contents - Doobia.com 2011 Annual_Report.pdf · contents Notice 5 The Board of Directors, Officials & Registered Office 7 Profile of Directors 8 Financial Highlights 11 Chairman’s

3GHANA COMMERCIAL BANK ANNUAL REPORT 2011

contentsNotice 5

The Board of Directors, Officials & Registered Office 7

Profile of Directors 8

Financial Highlights 11

Chairman’s Statement 13

Managing Director’s Report 18

Report of the Directors 22

Governance 24

Independent Auditors Report 28

Statements of Comprehensive Income 30

Statements of Financial Position 32

Statements of Changes in Equity 34

Statements of Cash Flows 38

Notes to the Financial Statements 40 - 102

Shareholder Information Appendix 1

4 GHANA COMMERCIAL BANK ANNUAL REPORT 2011

HELEN ADDO (MRS.)

COMPANY SECRETARY


Notice is hereby given that the 18th Annual General

Meeting of Ghana Commercial Bank Limited will be held

at the National Theatre on Friday, 29th June, 2012 at

10.00 a.m. to transact the following business:

1) To receive and consider the Financial Statements

for the year ended 31st December 2011 together

with the reports of the Directors and Auditors

thereon.

2) To declare a dividend for the year ended 31st

December 2011.

3) To re-elect Mr. Fifi Fiavi Kwetey retiring by rotation.

4) To authorize the Directors to determine the fees

of the Auditors.

DATED THIS 29TH DAY OF MAY, 2012

BY ORDER OF THE BOARD

HELEN ADDO (MRS.)

COMPANY SECRETARY

NOTES:

A member of the company entitled to attend and vote is

entitled to appoint a proxy to attend and vote in his/her

stead. A proxy need not also be a member.

A form of proxy is enclosed and for it to be valid for

the purpose of the meeting it must be completed and

deposited at the Share Registry, Ghana Commercial

Bank Ltd., Head Office, High Street, Accra, not less than

48 hours before the meeting.

noticeOF 18TH ANNUAL GENERAL MEETING


Mr. Simon Dornoo

Mr. Samuel Sarpong Mr. Elliot Gordor Mr. Joshua Kwaku Kyeremeh Peprah

Ms. Lauretta Vivian Lamptey

Mr. Fifi Fiavi Kwetey Mr. Lovelace Prempeh Adelaide Benneh (Mrs.)

Mrs. Charlotte Amah Osei

Dr. Fritz A. Gockel


BOARD OF DIRECTORS

Dr. Fritz A. Gockel (Chairman, Appointed 30/11/11)

Mr. Pryce Kojo Thompson (Chairman, Resigned 1/11/11)

Mr. Simon Dornoo (Managing)

Mr. Samuel Sarpong

Adelaide Benneh (Mrs.)

Mr. Elliot Gordor

Mr. Fifi Fiavi Kwetey

Ms. Lauretta Vivian Lamptey

Mrs. Charlotte Amah Osei

Mr. Joshua Kwaku Kyeremeh Peprah

Mr. Lovelace Prempeh

Mr. Edward Botchway (Appointed 25/1/12)

Mr. Samuel Amankwah (Resigned 20/12/11)

SECRETARY

Mrs. Helen Addo

Ghana Commercial Bank Building

Thorpe Road, High Street

P. O. Box 134

Accra

AUDITORS

KPMG

Chartered Accountants

13 Yiyiwa Drive, Abelenkpe

P. O. Box GP 242

Accra

REGISTERED OFFICE

Ghana Commercial Bank Building

Thorpe Road, High Street

P. O. Box 134

Accra

REGISTRARS

Share Registry

Ghana Commercial Bank Limited

Head Office, High Street

Accra

the boardof directors, officials and registered office


DR. AUGUSTINE FRITZ GOCKEL

Non - Executive Director - Dr. Augustine Fritz Gockel is Head

of the Department of Economics, University of Ghana, Legon,

Ghana. He holds a PhD. from the University of Manchester,

United Kingdom. He lectures numerous courses at the

postgraduate and undergraduate levels including Monetary

Theory and Practice, Economic Policy analysis, design and

evaluation. He also supervises doctoral and master’s level

dissertations, and is an external examiner at the University of

Cape Coast. He is the Vice President of the Academic Board of

the MPhil Programme for Anglophone Africa under the Auspices

of the African Economic Research Consortium (AERC), Nairobi,

and also a member of the PhD Academic Committee of the

AERC. Dr. Gockel has participated in instructional programmes

of the Ghana Stock Exchange and has presented papers at

several national and international conferences. He has several

publications to his credit in both local and international journals.

Dr. Gockel has considerable experience in economic policy

analysis and economic reform measures. He has been a

consultant to many local and international institutions including

the World Bank, USAID, ILO, UNDP, UNECA, Friedrich

Ebert Foundation, Ministry of Trade and Industry, National

Development Planning Commission, Ministry of Finance and

Economic Planning and West African Monetary Institute.

MR. SIMON DORNOO - MANAGING DIRECTOR

Managing Director – Mr. Simon Dornoo joined GCB on

4th March 2010 from Barclays Bank where he worked in

various Senior Management positions from January, 1999

to March, 2010. He worked locally with Barclays Bank of

Ghana as Finance Director and Country Treasurer as well

as with Barclays PLC, U.K. being the first African to be

appointed as Finance Director for Barclays Africa and the

Indian Ocean with oversight responsibility for ten countries.

Simon began his professional career with KPMG in 1985 where

he trained and later worked as an Audit Senior until 1990. As

one of the pioneers of CAL Bank in 1990, he was the first

Financial Controller and he subsequently held other senior

level positions in the Bank until December, 1998. Simon has

served on various Boards mainly in the financial services sector.

