FY2022 Performance: GCB suffers a deep cut
- GCB reported a loss after tax of GHS 593.4mn in FY2022, driven by a sharp rise in operating expenses and impairment loss on investment securities as a consequence of the Domestic Debt Exchange Programme (DDEP)
- Net interest income increased by 11.2% y/y to GHS 2.1bn with non-interest revenue growing by 68.6% y/y to GHS 898.2mn. Notably, the bank registered a 3-fold increase in net trading income
- Net impairment loss on investment securities resulting from the DDEP amounted to GHS 1.8bn.
- Although impairment loss on loans and advances fell by 15.6% y/y to GHS 274.1mn, GCB’s NPL ratio edged higher to 20.59% (+ 4.61pp y/y) while CAR slipped to 17.9% from 20.9% a year ago.
- Operating expenses increased by 29.1% y/y to GHS 1.6bn. Consequently, GCB’s cost-to-income ratio inched up by 2.24 pp y/y to 54.3%.
1Q2023 Performance: Strong revenue outturn propel bottom-line performance
- Profit after tax increased by 20.7% y/y to GHS 186.3mn, on the back of robust revenue outturn, notwithstanding the increase in impairment charges and operating costs.
- Net interest income increased by 34.3% y/y to GHS 655.6mn, propelled by a 34.3% increase in interest income.
- Non-interest income increased by 40.4% y/y to GHS 248.1mn, mainly propelled by a 79.3% y/y rise in trading income.
- Operating expenses increased by 37.5% y/y to GHS 494.5mn, reflecting the elevated price pressures since 2022. However, cost-to-income ratio stood still at 54.7% as operating income grew closely with operating expenses.
- Impairment charges on financial assets increased by 63.3% y/y to GHS 111.3mn. The Bank’s NPL ratio saw little improvement, declining to 20.20% in 1Q2023 from 20.59% in December 2022. GCB’s CAR stood at 18.5% (-2.40% y/y) in 1Q2023