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24.05.2019 Business & Finance

GCB Records Positive Growth After UT Capital Bank Takeover

By Beyonce Diamond Kpogli
GCB Records Positive Growth After UT Capital Bank Takeover

Ghana Commercial Bank has recorded positive growth 2018/2019 financial year despite setbacks from the takeover of UT and Capital Bank.

The development compelled the bank to take GH¢400 million cedis support from the Central Bank.

After the takeover of UT and Capital banks, GCB Bank began integration process which led to the closure of more than 20 branches of both Banks.

According to the deputy managing director of GCB Bank in charge of finance, Mr. Socrates Afram, this affected the performance of the bank leading to losing of ¢1 billion out of a total of about GH¢2.3 billion deposit took over from the banks.

Speaking at a press conference held at Ghana stock exchange in Accra dubbed "Facts behind the figures ", Mr. Afram said, the Bank has recorded some pickups in revenue.

"prior to the assumption, we have a substantial amount of inter-banking investment, so as a Bank because of these savings withdrawals, we have to even liquidate all investment in that space to a point that it got to a stage, we have to take GH¢400 million from the central bank," he said.

Meanwhile, the Managing Director of GCB Bank Ltd, Mr. Anselm Ray Sowah, has announced new initiatives which aimed at repositioning the Bank as the gold standard for banking in the country.

The initiatives include the rolling out the mobile wallet and mobile app, launching of a new internet Banking portal with a business solution and agency banking.

These initiatives are to kick off in July this year.

Mr. Sowah added that the Bank is diversifying its stream of income by venturing into other viable areas of the Ghanaian economy.

He listed the setting up of GCB Securities, prosecuting of fixed income and currency trading.

Aside these, he also noticed that the Bank was exploring the possibility of entering the ECOWAS Sub-Region and the Insurance industry.

Mr. Sowah explained that to improve on operational efficiency and offer convenience to customers and other stakeholders of the Bank, the Central Processing project has been completed while work on front office automation would be accomplished in June this year.

Responding to a question on the laying off of some staff acquired from the ex-UT/Capital Banks, the MD explained that the staff affected either did not meet the basic requirement for employment of GCB or had fictitious certificates.

He said the purpose for laying-off 120 such staff was not based on cost-cutting as was being speculated.