GCB Bank PLC reported a 42% increase in net profit for the first quarter of 2025, buoyed by growth in its loan portfolio and improved asset quality.
The Ghanaian lender’s unaudited financial statements show net profit climbed to GH¢341.1 million, up from GH¢240.1 million in the same period last year, as total assets expanded by 56% to GH¢47.1 billion.
The bank’s loan book grew 40% year-on-year to GH¢9.5 billion, reflecting increased lending activity across both corporate and retail segments. Customer deposits rose 53% to GH¢37.6 billion, underscoring strengthened liquidity with cash reserves more than doubling to GH¢15.3 billion. Asset quality showed marked improvement, with the non-performing loan ratio declining to 14.9% from 22.0% a year earlier.
Interest income surged 38% to GH¢1.3 billion, driven by higher yields on government securities and expanded credit operations. Fee-based revenue increased 25% to GH¢220.5 million, supported by growth in transaction services and foreign exchange operations. Despite a 28% rise in operating expenses to GH¢638.8 million, the bank’s cost-to-income ratio improved to 51.3%, down from 53.8% in 2024.
Regulatory capital ratios remained above required thresholds, with the total capital adequacy ratio at 18.0% and common equity tier 1 at 14.9%. The bank maintained a conservative investment strategy, holding GH¢15.6 billion in government bonds, which constitute 60% of its securities portfolio.
GCB’s performance aligns with broader sector trends showing Ghanaian banks gradually recovering from recent economic challenges. The reduction in non-performing loans suggests improved credit risk management, while deposit growth indicates renewed customer confidence. However, the slight decline in capital ratios compared to 2024 highlights the balancing act between growth and capital preservation in an expanding balance sheet.
The bank’s liquidity ratio improved to 78.2%, providing buffer capacity amid evolving monetary conditions. With Ghana’s economic recovery gaining traction, GCB’s results position it as a key player in financing national development priorities while navigating inflationary pressures and currency volatility. These unaudited figures will undergo formal review ahead of full-year reporting, with market observers noting the bank’s progress in leveraging digital transformation to enhance operational efficiency.
All figures expressed in thousands of Ghana cedis. Performance metrics derived from unaudited interim financial statements subject to external audit.
