Simon Dornoo, Managing Director of Ghana Commercial Bank (GCB) Limited, has predicted a significant upswing in the bank’s interest income for this year.
He explained that the dip in the bank’s profits for 2011 was anticipated and attributed the development to a combination of lower interest income and higher cost.
He said that the bank was on track with its Q1 2012 results to achieve its objective of becoming the best performing bank in Ghana, adding “this is happening quicker than many would have expected.”
Mr. Dornoo was answering questions from journalists on the 2011 and first quarter 2012 financials released by the bank recently.
The bank’s results reflect the impact of a deep dive exercise undertaken to clean up its books and improve compliance with International Financial Reporting Standards (IFRS).
He revealed that despite the dip in incomes and profit, GCB’s underlying performance remained strong.
GCB recorded a 65 percent dip in profit last year from about GHC50 million in 2010 to GHC17 million in 2011.
Mr. Dornoo explained that the full impact of the dip in profit was however offset by a significant decline in loan impairments and expressed optimism at GCB’s future which he described as “bright and promising”.
Available results of the first three months of the bank’s operations this year showed that profits shot up by 18 percent to GH¢23 million compared to last year.
The MD said the bank was committed to the tenets of good corporate governance which he noted would make a bigger impact on the bank’s bottom line this year.
For the year 2012, GCB is looking at a combination of service outlets which include branches and electronic service points. While it would be optimizing branch space, electronic banking services would also increase. At the moment the bank’s ATMs have been increased from 100 to 200, while branch environment and ambience are high on management’s agenda.