Market Watch
Today’s market session saw activity across 08 tickers.
The market closed today’s trading on a quiet note as total trade volume and value was 48,604 and GHS 58,102.69 (~USD 10,133.84) respectively.
There were neither gainers nor losers today.
The highest volume of shares traded today was 14,195 Scancom Plc. shares (MTNGH) whilst the highest value of share traded today was GHS 13,642.00 worth of Benso Oil Palm Plantation shares (BOPP) (~USD 2,379.34).
Indices
The GSE-CI (remained flat) and the GSE-FSI (remained flat) closing at 2,214.58 and 1,849.04 respectively.
YTD of the GSE-CI and GSE-FSI are recorded at 14.06% and 3.72% respectively
**Market News**
GCB Bank Limited Posts GHS 445.38 Million PAT for FY2020
Income Statement
| (GHS ‘000 )
|
2020
|
2019
|
Growth
|
| Total Revenue
|
1,938,908
|
1,555,646
|
25%
|
| Net interest income
|
1,508,698
|
1,168,452
|
29%
|
| Net fees and commission
|
277,980
|
241,505
|
15%
|
| Net trading income
|
166,628
|
141,745
|
18%
|
| Operating Income
|
1,967,680
|
1,572,869
|
25%
|
| Net impairment Loss
|
219,647
|
75,521
|
191%
|
| Opex (ex. Impairment)
|
1,129,641
|
923,271
|
22%
|
| PBT
|
610,826
|
573,668
|
6%
|
| PAT
|
445,389
|
428,457
|
4%
|
Balance Sheet
| (GHS ‘000 )
|
2020
|
2019
|
Growth
|
| Cash balance
|
1,567,241
|
1,572,538
|
-0.34%
|
| Total assets
|
15,453,897
|
12,524,084
|
23%
|
| Deposits
|
11,345,240
|
9,320,878
|
22%
|
| Loans and Advances
|
3,612,588
|
3,587,653
|
1%
|
| Total equity
|
2,185,998
|
1,780,362
|
23%
|
Profitability
| (GHS ‘000 )
|
2020
|
2019
|
Growth
|
| Net interest Margin
|
78%
|
75%
|
▲
|
| Profit Before tax margin
|
32%
|
37%
|
▼
|
| Net Profit margin
|
23%
|
28%
|
▼
|
| Net profit growth
|
|
|
|
Efficiency Ratios
| (GHS ‘000 )
|
2020
|
2019
|
Growth
|
| Return on Assets
|
2.88%
|
3.42%
|
▼
|
| Return on Equity
|
20.4%
|
24.1%
|
▼
|
| Asset Turnover
|
12.5%
|
12.4%
|
▲
|
| Cost-to-income
|
58.3%
|
59.3%
|
▲
|
Asset Quality
| (GHS ‘000 )
|
2020
|
2019
|
Growth
|
| NPL ratio
|
8.71%
|
6.01%
|
▼
|
| CAR
|
20.70%
|
17.50%
|
▲
|
| Liquid ratio
|
64.00%
|
60.00%
|
▲
|
Income Statement
After a rather delayed release in financials for 2020 among banks, GCB bank set the pace, posting rather impressive numbers for full year 2020. This comes against the backdrop of COVID-19 pandemic that slowed economic activity and growth globally.
GCB Bank Limited (GCB) has reported a topline growth of 25% y-o-y to GHS 1,938 million (vs. 7%y/y decline in FY2019).
Generally, the bank recorded double figure growth rates for the various income line items on income statement for 2020.
Net income recorded the highest growth within the category posting 29% y-o-y growth to GHS 1,508 million whilst net fees and commissions saw the least growth of 15% y-o-y to GHS 277.9 million.
In the cost category however, Operating expense also grew by 22% to GHS 1,129 million. Growth in cost line items may be due to COVID related expenses as well as GCB’s historically high operating expense.
Net impairments sky-rocketed by as much as 191% to GHS 219.6 million.
Despite the huge write offs done in 2020, NPL ratio seems to be clawing up gradually from 6.01% in 2019 to 8.71% in 2020. However, the figure remains one of the lowest, compared to industry averages for distress loan portfolios held by banks in Ghana.
The preceding developments consequently had an adverse impact on bottom line as Profit before tax (PBT) and Profit after tax (PAT) witnessed stunted growths of 6% and 4% respectively. The Bank therefore posted PBT of GHS 610.8 million and PAT of GHS 445.3 million for FY 2020.
GCB’s profitability could have been higher but for high Opex.
It is therefore imperative that the bank takes a critical look at rolling out measures to prevent gains from being further eroded in the future.
Balance Sheet
Cash and near cash positions declined y-o-y by 0.34% to GHS 1,567 million whilst customer deposits increased by 22% to GHS 11,345 million. GCB’s total assets stood at GHS 15,453 million as of FY2020.
Loans advanced grew only by 1% to GHS 3,612 million. The slowed growth in loans advanced could be attributed to the uncertainty that surrounded economic activity in 2020 due to the pandemic.
Currency Update
The local unit closed at 5.7244/5.7302 against the US Dollar on the interbank market.
Average Open: 5.7273
Average Close: 5.7273
Day % Ch GHS/USD: 0.00%
1-Month %Ch GHS/USD: +0.46%
3-Month %Ch GHS/USD: +0.09%
YTD Cedi Depreciation Against USD: +0.57%
52 Week Range: 5.3963– 5.7618