GCB Bank @70: Testament of banking leadership – Bank of Ghana

The Bank of Ghana (BoG) has said it will continue to support GCB Bank PLC to enable it to stay the course of providing banking services to Ghanaian businesses and households.

The banking sector regulator said GCB was key in supporting businesses, households, parastatal companies, and the government for the socio-economic development of the country.

The First Deputy Governor of BoG, Dr Maxwell Opoku-Afari, said this on behalf of the central bank at the launch of the 70th anniversary of GCB Bank in Accra yesterday.

He commended GCB Bank for its performance over the years and said the bank posted a return on equity of 21.7 per cent last year, in spite of the challenging microeconomic environment.

GCB Bank’s loans and advances recorded a balance of GH¢5.7 billion, representing 9.4 per cent market share of the loans and advances  last year, Dr Opoku-Afari said.

“Indeed, as of the end of May 2023, the bank’s share of loan and advances stood at 10.4 per cent, making GBC Bank the second largest issuer of loan and advances to the public and private sectors of the Ghanaian economy,” the first deputy governor added.

On loans to households, GCB Bank came first with a share of 18.6 per cent of household loans granted by the banking industry within the same period, he said.

He said GCB Bank also supported the government with a share of 12.1 per cent of the banking industry’s net investment in government securities last year.

In the drive towards innovation, GCB Bank launched the first bank-led mobile money services, G-Money, which currently served more than 2.7 million customers with services such as money transfer, bills payment, among others, Dr Opoku-Afari said.

Launch

The anniversary launch of the bank, which started operations in May 1953, is on the theme: “70 Years of providing unrivaled banking solutions towards the socio-economic development of Ghana.”

The launch attracted key personalities in the banking sector, former managing directors and executive members of the bank, chief executive officers from public and private sector companies, representatives from the judiciary, business owners, politicians and traditional rulers, among others.

The celebration, which will run through the rest of the year, will feature activities such as health walks, CSR activities, thought leadership events, and an awards gala night.

Yesterday’s event was also used to unveil the bank’s anniversary logo.

Promising outlook

Dr Opoku-Afari, on behalf of the BoG, tasked Ghanaian banks to be innovative and creative in their operations to sustain the banking sector.

He said the economy was going through some adjustments which called for such innovations and creativity to enable the industry to surmount challenges.

Dr Opoku-Afari said the Domestic Debt Exchange Programme (DDEP) undoubtedly affected the banking sector last year, but the banks’ performance in the first half of this year looked promising.

He said to cushion the banks, the BoG had granted some temporary regulatory reliefs to them to minimise the effect of the debt restructuring and with the expected operationalisation of the Ghana Financial Stabilisation Fund, provide support for the banking sector.

The first deputy governor said banks whose capital levels had dropped below 10 per cent minimum had been advised to provide capitalisation plans for review by BoG.

Despite the challenges, he said GCB Bank had continued to serve the banking needs of large corporations, parastatal companies, small and medium enterprises (SMEs) as well as individuals to keep their businesses running.

The deputy governor congratulated shareholders of GCB Bank on agreeing for the bank to raise additional GH¢1 billion to meet the regulatory capital requirement to enhance its bill making capacity and take advantage of opportunities available to it.

“I believe the GCB Bank will surmount all the emerging economic and financial challenges given the collaboration between the regulator, on one hand, and the directors and shareholders, on the other hand,” he stated.

GCB must be celebrated

The Minister of Finance, Ken Ofori-Atta, said the bank’s transformative impact on everyday lives of Ghanaians could not be forgotten and, therefore, it must continue to be a facilitator in building a prosperous future.

The Minister commended GCB Bank PLC’s commitment to social responsibility and called for the celebration of its various initiatives geared towards the national development agenda.

Ofori-Atta said the government would continue to support the financial sector to thrive and continue to implement policies for financial stability and inclusiveness.

He said although the year had been a challenging one, “we as government and GCB will not be deterred by our circumstances. Instead, we will both use our difficult moments to put in place the foundations needed to build banks better”.

Describing it as the safest bank, Mr Ofori-Atta said “With GCB as a strong partner, I am confidence that together we will overcome any challenge and seize the opportunities to build a prosperous and resilient Ghana for generations to come”.

Empowering employees

The Board Chairman of the bank, Jude Kofi Arthur, said GCB Bank had significantly invested in cutting-edge information technology infrastructure, enabling it to enhance operational efficiency and deliver innovative solutions to customers.

By leveraging the power of technology, we remain at the forefront of a digital revolution driving convenience, accessibility, and personalised banking experiences”, he stated.

Arthur said the GCB Bank was also committed to nurturing and developing a workforce equipped with the skills and knowledge to navigate the challenges of a rapidly changing world.

Our goal is to empower our management and staff to unleash their potential, drive innovation, and foster a culture of excellence in all operations”, he said.

Growing Ghanaian businesses

The Managing Director of GCB Bank PLC, Kofi Adomakoh, for his part, said the bank was poised to grow Ghanaian businesses to become African champions, as part of its vision of supporting businesses to explore beyond the shores of Ghana.

Over the years, he said, GCB Bank had been strategic and deliberate in supporting businesses to attain commanding heights as a means of developing the economy.

Adomakoh said the likes of Kasapreko, Precious Minerals Marketing Company (PMMC), Blue Skies, Niche Cocoa, Star Oil, Safari Valley Resort and many more companies and SMEs were on that path to greatness due to the intentional support in finance and governance GCB was providing them.

We must not take this for granted knowing that only Ghanaians will build Ghana,” he stated.

Adomakoh said GCB Bank was very proud of its 70th anniversary milestone because it remained the only public, private partnership (PPP) type of firm that was 70 years old.

This is evidence that it can be done. GCB, from an ownership perspective, is a PPP between the Government of Ghana and the private sector and has remained extremely valuable to its shareholders even in times of economic downturn,” he stated.

From one branch in 1953, GCB Bank currently has over 150 branches and 11 agencies across the country.