GCB Board Will Be Independent

credit: Akwasi Fredua

The Board Chairman of Ghana Commercial Bank (GCB) Mr. Pryce Kojo Thompson, has insisted that the Board will maintain its independence and will resist any government interference and policies which will be inimical to the interest of the Bank’s shareholders despite that fact hat 70 percent of its members are government appointees.

He said notwithstanding the fact the fact that the government and the Social Security and National Insurance Trust together holds 51 percent of total shares making them majority share holders; there is still the need for the Board to be allowed to make effective decisions that will also favour the other 49 percent of share holders.

He made these comments at the Bank’s Annual General Meeting (AGM) held in Accra. He explained that GCB’s weak performance in the Year 2009 was due to the relatively higher provision made against loans and advances to companies in the downstream oil sector, especially as the main financier to Tema Oil Refinery (TOR) Limited. Similarly, the financing of the oil sector also affected the Profit after Tax of GHC8.8 million, which was 50 percent below Year 2008 profit of GHC 37.6 million.

He said the GCB recorded a Net Operating Income of GHc165.5 million, which was 7 percent below the 2008 figure; and a total Operating Expenses of GHc 140.7 million which was 18 percent higher than in Year 2008.

Despite the reduced profits, Mr. Thompson said the Board still deems it fit to propose a dividend of 3.56 Ghana pesewas per share, amounting to GHc9.4 million compared to GHc15.9 million in the previous year.

Shareholders present at the AGM expressed frustration at the Bank’s inability to provide loans to 80 percent of its customers. They ppealed to the Board install and maintain Automated Teller Machines (ATM) in the Bank’s branches to minimize the long queues in banking halls.

Shareholders were also unhappy about the fact the Bank allocates only 1 percent of its revenue to the development of the agricultural sector and urged the Bank to show more commitment to the cause of the sector.