Ghana Commercial Bank bounced back in 2004, reversing a sharp slowdown in profits in 2003, to report a 165bn Cedi ($18.1m) net profit last year, up 76% on the previous year. As a result, ROE was up to 27%.
The bank also managed to further narrow its NPL ratio, down to 17% from 35% in 2002 – the consequence of rigorous focus on internal credit processes. “Loan quality has occupied the attention of the bank in past year,” says managing director Lawrence Newton Adu-Mante. “A lot of effort has gone into ensuring no new loans go bad and that existing loans are managed within tolerable risks.”
Ghana Commercial Bank also beefed up its technological platform in 2004, doubling the number of branches on its computer network. With more connected branches than any competitor in Ghana, the bank enjoys wide geographic distribution while meeting the needs of customers across its retail network.
New innovation noted by the judges included the launch of the bank’s small and medium-scale enterprises division, which is designed to target this growing segment of the market. In addition, the Royal Banking Concept was piloted in a number of branches, providing for the unconventional needs of a specific market segment requiring royal or particularly special treatment.
