GCB Bank PLC posted a strong financial performance for the first half of 2026, demonstrating resilience despite a challenging operating environment characterised by declining interest rates and tighter lending margins.
The bank recorded a profit before tax of GH¢1.91 billion for the six months ended June 30, 2026, representing a 45.8 per cent increase over the corresponding period last year.
Profit after tax also rose by 46.4 per cent to GH¢1.23 billion, while operating income grew by 36.1 per cent to GH¢3.73 billion.
The performance comes at a time when Ghana’s banking industry is adjusting to lower Treasury Bill yields, a significant decline in the Ghana Reference Rate (GRR) and reduced lending rates, all of which have placed pressure on traditional interest income.
Although interest income increased modestly by 4.1 per cent to GH¢2.91 billion, the bank significantly reduced its interest expense by 28.9 per cent to GH¢564.7 million.
This enabled net interest income to rise by 17.3 per cent to GH¢2.34 billion, helping to offset the impact of narrowing interest margins.
A key highlight of the bank’s results was the strong growth in non-interest income, reflecting greater earnings diversification.
Net fee and commission income almost doubled, rising by 98 per cent to GH¢658.7 million, while trading income increased by 76.8 per cent to GH¢701.9 million. Other operating income also recorded healthy growth during the period.
As a result, total non-funded income increased by about 86 per cent to GH¢1.39 billion and accounted for 37.3 per cent of operating income, compared with 27.2 per cent during the same period in 2025.
The bank said the improvement reflected increased customer transactions, fees, commissions and trading activities, reducing its reliance on interest income as market rates softened.
Operating efficiency also improved during the period. Personnel, depreciation and other operating expenses increased by 20.5 per cent, well below the growth in operating income, leading to an improvement in the bank’s cost-to-income ratio from 49.4 per cent to 43.7 per cent.
Although impairment charges rose to GH¢197.5 million, they remained manageable relative to the bank’s earnings and expanding asset base.
The bank also recorded strong balance sheet growth, supported by higher customer deposits.
Customer deposits increased by 24.5 per cent from December 2025 to GH¢51.49 billion, providing funding for total assets to expand by 28.7 per cent to GH¢67.43 billion.
Net loans and advances rose by 35.4 per cent to GH¢22.19 billion, while investment securities grew by 31.1 per cent to GH¢21.44 billion.
Asset quality also improved significantly, with the non-performing loan ratio declining to 4.7 per cent from 13.8 per cent a year earlier, well below the banking industry’s average of 16.1 per cent.
The bank maintained a strong capital position despite rapid business growth. Its capital adequacy ratio stood at 15.9 per cent, above the regulatory minimum of 13 per cent, while shareholders’ equity increased by 16.8 per cent to GH¢7.02 billion.
Liquidity also remained robust, with the liquidity ratio standing at 69.8 per cent, providing a strong buffer to support future growth.
BY TIMES REPORTER
Follow our WhatsApp Channel now! https://whatsapp.com/channel/0029VbAjG7g3gvWajUAEX12Q
