The lost was due to some panic withdrawals, from customers of the collapse banks when the takeover was announced.
Here’s how much GCB lost after taking over collapsed UT Bank and Capital Bank
The Deputy Managing Director (DMD) in charge of Finance at the Ghana Commercial Bank (GCB) , Socrates Affram says the company lost almost half of the deposits it inherited from the UT Bank and Capital Bank within four months after it took over all the liabilities and selected assets of the two collapsed banks.
GCB in August 2017, absorbed total deposits of $437 million (GH¢2.3 billion) from the two banks but by December 2017, four months after the purchase and assumption, Mr Affram said the bank had lost about $190 million (GH¢1 billion) to panic withdrawals.
“The situation exerted undue pressure on the bank’s finances, forcing it to liquidate almost all of its interbank investments to be able to contain the heat,” he said.
He further noted that the Bank also had to fall on the Bank of Ghana (BoG) for liquidity support to the tune of $76 million (GH¢400 million) to be able to meet withdrawals.
“If you scrutinise our published reports, you will notice that in the quarters prior to the assumption, we had a substantial amount of interbank investments and as a bank, because of these heavy withdrawals, we had to liquidate all our investments in that space,” he stated, adding that, “We had to go to the central bank to tell them we were bleeding too much from the process. So, we borrowed $76 million (GH¢400 million) from them.”
The DMD was speaking at the facts behind the figures programme organised by the Ghana Stock Exchange (GSE) for listed companies.
However, the DMD said the bank was able to mobilise some deposits and tapped into some of the businesses they took over, especially in the area of trade which is helping it to regain strength.
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