… approves GH¢66 million as dividends at 27th AMG
The first and largest indigenous bank in the country, GCB Bank has credited its digitalisation drive, particularly its telco-independent digital mobile money wallet, G-Money as well as the GCB Mobile App for its 23.5% growth in total assets for full-year 2020.
Addressing shareholders at the 27th Annual General Meeting (AGM) of the bank, Chairman of the Board, Jude Kofi Arthur commended the shareholders for their trust and loyalty to the lender, despite the challenges posed by the COVID-19 pandemic in the year under review. He added that the bank will remain strategic in its approach to attaining sustainable growth and profitability.
According to the bank’s financial results, total assets grew by 23.5% from GH¢12.52 billion to GH¢15.45 billion for the year under review and this was largely attributed to the rise in the value of deposits, which appreciated by 21.8% to GH¢11.96 billion.
Additionally, profit before tax (PBT) grew by 6.5% to GH¢ 610.83 million in 2020, from GH¢ 573.67 million in the previous accounting period, with operating income increasing from GH¢1.57 billion to GH¢1.97 billion, representing a 25.1% appreciation year-on-year.
Disciplined cost management was attributed for helping achieve a positive jaws ratio of 3% and a Return on Equity (ROE) of 22% despite COVID-19 related expenditure as Consumer Bank delivered profit growth of 10%.
Offering a rationale for the bank’s performance, its Managing Director, John Kofi Adomakoh, said: “Investment in electronic banking solutions and digital capabilities, as well as intensified sales and marketing, helped us grow transaction volumes, win new customers, increase deposits and grow loans.”
He also commended the bank’s staff, who he described as its ‘greatest asset’ for their display of verve during what was a socially and economically challenging year.
Mr. Adomakoh added that the company remains focused on its strategy to deliver sustainable growth both in the medium and long-term riding on the pillars of revenue growth and profitability; operational resilience; talent development and an enabling culture as well as its quest to assume a leadership position in the Wholesale Banking market.
“GCB has an agenda to be a catalyst for the development of this nation. Our focus is going to be on developing indigenous businesses, helping businesses transform from SME status to ultimately a multi-national… We will also help push the agenda of government to help drive some of its initiatives. To do all of these, we must have the resources and technology and we must have the ability to create value for shareholders,” added.
Shareholders approved the sum of GH¢66 million to be paid as dividend, translating to a dividend payment of GH¢0.25 per share. The figure represents a 25% appreciation over 2019 and is the second consecutive year that GCB Bank is declaring a dividend despite the COVID-19 pandemic.
At the meeting, shareholders almost unanimously voted for a change of name; acquiring the suffix for Public Liability Company or PLC, in accordance with the provisions of section 21(1)(b) of the Companies Act, 2019 (Act 992), which requires that all public companies limited by shares must have the expression ‘Public Limited Company’ or the abbreviation ‘PLC’ as the suffix to their registered name.
There were votes as well to ratify the appointment of Messrs John Kofi Adomakoh and Emmanuel Odartey Lamptey as Managing Director and Deputy Managing Director for Operations, respectively. Remuneration for the Board was approved of and remained unchanged from last year at GH¢3.85 million, whilst the Board was authorised to fix remuneration for Auditors, which stood at GH¢1.61 million for 2020.
Following recommendations on social distancing as part of measures to reduce the spread of the coronavirus, and directives by the Registrar-General’s Department, this year’s AGM was hybrid with most of the shareholders joining virtually.