Accra, Ghana – July 31, 2025: GCB Bank PLC sustained its strong momentum into the first half of 2025, posting double-digit growth across the major income lines. These results are detailed in the Bank’s first-half financial report covering the period January 1 to June 30, 2025, released on July 29, 2025.
Robust revenue growth from both funded and non-funded segments: The Bank posted a robust 45.2% year-on-year (y/y) increase in operating income, reaching GHS2.74 billion, underpinned by strong performance in both funded and non-funded income streams. Interest income surged by 46.5% y/y to GHS2.79 billion, primarily driven by growth in the loan book and investment portfolio. After accounting for interest expenses, net interest income stood at GHS2 billion, reflecting a solid 49% y/y growth. In addition, net fees and commission income rose by 35.6% to GHS332.7 million. Trading income and other operating income recorded significant growth of 87.5% and 165.1%, reaching GHS397 million and GHS17.4 million, respectively.
Revenue performance translates into healthy profit growth: The Bank recorded a 21.3% reduction in net impairment charges on financial assets (loans and investments), suggesting a potential improvement in the overall risk profile. Operating expenses rose by 20.9% to GHS1.4 billion; however, this increase was kept marginally below the period’s average inflation rate of 21.4%, aided partly by a decline in FX-denominated obligations. As a result, the Bank achieved an impressive 86.6% year-on-year growth in Profit Before Tax (PBT), reaching GHS1.31 billion, while after-tax profit nearly doubled to GHS843.2 million, representing a 99.1% increase year-on-year.
The cumulative effect of sharp Cedi correction moderates the nominal expansion in the balance sheet: Comparing the 2024 balance sheet position with that of the first-quarter 2025, the sharp appreciation of the cedi year-to-date appears to have tapered growth in the nominal values of certain assets and liabilities. As a result, the Bank’s balance sheet growth moderated, with total assets rising by 6.7% year-to-date to GHS45.5 billion, down from GHS47.1 billion reported in Q1 2025. The growth in total assets was primarily driven by a substantial 209% increase in borrowings, which rose to GHS4.6 billion. Customer deposits, however, remained relatively flat at GHS34.6 billion, reflecting the impact of the cedi’s appreciation on the foreign currency component of deposits. Meanwhile, Investment Securities grew by 29.4% year-to-date to GHS17.4 billion, while net loans and advances expanded modestly by 2.2%, reaching GHS10.5 billion as at end-June 2025.
The bank remains sound and profitable: The results affirm the Bank’s continued soundness and profitability, with key indicators remaining strong. GCB Bank PLC ended the period with a Capital Adequacy Ratio (CAR) without forbearance of 20%, well above the regulatory minimum of 13%. Asset quality also improved, as the Non-Performing Loans (NPL) ratio declined to 13.8% as of June 2025. Profitability remained robust, with Return on Equity (ROE) and Return on Assets (ROA) coming in at 36.7% and 3.6%, respectively.
Slowing interest rates make cost prioritization and revenue diversification imperative: GCB Bank, like all other banks, faces a major risk to earnings growth in the second half of 2025, given the sharp decline in interest rates due to improving macroeconomic conditions. While improving conditions in the operating environment will support asset quality and encourage loan book expansion, banks are facing risks to their 2025 budgets. We anticipate that GCB Bank will prioritize the growth of high-quality loan assets, strengthen its digital platforms to improve operational efficiency and expand fee-based income, while maintaining disciplined cost management to support sustained growth and long-term profitability.
