Bloomberg News

GCB of Ghana Rises to 7-Month High on Profit Bets: Accra Mover

July 04, 2012

Ghana Commercial Bank Ltd. (GCB), the West African nation’s lender with the most branches, rose to the highest in more than seven months on speculation that first-half profit increased.

The stock gained 1.5 percent to 2 cedis as of 1:49 p.m. in the capital, Accra, the highest since Nov. 17.

Net income increased 18 percent in the first quarter to 23.4 million cedis ($12.1 million), the lender known as GCB said on May 30. Net interest income in the three months through March rose to 58.4 million cedis from 54.3 million cedis a year earlier. The bank had curbed lending in 2011 to ease impairment charges, resulting in a 64 percent drop in profit to 18 million cedis.

“We think the bank’s after tax profit grew 20 percent in the first half from a year earlier,” Xorlali Torsu, a stock trader at Accra-based Databank Financial Services Ltd., said by phone today. “Looking at their first-quarter results I don’t expect them to do a lot of risky lending, however, I’d expect fees and commission income as well as investments in government treasury bills to support earnings significantly.”

This year’s first-half results are expected within the next two weeks, Torsu said.

To contact the reporter on this story: Moses Mozart Dzawu in Accra at mdzawu@bloomberg.net

To contact the editor responsible for this story: Emily Bowers at ebowers1@bloomberg.net


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