Ghana: GCB plans to generate GH¢1bn through capital market fundraising

The Managing Director of GCB Bank PLC, Kofi Adomakoh has revealed the bank’s intention to raise GH¢1 billion from the capital market to strengthen its capital. This decision comes after the approval of its shareholders and is prompted by the impact of the Domestic Debt Exchange Programme (DDEP), which has reduced the bank’s capital. Speaking at the bank’s 70th-anniversary launch in Accra, he highlighted that this capital infusion will allow GCB to continue its support for local businesses, align with its mission, and ensure smooth operations.

Kofi Adomakoh stated that GCB Bank has been a steadfast pillar, providing stability and support throughout Ghana’s challenges in the past 70 years. While the Domestic Debt Exchange Programme (DDEP) has significantly affected the bank, there are promising signs of early recovery evident from the first-half results. However, the lingering aftershocks of the DDEP continue to be significant, prompting GCB to take measures to mitigate any adverse effects. Despite the challenges, he expressed hope and optimism about the sector’s recovery, considering the positive results achieved thus far.

Mr. Adomakoh expressed GCB Bank’s strong determination to expand its operations across Africa by revisiting its strategy of venturing beyond Ghana’s borders, similar to its past expansions into the United Kingdom and the Republic of Togo. He emphasized that pursuing a regional and pan-African bank role would enhance the bank’s digital agenda and ensure unparalleled services for communities and retail clients. GCB aims to compete at all levels of banking and succeed in its chosen markets, as it understands the needs of the people best and wants to play a significant role in Africa’s growth and development.

GCB Bank’s journey started in 1951 when Dr. Kwame Nkrumah established the Bank of Gold Coast, now known as GCB Bank, to provide unrivaled financial solutions for indigenous businesses in Ghana. Over the past 70 years, GCB has lived up to its purpose of economically and financially empowering Ghanaians and individual businesses, contributing to the growth of state institutions, industries, and the private sector. The bank has shown resilience and intervened during critical situations to sustain the economy and promote various sectors, such as agriculture, industry, and services.

During the anniversary launch, Finance Minister Ken Ofori-Atta commended GCB Bank for its commitment to offering first-class banking solutions to Ghanaians from all walks of life. He praised the bank’s strong service proposition, including a robust asset base, competitive pricing, extensive branch networks, and a deep understanding of Ghanaian and private sector needs. The minister urged people to support the bank and encouraged GCB to continue innovating and adapting to the digital age to maintain its leading position in the industry.

GCB Bank has a proven track record and has grown from being wholly government-owned to a network of over 186 branches across all 16 regions of Ghana, demonstrating its commitment to serving the nation.

GCB Bank’s Board Chair, Jude Arthur, highlighted the bank’s relentless commitment and determination to meet the banking needs of the Ghanaian people and lead the country’s development as the foremost and largest indigenous bank. He emphasized their proven track record of providing convenient, accessible, superior, and customized banking solutions, leading to strong profits and returns for their shareholders.

Over the last seventy years, GCB Bank has demonstrated robust growth and a sterling track record of creating value for its shareholders. The bank’s competitive position has continuously improved, solidifying its status as a leading financial institution with significant potential for further profitable and sustainable growth.

Throughout its history, GCB Bank has faced various challenges, but its resilience has been unwavering. The bank attributes its strength to the trust and loyalty of its customers and the support of its shareholders. The stability and resilience of GCB Bank have been pivotal in delivering exceptional value to its shareholders and all stakeholders.