Investors confident in GCB stock

Investors are exhibiting strong and consistent confidence in Ghana Commercial Bank (GCB) as the premier bank’s stock enjoys high demand.

In a trend going back to the third quarter of 2012 when GCB’s excellent performance attracted a lot of reviews from both analysts and bankers, GCB’s share entered year 2013 with the same bullish momentum, trading at GH¢2.73 at the end of the first week of February.

Demand for GCB shares has continuously outstripped supply, as confident investors hold on tight to their prized stock. Bids from January to 5th February 2013 of 794,600 far outstripped offers of 66,600.

This confidence is due to the strong financial performance of the bank last year, according to analysts, who remain optimistic following the turnaround made by the bank after huge provisions were made to clean its loan book.

Confidence is also riding high because GCB, in its 60th year of operation, has introduced a number of e-banking products, making multiple channels of service available to its over two million customers.

GCB, with 158 branches, has 15 agencies, 220 ATMs with global links to MasterCard and VISA and POS terminals.

“If you speak to the management of the bank, you appreciate that they have embarked on a transformation exercise, where they are looking at reducing their turnaround time and the amount of loans they are disbursing is huge.

“Their loan portfolio is growing rapidly and they have put a lot of products and strategies in place and these are likely to see GCB grow quickly. This is being reflected in their results, and you realise that the investor is rewarding them for this,” an analyst said.

GCB is in the third year of the transformation, which has impacted on its systems, procedures and processes as well as the staff, and this has improved service delivery tremendously.

ATM usage among customers has doubled in one year while customers are also able to access loans in 24 hours.

Investors have given GCB the thumbs-up and the management of the bank has promised another good performance this Diamond Jubilee year during which the bank will be re-branded to communicate its revived impetus and make it ready for new growth and opportunities.