There was significant improvement in the bank’s impairment charge on loans and advances which dropped from GHC70.9 million in 2010 to GHC10.6 million in 2011.
Operating expenses was GHC251.3 million in 2011, representing 31 percent higher than the previous year’s figure. This was driven mainly by staff costs, depreciation charges and ICT running costs.
Profit-before-tax was GHC31.1 million as compared to GHC71.3 million in 2010, it was down by 56 percent mainly due to a combination of anticipated revenue shortfall from restructuring of portfolios and higher costs.
Also, profit-after-tax was GHC17.9 million compared to GHC50.9 million realised in 2010.
Speaking at the bank’s AGM in Accra recently, the bank’s board chairman, Fritz A. Gockel said the decline in profits reflected the impact of some of changes embarked upon by the bank.
“The revenue shortfall was a direct consequence of a 50 percent reduction in the loan book, which was necessary to bring the bank’s exposure to the public sector within limits. However, the full adverse effect on net income of such structural change was offset by strong income performance, lower funding costs and significantly lower credit impairment charges.”
The bank also recorded a cost income ratio of 87 percent while impairment charge on loans and advances recorded GHC10.6 million, down by 85 percent from the GHC70.9 million reported the previous year.
In line with its strategic focus, Dr Gockel noted that GCB will pursue broad objectives to ensure the delivery of quality service and the creation of value for shareholders. The bank’s capital adequacy ration was 11 percent compared to that recorded for 2010.
“In this direction, the bank will deepen its wide area network, deploy modern systems and technology to provide integrated back and front office operations that will enhance quality service delivery.”
Global Finance Magazine, a publishing firm, in collaboration with International Monetary Fund (IMF) and the World Bank, selected GCB as the ‘Best Emerging Market Bank’ for 2011.
By Samuel Boadi