GCB Bank MD: No-Dividend Decision Tied to BoG’s DDEP Reclassification, Not Financial Health
The Managing Director of GCB Bank PLC,Farihan Alhassan has explained that the bank is currently not paying dividend despite strong financial performance in the 2024 Financial year as a result of the Bank of Ghana’s reclassification of some investment the bank during the Domestic Debt Exchange Program(DDEP).
In an interview on Channel One TV’s Point of View on Wednesday, April 1,2026, the MD clarified that the banks inability to pay dividend has nothing to do with its financial health as others may suggest.
“It’s true, but I just need to clarify that our inability to pay dividends has nothing to do with the financial health of the institution.It has a lot more to do with a constraint that we are facing with some other banks, as a result of Bank of Ghana’s reclassification of some investment that we did” he stated
He futher explained the reclassification of bonds as part of Single Obligor Limit (SOL) after the DDEP by the BoG though not initially part was what led to the bank’s inability to pay dividend in accordance with the banking act.
“So, it’s in the banking act that when you exceed your SOL on certain transactions, you cannot pay dividends.The reclassification of this happened after DDP. So in the past, it was not considered as under the SOL.Then after we have reclassified them from the BOG perspective, it’s now subject to SOL. So that is actually the reason.Now, they are now considering the bond under the SOL classification.” He explained
Farihan Alhassan however assured shareholders that the bank is in talks with the BoG with regards to the situation and once the green light,the bank is ever willing to pay dividends its shareholders.
“We don’t want to raise expectations. Like I said, they are pushed as one of collaboration. We are engaging.We are having meetings around it. If they tell us to pay today, the bank is in a very good position to pay, as you can see from our financial numbers. So I appreciate the disappointments that our shareholders have.” He added
His comments follows the bank’s inability to pay out dividends to its shareholders despite recording historic figures including a net profit of GHS 2.04 billion, gross profit of GHS 3.2 billion and a healthy operating income of GHS 6 billion in the 2024 financial year.
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