GCB Bank PLC has reported another impressive quarterly performance, driven by significant growth in its balance sheet and strong contributions from non-funded income.
The bank’s total assets increased by 35% year-on-year to GH¢67.62 billion, supported by a 78% rise in loans and advances. Deposits also grew by 34% to GH¢50.78 billion, bringing the loan-to-deposit ratio to 51%.
Meanwhile, the Non-Performing Loan (NPL) ratio improved to 4.8%, although the Capital Adequacy Ratio declined to 14.6%. Profit after tax (PAT) rose by 39% year-on-year to GH¢629.11 million, exceeding analysts’ expectations and pushing Return on Equity to 25%.
Non-funded income recorded a 64% year-on-year increase, providing a significant boost to revenue and underscoring the growing contribution of non-interest income to the bank’s earnings. However, interest income declined amid a drop in the average lending rate to 15.94% in August 2026, from 25.15% in the same period last year.
The bank’s quarterly performance also came under pressure from rising operating costs and lower interest rates.
Operating expenses climbed by 13% quarter-on-quarter to GH¢938.02 million, exceeding the 1% increase in operating income, which reached GH¢1.97 billion.
The rise in operating costs was largely driven by a 19% increase in personnel expenses, pushing the cost-to-income ratio to 47.7% in the third quarter of 2026, compared with 43% in the second quarter.
Loan Growth Supports Expansion of GCB’s Balance Sheet
GCB Bank’s total assets grew by 35% year-on-year to GH¢67.62 billion, driven largely by a 78% annual increase in loans and advances, which also recorded a 17% quarter-on-quarter rise to GH¢25.97 billion.
Non-pledged trading assets also recorded significant growth, increasing by 83% year-on-year to GH¢3.54 billion. Investment securities, meanwhile, edged up by 2% annually but declined by 8% quarter-on-quarter to GH¢19.8 billion.
The quarterly figures point to a growing share of loans and advances in the bank’s earning assets, alongside a reduction in its investment securities portfolio.
Loan Expansion Outpaces Deposit Growth
GCB Bank’s deposits increased by 34% year-on-year but declined by 1.38% quarter-on-quarter to GH¢50.78 billion.
As a result, the bank’s loan-to-deposit ratio climbed to 51% in the third quarter of 2026, up from 43% in the second quarter of 2026 and 39% in the corresponding period of 2025. This reflects the faster pace of lending growth compared with deposit mobilisation.
Although the expansion in lending is expected to support interest income, maintaining this growth will depend on the bank’s ability to attract more deposits while keeping funding costs under control.
