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GCB

GCB BankGHSE:GCB Stock Report

Market Cap

GH₵1.4b

7D

0%

1Y

39.5%

Updated

21 Oct, 2021

Data

Company Financials +
GCB fundamental analysis
Snowflake Score
Valuation5/6
Future Growth3/6
Past Performance3/6
Financial Health5/6
Dividends3/6

GCB Overview

GCB Bank Limited engages in consumer and corporate banking, and treasury activities in Ghana.

GCB Bank Competitors

Standard Chartered Bank Ghana

GHSE:SCB

GH₵2.7b

Ecobank Ghana

GHSE:EGH

GH₵2.5b

Societe Generale Ghana

GHSE:SOGEGH

GH₵851.0m

Access Bank (Ghana)

GHSE:ACCESS

GH₵607.1m

Price History & Performance

Summary of all time highs, changes and price drops for GCB Bank
Historical stock prices
Current Share PriceGH₵5.37
52 Week HighGH₵0
52 Week LowGH₵0
Beta0.49
1 Month Change-0.19%
3 Month Change-0.56%
1 Year Change39.48%
3 Year Change1.32%
5 Year Change38.05%
Change since IPO7,379.11%

Recent News & Updates

Shareholder Returns

GCBGH BanksGH Market
7D0%0.07%0.03%
1Y39.5%39.9%70.7%

Return vs Industry: GCB underperformed the GH Banks industry which returned 40.8% over the past year.

Return vs Market: GCB underperformed the GH Market which returned 71.1% over the past year.

Price Volatility

Is GCB's price volatile compared to industry and market?
GCB volatility
GCB Beta0.49
Industry Beta0.58
Market Beta1

Stable Share Price: GCB is less volatile than 75% of GH stocks over the past 3 months, typically moving +/- 0% a week.

Volatility Over Time: GCB's weekly volatility (0%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19532,354John Adomakohhttps://www.gcbbank.com.gh

GCB Bank Limited engages in consumer and corporate banking, and treasury activities in Ghana. The company offers current accounts and savings accounts, time and other deposits, and foreign currency and exchange accounts; and personal loans and overdrafts, and short and medium term loans. It also provides SME solutions, such as business debit cards, bulk cash collection and payroll services, import and export finance, advance payments, letters of credit, bills for collection, fee collection, money transfer and remittance, business development and advisory services, insurance, bonds and guarantees, and mobile and Internet banking services, as well as investment banking services.

GCB Bank Fundamentals Summary

How do GCB Bank's earnings and revenue compare to its market cap?
GCB fundamental statistics
Market CapGH₵1.42b
Earnings (TTM)GH₵494.38m
Revenue (TTM)GH₵1.88b

2.9x

P/E Ratio

0.6x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
GCB income statement (TTM)
RevenueGH₵1.88b
Cost of RevenueGH₵22.18m
Gross ProfitGH₵1.85b
ExpensesGH₵1.36b
EarningsGH₵494.38m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.87
Gross Margin98.82%
Net Profit Margin26.36%
Debt/Equity Ratio16.2%

How did GCB perform over the long term?

See historical performance and comparison

Dividends

4.7%

Current Dividend Yield

15%

Payout Ratio

Valuation

Is GCB Bank undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GCB (GHS5.37) is trading below our estimate of fair value (GHS20.08)

Significantly Below Fair Value: GCB is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: GCB is good value based on its PE Ratio (2.9x) compared to the GH Banks industry average (4.1x).

PE vs Market: GCB is good value based on its PE Ratio (2.9x) compared to the GH market (5.3x).


Price to Earnings Growth Ratio

PEG Ratio: GCB is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: GCB's PB Ratio (0.6x) is in line with the GH Banks industry average.


Future Growth

How is GCB Bank forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

15.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GCB's forecast earnings growth (15.2% per year) is above the savings rate (9.1%).

Earnings vs Market: GCB's earnings (15.2% per year) are forecast to grow faster than the GH market (12.8% per year).

High Growth Earnings: GCB's earnings are forecast to grow, but not significantly.

Revenue vs Market: GCB's revenue (13.6% per year) is forecast to grow slower than the GH market (15.8% per year).

High Growth Revenue: GCB's revenue (13.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GCB's Return on Equity is forecast to be high in 3 years time (23.2%)


Past Performance

How has GCB Bank performed over the past 5 years?

15.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GCB has high quality earnings.

Growing Profit Margin: GCB's current net profit margins (26.4%) are lower than last year (28.7%).


Past Earnings Growth Analysis

Earnings Trend: GCB's earnings have grown by 15.2% per year over the past 5 years.

Accelerating Growth: GCB's earnings growth over the past year (2.2%) is below its 5-year average (15.2% per year).

Earnings vs Industry: GCB earnings growth over the past year (2.2%) underperformed the Banks industry 32.6%.


Return on Equity

High ROE: GCB's Return on Equity (21%) is considered high.


Financial Health

How is GCB Bank's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: GCB's Assets to Equity ratio (7x) is low.

Allowance for Bad Loans: GCB has a sufficient allowance for bad loans (163%).

Low Risk Liabilities: 92% of GCB's liabilities are made up of primarily low risk sources of funding.

Loan Level: GCB has an appropriate level of Loans to Assets ratio (21%).

Low Risk Deposits: GCB's Loans to Deposits ratio (27%) is appropriate.

Level of Bad Loans: GCB has a high level of bad loans (8.6%).


Dividend

What is GCB Bank current dividend yield, its reliability and sustainability?

4.66%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GCB's dividend (4.66%) isn’t notable compared to the bottom 25% of dividend payers in the GH market (4.7%).

High Dividend: GCB's dividend (4.66%) is low compared to the top 25% of dividend payers in the GH market (8.17%).


Stability and Growth of Payments

Stable Dividend: GCB's dividend payments have been volatile in the past 10 years.

Growing Dividend: GCB's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (14.9%), GCB's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GCB's dividends in 3 years are forecast to be well covered by earnings (16.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.9yrs

Average management tenure


CEO

John Adomakoh

0.92

Tenure

Mr. John Kofi Adomakoh is Managing Director at GCB Bank Ltd. since November 9, 2020 and also serves as it's Director since November, 2020. Mr. Adomakoh was with Egypt-based African Export-Import Bank, wher...


Leadership Team

Experienced Management: GCB's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Members

Experienced Board: GCB's board of directors are considered experienced (4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

GCB Bank Limited's employee growth, exchange listings and data sources


Key Information

  • Name: GCB Bank Limited
  • Ticker: GCB
  • Exchange: GHSE
  • Founded: 1953
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: GH₵1.423b
  • Shares outstanding: 265.00m
  • Website: https://www.gcbbank.com.gh

Number of Employees


Location

  • GCB Bank Limited
  • GCB Building
  • Thorpe Road
  • Accra
  • Ghana

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/21 20:59
End of Day Share Price2021/10/21 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.