Second largest bank in Ghana sees a drop in non-performing loans

The latest Ghana Commercial Bank (GCB Bank) group 2017 financials showed the profit declined from ¢318 million for 2016 to ¢234 million Ghana which is a significant decline in profits for last year.

Reasons

GCB’s financials were not accompanied by notes, however, a careful look at the financials one can attribute it to a significant increase in the bank’s Non -Performing Loans for the year under review.

Also, it can be said that GCB's interest income did not witness significant increase, as it went up from ¢1 billion to about ¢1.1 billion. Revenue also went up marginally to reach ¢1.12 billion cedis for this year.

Performance for first quarter of 2018

GCB also released its financial results for the first quarter of 2018. This was after it sought an extension from the Bank of Ghana and Ghana Stock Exchange in releasing the results.

The numbers again showed a significant decline in profits from ¢66 million in 2017  to ¢38 million in 2018.

Non-performing loans NPLs is still a major concern for the Bank. It‘s NPLs went up by 60 percent to ¢25 million for the first quarter of this year.

Deposits have also reached ¢6.9 billion from ¢4.7. Investments by the Bank also went up significantly, from ¢2.5 billion in 2017 to ¢5 billion.

Borrowings also shot up significantly from ¢32 million to ¢1 billion, another development that could be described as interesting. Total Asset went up by 60 percent ¢9.6 billion.

However, total liabilities ending the first quarter of 2018 reached ¢8.3 billion.