The GCB Bank has declared a dividend per share of 38 Ghana pesewas for the 2016 fiscal year, representing a 15 per cent growth over the 2015 rate of 33 Ghana pesewas.
The increment translates into the payment of a total dividend of GH¢100.7 million in the 2016 fiscal year as against the GH¢84.8 million paid in 2015.
In a statement read on his behalf at the 23rd Annual General Meeting (AGM) of the bank in Accra yesterday, the immediate past Board Chairman of the Bank, Mr Daniel Owiredu, said the bank had been consistent in its dividend pay-out culture with a clear intent of satisfying shareholders’ expectations.
“In 2010, the bank declared a cash dividend of 7 GHp a share while in 2011 it paid 0.14 per share amounting to GH¢18.6 million. In 2012, GCB declared a dividend of 0.18 GHp a share and 25 Ghana Pesewas in 2013, translating to GH¢66.25 million,” he said.
The 23rd AGM brought together board of directors, auditors, shareholders, customers and the public to brief them on how the bank fared in 2016.
It was also a platform for the shareholders to make inputs into the operations of the bank and express their grievances, expectations and opinions on the performance of the bank in the fiscal year under review.
Financial performance
Mr Owiredu said the bank generated a total operating income of GH¢1.1 billion as compared to GH¢863 million in 2015 representing a 24 per cent growth.
“We posted very strong results. Total assets grew by 30 per cent (GH¢1.4 billion) in 2016 to close at GH¢6.1 billion from GH¢4.7 billion in 2015,” he explained.
He said the bank’s performance in 2016 was a significant improvement over the previous years in all key financial indicators, although 2016 was a challenging fiscal year.
Corporate social responsibility
Mr Owiredu said the bank spent GH¢2.8 million in 2016 on various corporate social responsibility initiatives.
He said the break down included funding of the renovation of the Accident and Orthopaedic Centre of the Korle Bu Teaching Hospital, at a cost of GH¢50,000. The bank also supported 87 people to undergo reconstructive surgery conducted by the Graft Foundation.
Mr Owiredu said the bank also supported the Sheikh Usman Nuhu Sharubutu Trust Fund with GH¢20,000.
He said a modest rebound of global activities in 2017 with a forecast of 3.4 per cent, was expected by the bank, adding “this will be underpinned by the expected strengthening in the economies of emerging and developing economies and a subdued outlook for advanced economies.
He asked shareholders to be encouraged by the progress made by the bank in recent years and be hopeful that GCB would remain competitive and viable.
2017 priorities
Touching on the 2017 priorities of the bank, the Managing Director of the Bank, Mr Ernest Agbesi, said the bank would strengthen its participation in treasury, corporate business and trade; strengthen the risk framework to mitigate operational and exchange risks and become very active in the mobile banking and e-banking space, among other priorities.
Directors’ remuneration
A proposal made by the board members requesting an increment in their remuneration from GH¢2.5 million to GH¢4 million was voted against by the shareholders with many of them expressing the view that the incremental percentage was too high.
