacon of financial stability and resilience, well-prepared to navigate the intricate financial landscape in Ghana with steadfastness, confidence and strategic foresight.

Source: citinewsroom.

Business

Ghana’s insurance industry records 22% growth in investments assets

Published

2 months ago

October 30, 2024

Net News Ghana

Ghana’s insurance industry recorded a substantial 22% growth in its investment assets in 2023, reaching a total value of GH₵10.5 billion, up from GH₵8.6 billion in 2022, according to the latest Bank of Ghana’s 2023 Financial Stability Review report.

Ghana’s Insurance industry seems to have weathered the storm of the COVID-19 pandemic and the domestic debt exchange programme.

The life insurance sub-sector led this growth, with investment assets valued at GH₵7.0 billion as of December 2023, compared to GH₵3.5 billion in the non-life sector.

Fixed-income assets remain a common investment strategy across life and non-life sectors.

However, the share of government securities in investment portfolios has seen a notable decline, possibly influenced by the effects of the Domestic Debt Exchange Programme (DDEP).

In the non-life insurance sector, holdings in government securities decreased by 13%, reducing their share from 38% in 2022 to 27% in 2023.

Fixed deposits in this sector now make up 23% of the investment portfolio, with listed securities and investment properties contributing 27% and 19%, respectively.

Similarly, the life insurance sector recorded a 9% reduction in government securities, dropping from 49% of its portfolio in 2022 to 40% in 2023.

This shift has been accompanied by a rise in other asset classes, with investments in properties growing to 23% and fixed deposits increasing by 8 percentage points to 21%.

These shifts indicate strategic diversification in response to market conditions, positioning the insurance industry for resilience and continued growth.

The growth in investment assets and diversification efforts signal the sector’s commitment to adapting to economic dynamics while providing financial stability for policyholders.

#GhanaPolls2024

#CitiVerify

#ElectionBureau

Source: citinewsroom.com

Business

Africa Remittance Conference UK scheduled for September 21

Published

3 months ago

September 18, 2024

Net News Ghana

The much anticipated Africa Remittance Conference UK 2024 dubbed “Market of Remittance” will be hosted in London, the capital of the United Kingdom on Saturday September 21, 2024.

It is scheduled to take place at the Canary Riverside Plaza Hotel (E14 8RS) in East London from 12noon to 6pm.

The event is being organized by Akwaaba UK in collaboration with Emergent, OmniBSIC BankGhana Limitedand Unity Link, under the theme“Leveraging Fintech and Banking Partnership for Growth”.

According to the organizers, Akwaaba UK, Africa Remittance Conference UK 2024, is a premium networking brand and the largest gathering of leading players, key and relevant stakeholders in the Remittance industries in the United Kingdom, across Europe and Africa.

Speaking on the rationale behind the event, the Chief Executive Officer of Akwaaba UK, Mr. Dennis Tawiah, indicated that the annual event is the first of its kind and a platform created for all recognized players in the Remittance Industry in the United Kingdom, Europe and Africa.

“We are excited to be hosting the Africa Remittance Conference UK 2024 after years of working with key players within the sector within the UK, Europe and across the African continent,” he said.

According to him, “We have identified the need to enhance growth and development in the sector. Remittance contributes to ending poverty and hunger, promoting good health, quality education, clean water and sanitation, decent work and economic growth, and reducing inequalities.”

On his part, the International Relations and PR Manager for Akwaaba UK, Chris Koney, highlighted the importance of the Africa Remittance Conference UK 2024and the need for corporate entities to be interested in the conference.

“Strategic partnerships and progress on remittances go hand in hand. Participants at the Africa Remittance Conference UK 2024 will acquire valuable insights, new trends and get to know opportunities in the sector. In addition, the event provides an avenue to explore ways of developing the industry, practitioners and other professionals within the value chain,” he further stated.

In addition to the list of distinguished resource persons and speakers, there will also be Networking and Business-to-Business sessions, Deal Room for Negotiations, Investor Pitching sessions and Exhibition of Innovative Financial and Fintech products and services

Business

Shippers’ Authority, MoT secure release of six Ghanaian cargo trucks in Burkina Faso

Published

4 months ago

September 5, 2024

Net News Ghana

The Ghana Shippers Authority (GSA) with support from the Ministry of Transport (MoT) has secured the release of six Ghanaian cargo trucks detained at the Dakola border in Burkina Faso.

In April of this year, the trucks were initially detained by Burkinabe Customs (Douanes) on suspicion of transporting prohibited goods from Ghana into Burkina Faso.

In June 2024, GSA intervened in the detention of twenty trucks carrying unwholesome cargo, flagged by Burkinabe authorities, after Joint Association of Port Transport Unions-Ghana’s (JAPTU-Ghana) efforts to resolve the issue proved unsuccessful.”

To resolve the issue, the Ghana Shippers’ Authority (GSA) and the Ministry of Transport held a series of stakeholder meetings at the Dakola border and Tema port, and collaborated with its Burkinabe counterpart, the Conseil Burkinabe Des Chargeurs (CBC), to secure the release of the detained trucks.

Group Picture with Staff of the Ghanaian Embassy

On 20th August 2024, Frederick Atogiyire, Northern Zonal Manager of the Ghana Shippers’ Authority (GSA), led a team to meet with Dr. Kassoum Traore, Director General of the Conseil Burkinabe Des Chargeurs (CBC), and his team to discuss the detained trucks.

Dr. Traore clarified that under Burkinabe law, unwholesome cargo can result in the confiscation of both the cargo and trucks.

He assured the team that progress was being made and that an out-of-court settlement had been reached with the shipper, paving the way for the trucks’ prompt release.

Interactions with affected truck drivers at the Dakola border

In a media briefing in Tamale, Frederick Atogiyire, Northern Zonal Manager of the Ghana Shippers’ Authority (GSA), announced that the Burkinabe Customs had efficiently processed the trucks for departure, enabling them to resume their journey to Ouagadougou on 25th August 2024, and subsequently return to Ghana on August 29, 2024.

Mr. Atogiyire expressed his appreciation for the Burkinabe Authorities’ concerted efforts in facilitating the trucks’ release.

Source: Citi Newsroom