Economy-Ghana - The Ghana Commercial Bank (GCB) is upbeat about Ghana's economic outlook for this year despite the expected slow recovery growth for the developed world. According to Mr. Pryce Kojo Thompson, GCB's Board Chairman although "a slow recovery is expected in developed economies we in Ghana look forward to much higher prospects for economic growth of 12.3 percent to GDP." He assured that the Board was determined to reposition the Bank in 2011 and to ensure that customers get value for their money. "May I on behalf of the board assure you distinguished shareholders that this Board is determined to see your Bank reposition itself in 2011.While we are proud to have a large number of Ghanaians transacting banking services in our Nation-wide branch network, we shall ensure that each customer gets value for money such that the products and service we offer generate value for the Bank." He was addressing the Bank's Annual General Meeting (AGM) in Accra on Monday.

Mr. Thompson announced that the Bank chalked significant improvement in 2010 compared to the previous year. "In 2010, the groups Net Income of GHc 259.9 million was 57 percent above that of 2009. It would be recalled that in 2009, the Bank's Net Income of GHS 165.8million was 7 percent below year 2008.Significantly, the 2010 net Income of GHc 259.9 million after impairment charge on loans and advances of GHc 70.9million which was almost twice the 2009 loans impairment charge of GHc 36.7 million."

He explained that operational expenditure of GHc 168.6 million absorbed 64 percent of Net Income whereas in 2009, the comparative Operation expenses of GHc 140.7 million absorbed 85 percent of net income thus resulting in an improvement in net margin of 21 percent.

The Bank's distributable profit after tax in 2010, he disclosed, was GHc 56.1million which was 198 percent higher than after tax profit of GHc 18.8 million in the 2009.

With the significant improvement in the Bank's financial status, the Board recommended a dividend of 7.00 Ghana Pesewas per share, which amounts to GHc 18.6million as against the previous year's dividend of 3.56 Ghana pesewas per share amounting to GHc 9.4million, an increase of 97percent.

The Managing Director of the Bank, Mr. Simon Dornoo, said the macroeconomic condition remained stable throughout 2010 with banks coming under intense pressure from Bank of Ghana, customers and the public to reduce lending rates in line with the improved macroeconomics environment. This, he said, led to increased competition among banks for enlarged market share to offset the inevitable decline in margins.

He indicated that 2011 is promising with the emerging oil and gas industry, spurring growth in other sectors of the economy. "We will continue with organic growth. We expect higher volume growth to offset the anticipated reduction in exposure to the public sector. We will continue with our programme to improve cost efficiency," he promised.

While acknowledging that there are more challenges ahead, Mr. Dornoo was optimistic that customers would support the Board and Management to overcome them.

Mohammed Suleman

Public Agenda/01/02/2011