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26.03.2004 Business & Finance

GCB to adopt cost efficient measures

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Accra, March 26, GNA - Ghana Commercial Bank is to adopt cost efficient measures as part of its corporate plan to enhance shareholder value and general performance.

Board Chairman, Mr Kwabena Gyima Osei-Bonsu told shareholders at the 10th Annual General Meeting on Friday that the Bank would rationalise existing services through improved technology.

"For the ensuing year, your Bank will continue to pursue the objectives of its corporate plan, which is driven by the determination to focus on shareholder value and customer satisfaction," he said. Mr Osei-Bonsu said under the strategic theme to develop products based on customer needs, special steps were taken in respect of some key customers.

Sourcing external funds was adopted as a strategy firstly to continue providing the needed financing to these customers and secondly to improve liquidity.

Mr Osei-Bonsu said the operational uncertainties surrounding the Government's desire to divest itself of the remaining shares in the Bank coupled with unanticipated setbacks in management structure affected business operations and the performance of the Bank.

Gross Profit fell by 23.5 per cent from 281.9 billion in 2002 to 215.6 billion last year.

There was, however, an increase in shareholders' fund by 58 billion cedis to 495.2 billion cedis.

Total assets also grew by 9.8 per cent from 4.6 trillion cedis to five trillion cedis as a result of increases in Loans and Advances as well as government securities.

Total deposits increased to three trillion cedis, representing a rise of 32.2 per cent from 2.4 trillion cedis in 2002.

Mrs Matilda Obeng-Ansong, Managing Director of the Bank, said efforts would be made to mobilise more deposits this year for investment.

The Bank declared a dividend of 250 cedis per share amounting to 41.25 billion cedis, representing a 50 per cent fall from the 500 cedis paid out in 2002.