GCB Bank extends strong performance through Q3  

…sustaining robust revenue and profit growth

GCB Bank PLC (GCB) has delivered another impressive result for Q3, 2025, churning out a 100.1% year-on-year growth in Profit Before Tax (PBT) to GHS2.01 billion.

The double-digit growth in the unaudited third quarter numbers (January – September 2025) was achieved across key income lines, supported by strong performance in both core and ancillary revenue streams.

The outturn extends the record performance post DDEP, which underscores the Bank’s resilience and strategic focus in a dynamic operating environment. The results also represent a smooth take-off for the Bank’s new medium-term strategy (2025 – 2028) built on the theme: Consolidating our gains; forging ahead for sustainable growth.

Diversified income growth supports solid revenue performance

For the period ended 30th September 2025, GCB’s total operating income surged 48.4% year-on-year, reaching GHS4.30 billion, attributed to the robust growth across both interest income and non-interest income categories.

Interest income advanced by 47.0% to GHS4.33billion, supported by continued expansion in the loan book and investment securities portfolio. Net interest income rose by 44.7% year-on-year to GHS3.13 billion.

In parallel, Net fee and commission income increased by 36.9% to GHS570.9 million, while trading income grew by 89.1% year-on-year to GHS586.5 million. These gains underscore the Bank’s improving revenue diversification, a core pillar under the new medium-term strategy.

Improved Asset Quality and Prudent cost control drive profit growth

Net impairment charges on financial assets declined by 17.0% year-on-year, reflecting improved credit risk management and stronger loan portfolio quality. The Bank also maintained cost discipline and expenditure efficiency – containing the growth in operating expenses well below the 48.4% growth in revenue at 25.6% (GHS2.12 billion) for the period.

This cost efficiency, together with the impact of Cedi appreciation on the Bank’s foreign exchange-denominated expenses and the improving asset quality, underpins the strong profit growth for the period. These dynamics culminated in a strong 100.1% increase in Profit Before Tax to GHS2.01 billion. Net profit after tax doubled to GHS1.3 billion, representing a year-on-year growth of 110.9%, a testament to the Bank’s operational efficiency and profitability momentum.

Currency dynamics tapered off balance sheet growth despite strong underlying trends

The Bank’s balance sheet recorded modest 16.9% growth year-to-date, reaching GHS49.8 billion as of September 30, 2025. This growth, however, was moderated by the sharp appreciation of the Cedi in 2025, reducing the Cedi-equivalent value of foreign currency-denominated assets and liabilities.

For the period, borrowings also rose sharply by 87.2% to GHS 5.1 billion, contributing to overall asset growth. Investment securities increased by 43.2% year-to-date to GHS 19.23 billion, while net loans and advances grew by 34.6% to GHS 13.8 billion, reflecting a measured expansion of credit in a stabilizing macroeconomic environment.

The currency translation effects on foreign currency deposits also moderated the overall growth in customer deposits to 9.1% (GHS 37.76 billion) for the period.

Capital, Asset Quality, and profitability remain strong

The Bank closed the period with a Capital Adequacy Ratio (CAR) of 16.2%, well above the regulatory threshold of 13%, reinforcing its financial strength and capacity to sustain the growth. Asset quality improved, with the Non-Performing Loans (NPL) ratio declining to 10.8%. Return on Equity (ROE) and Return on Assets (ROA) stood at 37.03% and 3.75%, respectively, highlighting the Bank’s strong earnings efficiency and balance sheet productivity.

Outlook: Adapting to a lower rate environment

As interest rates trend downward amid the improving macroeconomic conditions, banks are expected to suffer compression in net interest margins, particularly in the final quarter of 2025, which could dampen profit.

In response, and consistent with the strategy, GCB intends to continue to deepen digitization and operational efficiency, expand high-quality credit origination, grow fee-based income streams, and sustain prudent cost controls. These strategic priorities are expected to position GCB Bank PLC well to navigate evolving market conditions, sustain profitability, and deliver long-term shareholder value.

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