GCB expected to make upswing in income this year
6/6/2012 7:30:24 AM -
Accra, June 6, GNA - The Managing Director of the Ghana Commercial Bank Limited (GCB), Mr Simon Dornoo, has predicted a significant upswing in the Bank's interest income for 2012.
He explained that the dip in the Bank's profits for 2011 was anticipated and attributed this to a combination of lower interest income and higher cost.
Mr Dornoo said that the Bank was on track with its Q1 2012 results to achieving its objective of becoming the best performing bank in Ghana and added that 'this is happening quicker than many would have expected.'
He made the prediction when answering questions from journalists relating to the 2011 and first quarter 2012 financial release by the Bank recently.
The Bank's results reflect the impact of a deep dive exercise undertaken to clean up its books and improve compliance with International Financial Reporting Standards.
GCB recorded 65 per cent dip in profit last year from about GH¢50million in 2010 to GH¢17million in 2011.
Mr Dornoo explained that the full impact of the dip in profit was however, offset by a significant decline in loan impairments and expressed optimism at GCB's future, which he said was 'bright and promising,'
He said despite the dip in income and profit, GCB's underlying performance remained strong.
To cement this, available results of the first three months of the Bank's operations this year showed that profits shot up by 18 per cent to GH¢23million compared to last year.
Mr Dornoo said the Bank was committed to the tenets of good corporate governance, which would make a bigger impact on the Bank's bottom line this year.
He said this year, GCB is looking at a combination of service outlets, which include branches and electronic service points.
While it will be optimising branch space, electronic banking services would also increase.
At the moment the Bank's ATMs have been increased from 100 to 200, while branch environment and ambience are high on Management's agenda.
'It is our commitment to do right by our shareholders, customers and employees. We want to de-personalise this institution and have it structured by governance,' Mr Dornoo said.