Shareholders of GCB Bank have voted overwhelmingly to allow the bank to raise up to GH¢1 billion in additional equity capital. This injection of funds will primarily be used to meet regulatory capital adequacy ratio requirements, enhance deal-making capacity, and take advantage of market opportunities. The bank’s Managing Director, Kofi Adomako, expressed gratitude for the shareholders’ support, emphasizing their confidence in the bank’s management and board during challenging times for the financial industry.
Capital Adequacy Ratio
GCB Bank aims to increase its Capital Adequacy Ratio (CAR) from 7.59% to 14% by the end of this year and aims to achieve a CAR of 18% by the end of 2025. In the first quarter of 2023, the bank experienced positive financial performance, with a 32% increase in pre-profit compared to the previous year. However, Mr. Adomako called for patience, acknowledging the need for the economy and the industry to heal.
2022 Year Review
During the review of 2022, GCB Bank witnessed significant growth in total assets, net trading income, customer deposits, and total loans and advances. However, due to the exchange of eligible bonds under the Domestic Debt Exchange Programme, the bank recorded an impairment loss, resulting in a loss before tax for the year.
The bank’s focus moving forward includes increasing non-funded income, minimizing operational costs, rebuilding capital, strengthening liquidity, and enhancing earnings generation from non-funded sources.