Leading indigenous bank, GCB Bank PLC has announced the payment of a final dividend of fifty pesewas per ordinary share, representing GHC132.5 million, to be paid to its shareholders, for the financial period ended December 31, 2021.
The amount represents a 100 per cent increase compared to the 2020 figure of 0.25 pesewas, following the Bank of Ghana’s approval.
Speaking at the 28th annual general meeting, Board Chairman of GCB Bank PLC Jude Kofi Arthur, noted that the amount will be paid to shareholders on 1st august 2022.
“The Bank recorded significant growth in profitability and our capital adequacy is strong, well over the regulatory minimum prescribed by the Bank of Ghana. On the basis of this the Board recommends a dividend of GHS 0.50 per share representing a 100 percent increase compared to 2020, subject to Bank of Ghana’s approval. This reflects the Board’s ongoing confidence in the Bank’s strengths and its future prospects. Our strong and resilient balance sheet, diversified business mix and improving profitability give us the financial strength to continue to make the right investments while also rewarding our shareholders with a steady and increasing flow of dividends,” he said.
Notwithstanding the challenges faced by businesses due to the devastating happenings in 2020 as a result of COVID-19, the financial performance of the Bank was strong.
The Bank achieved a profit before tax of ghs831.98 million representing an increase of 36.2 percent over the previous year. Profit after tax grew by 28.5 percent to hit 572.28 million after adjusting for a 5 percent levy applied on the profit before tax of the bank following the enactment of the Financial Sector Recovery Act, 2021, Act 1067.
Managing Director of GCB Bank PLC, Kofi Adomakoh indicated that the marginal growth in its profits recorded for the last year can be attributed to the challenging environment.
He added that other factors including strong cost control measures leading to an improvement in the Bank’s cost to income ratio, improvement in staff performance management system and the augmentation of the Bank’s leadership in key areas to implement key elements of the Bank’s strategy contributed to the sterling performance.