Shareholders of GCB Bank Limited will receive a dividend of 20 pesewas per share in respect of the 2019 financial year.
This was approved by the bank's. Annual General Meeting held Thursday.
The Bank of Ghana (BoG), as part of measures to address the potential negative impact of COVID-19 on the solvency and liquidity of banks, placed a temporary ban on the payment of dividends, with an option for banks wishing to pay dividends to apply to the Central Bank for prior approval.
“I am happy to report that following our commendable financial performance and based on the measures put in place to ensure sustainable growth, we made a request to BoG, supported by the necessary financial documents, making the case for the payment of dividend,"said Mr Jude Kofi Arthur, Board Chairman, GCB bank limited.
He addes that, "As we speak now, the Central Bank has approved payment of dividend to the shareholders of the Bank. Accordingly, we recommend the payment of dividend of 20 pesewas per share in respect of the 2019 financial year.”
He said although the dividend might not be big enough, the bank, going forward would ensure that its shareholders received valuable returns on their investment.
Speaking on the bank’s financial performance, Mr Anselm Ransford Adzete Sowah, Managing Director, GCB bank, said, it achieved a profit before tax of GH¢573.67 million compared to GH¢450.17 million in 2018 representing a rise of 27.4 per cent.
The bank had total assets of 12,416,741 in the 2019 financial year as compared to 10,635,051 in 2018.
The assets included cash and cash equivalents, non-pledged trading assets, derivative financial instruments, investments, loans and advances to customers, advances to banks, investment securities, investments in associates and subsidiaries, deferred tax assets, current tax assets, intangible assets, and property, equipment and right-to-use assets.
Mr Sowah said the bank’s total shareholder’s equity comprising stated capital, retained earnings, statutory reserve, regulatory credit risk reserve, fair value reserve and other reserves for the year under review was 1,652,054 as compared to that of 2018, which was 1,325,417.
Its total liabilities and shareholders’ equity on the other hand was 12,416,741 against 10,635,051 of 2018.
The Managing Director said the progress and record financial performance of the Bank was due to the prudent strategic direction by its Board of Directors, coupled with pragmatic managerial decision-making skills.