GCB Bank’s Profit Drops by 29% in 2017
The profit of GCB Bank dropped by about 29 percent in 2017.
The bank’s profit declined from 299 million cedis to an estimated 213 million cedis between 2016 and 2017.
Meanwhile, for the first three months of this year, GCB Bank’s financial report shows another drop in profits.
The financial statement released by GCB Bank shows that even though revenue went up by 50.6 million cedis, the bank witnessed an increase in expenditure which impacted on the profits for the period.
For instance impairment charges on loans and advances (49.9 million cedis), personnel expenses (362.8 million cedis), depreciation and amortization (57.7 million cedis) as well as other operating expenses (336.3 million cedis), all recorded increases for the period.
As a result, the profit after tax and other deductions, amounted to 213 million cedis.
In 2017, GCB Bank paid dividends of 100.7 million cedis compared to the 87.45 million cedis paid in 2016.
Again, the bank’s stated capital which refers to the bank’s ability to absorb losses in cases of liquidation, still remained at 100 million cedis.
Absorption of UT, Capital banks delays publication of financial statements
The delayed financial report for 2017 has been instigated by the absorption of UT and Capital Banks by GCB Bank in August 2017.
The bank had requested an extension to May ending to complete the compilation of the documents.
GCB Bank’s profits, revenue drop in 2018 Q1
Meanwhile, between January and March this year, GCB Bank recorded a drop in both income and profit.
For the three months period, the bank’s income dropped by 10.3 million cedis representing 3.83%.
While profit for the period also dropped by 26 million cedis representing 41.54%.
Publish audited account of GCB now – Adongo
The Member of Parliament for the Bolgatanga Central Constituency, Isaac Adongo had earlier written to the Bank of Ghana urging it to release audited accounts of the GCB bank.
Adongo said he has a firm conviction that GCB bank is struggling after taking over two domestic banks – Capital and UT in 2017.
The MP also said the bank had not released its audited report since the beginning of the year which is against the banking regulations adding that the issue is causing “heightened anxiety” among stakeholders in banking sector.
“There is a law that mandates our banks to publish their audited financial statement three month after the end of the year and that is clearly captured in the banking and special deposits Act 930. In that Act, specifically under section 92, it makes it mandatory to file their returns,” Adongo added.