Accra (Greater Accra) 26 March '99

Ghana Commercial Bank (GCB) on Thursday declared a profit after tax of 32.3 million cedis and a dividend per share of 100 cedis for 1998. Both amounts are low, when compared to 1997's profit after tax of 65.7 million cedis and a dividend of 120 cedis. The dividend for the year under review represents 51 per cent of the profit after tax. This was made known by Mr John Sey, Chairman of the Board of Directors, to shareholders at the bank's fifth Annual General Meeting in Accra. He said the bank could not meet set targets due to some constraints it encountered during the year. Some of the constraints, he said, are the power crisis that confronted the nation. It also had to cede assets of its London office in the face of high competition and strive to meet high operational costs. Operation expenses increased from 58.3 million cedis in 1997 to 76.5 million cedis. Total income of the bank fell from 136.2 million cedis to 128.7 million cedis. Mr Sey said in spite of the gloomy atmosphere, the bank acquired huge assets that are expected to yield better income in the coming years. Mr Akwetey Akita, General Manager of Financial Control, said the bank's total assets now stand at one trillion cedis, the majority of which are in fixed assets. The figure, which represents a 23 per cent increase over the previous year, makes GCB the only bank to achieve such a target. He mentioned some of the assets as acquisition of 19.8 billion cedis worth of shares in Ghana International Bank and the purchase of computers, which would enable GCB to fully computerise 48 branches. These were achieved by increasing loans and advances from 204 million cedis in 1997 to 258.8 million cedis in 1998. Mr Akita said the bank is now building on its fresh deposits and investors would soon see an improvement in its operations. The bank's share of total deposits of the banking industry could be estimated at about 30 per cent' he said. Mr Akita said the GCB's main focus now is in computerising its operations within the year and expressed the hope that it would soon make major strides. Mr Sey and two former directors, including the Acting Managing Director, Mr W. P. Bray, were re-elected as directors. Five other people were elected to serve on the board after shareholdres agreed to increase the number from five to 12. More