GCB to open more Branches in the Northern Region

Tamale, May 24, GNA - Ghana Commercial Bank Ltd (GCB) would soon open four more branches in some strategic towns in the Northern Region. The bank plans to open branches in Walewale the capital of the East Mamprusi District and Zabzugu, capital of the Zabzugu/Tatale District, Saboba in the Saboba/Chereponi District and Sawla, district capital of the newly created Sawla/Tuna/Kalba District. Plans are advanced to open two more branches in the Tamale Metropolis to ease congestion at the Tamale Main Branch and the Aboabo market branch.

Mr. Ernest B. Kanton, Area Manager of the GCB in-charge of the Northern, Upper East and Upper West regions, said this at the launch of the GCB Rights Issue in Tamale on Friday.

The GCB, through this Rights Issue, hopes to raise 450 billion cedis by issuing 75 million cedis ordinary shares at 6,000 cedis per share in a ratio of one new share for every 2.2 existing shares to its shareholders and interested customers both in the country and abroad. Mr. Roko Frimpong, Deputy Managing Director of the GCB in-charge of Operations, said the GCB's strategic focus was to consolidate its retail banking business and to reposition itself in respect of Small and Medium Enterprises (SME's) and the large corporate banking businesses. He said in line with this, the bank seeks to expand and enhance accessibility of branch and account nation-wide to retail customers and also provide a platform for cooperates and SME's.

Mr. Frimpong said the share offer was therefore to support and drive the strategy, especially in the areas of systems and processes, working capital, employees, branch branding and products and services. He said the bank specifically seeks to rationalise processes, cluster key activities of branches and double the number of ATMs to 1,200.

Mr. Frimpong said for the past five years the bank's total assets had increased by 68 per cent, while deposits and loans and advances increased by 163 per cent and 282 per cent respectively. He said the bank's profit before tax also grew by 30 per cent during the same period and shareholders had been handsomely rewarded year after year with dividends amounting to 313.5 billion cedis. Mr. Mohammed Amin Adam, Tamale Metropolitan Chief Executive who launched the offer, commended the GCB for its role in transforming the country's economy.

He however urged the bank to expand its services to cater for the large informal sector instead of concentrating its activities to the contractors and industrialist. Mr Adam said Tamale was fast becoming the commercial hub of the northern sector of the country and urged the bank to extend some of its innovative services to the Metropolis to help in its socio-economic development. 24 May 07