He is a qualified Chartered Accountant (CA Ghana) and has an

MBA degree from Manchester Business School, United Kingdom.

MR. SAMUEL SARPONG

Mr. Samuel Sarpong is currently the Chief Transformation

Officer. He joined the Board in March 2008 and holds a

degree from University of Guelph, Ontario, Canada (M.Sc.

Agric.) and Wilfrid Laurier University, Ontario, Canada

(MBA). He has also completed many professional courses.

From 1990 to 1995, Mr. Sarpong served as Policy Adviser in the

Ontario Ministry of Agriculture & Food and Ministry of Economic

Development & Trade, Canada. In 1996, he joined Canadian

Imperial Bank of Commerce (CIBC), holding senior roles in

credit risk management including Director Lending Products.

During his nine (9) years at CIBC, he worked in the following

divisions – Retail & Small Business Lending, BizSmart and CIBC

Visa. In 2005, he joined General Electric Corporation’s (GE)

Consumer Lending Business (GE Money Canada). As Senior

Manager in GE, Mr. Sarpong served as Risk Leader for 3 business

units – Credit Cards, Risk Infrastructure & Fraud and Mortgages.

MR. ELLIOT GORDOR

Non-Executive Director - Mr. Elliot Gordor is a seasoned

business executive with over twenty-five years experience. He

is also the Chief Executive Officer of Gelloq Company (Ghana)

Limited, a major player in Ghana’s haulage and logistic industry

with subsidiaries in Togo and the United States of America (USA)

and a Director of Conway & Sons LLC, USA, Millard Solutions

LLC, USA, MBG Ghana Limited and the Tema Development

Corporation.

He is a product of the University of Ghana and the University

of Mississippi with specialization in Business Administration.

profile of the directors profile of the directors FOR THE 18TH ANNUAL GENERAL MEETING


MR. JOSHUA K.K. PEPRAH

Non - Executive Director - Mr. Joshua K.K. Peprah has

over 30 years experience in the Telecoms/ICT industry. He

holds a Bachelor of Science Degree in Electrical and Electronics

Engineering (BSc. E&EE) from The Royal Military College of

Science, Shrivenham, UK and an MBA in Operations Research

and Marketing from Texas Christian University (TCU), Fort

Worth, Texas, USA. He worked for Texas Instruments (TI) in

Dallas, Texas and held several key positions and was a member

of the team that introduced the world famous Digital Signal

Processor (DSP) chip. He was the Director for Operations

and Marketing of the first Data Communications Company

(DATATEL) and also established the Computing Networks and

Systems Integration (CNSI) Limited, Ghana.

He is currently the Director for Regulatory Administration

Division of the National Communications Authority (NCA)

and Chairman of the National Technical Committee for

Analogue to Digital Television Broadcasting Migration.

Mr. Peprah has extensive experience in ICT matters through

participation in International Telecommunications Union –

Telecom sector and a member of the experts’ group working

on the ‘ITU Mark’ project. He is the current Vice Chairman for

Africa on the Telecom Standardization Advisory Group (TSAG)

of ITU dealing with issues on “Bridging the Digital Divide”

He is a past President of the Tema LIONS Club.

MS. LAURETTA VIVIAN LAMPTEY

Non-Executive Director - Ms. Lauretta Vivian Lamptey was

trained as a lawyer at the University of Ghana, where she earned

her LLB degree in 1980. She went on to attend the Ghana Law

School where she received a B.L. degree and was admitted to the

Ghana Bar in 1982. She received her third degree, a Masters in

International Business Law, from the London School of Economic

& Political Science (LSE) of the University of London in 1987.

Lauretta has had a distinguished career in investment banking

and capital markets, having held the positions of Head of Capital

Markets at Ecobank Ghana Ltd. and Head of Corporate Finance

at Cal Bank. However, she recently returned to her legal roots,

when in July 2011 Ms. Lamptey was sworn in as Ghana’s new

Commissioner for Human Rights and Chair of the Commission

on Human Rights and Administrative Justice (CHRAJ).

MR. FIFI FIAVI FRANKLIN KWETEY

Non-Executive Director - Mr. Fifi Fiavi Franklin Kwetey

has an Economics background and worked for a

number of years in the investment banking industry as

a Financial Analyst, a Funds Manager and a Stockbroker.

He at various times worked as Financial Analyst and

Stockbroker at the Strategic African Securities and Investment

Advisor and Funds Manager at the CDH Financial Holdings

Ltd. from 1998 to 2002. He also lectured capital market

courses on the Ghana Stock Exchange for a number of years.

He is currently the Deputy Minister of Finance and Economic

Planning. As part of his responsibilities, Hon. Kwetey

has direct supervisory responsibility over the Economic

Planning, Financial Services Sector and Oil and Gas issues.

He is also in charge of Public Procurement Authority, Securities

and Exchange Commission (SEC), Ghana Stock Exchange,

Ghana Statistical Service, Cocoa Sector, Customs Excise and

Preventive Service and the Department of National Lotteries.

He has a Bachelor of Arts Degree in Economics and

Psychology from the University of Ghana, Legon. He

also has a Diplome Superieur DU Francais Des Affairs

from the Chamber of Commerce & Industry of Paris.

MR. LOVELACE PREMPEH

Non - Executive Director - Mr. Prempeh is a Chartered

Accountant by profession. He is a fellow of the Institute of



Chartered Accountants, England and Wales. He is also a

member of the Institute of Chartered Accountants, Ghana.

He holds an honours degree in Economics from Lancaster

University, England.

Mr. Prempeh has a rich working experience in finance

and business management acquired over the years from

the United Kingdom and Ghana. He has worked with

reputable companies like PriceWaterhouseCoopers,

KPMG, SCOA and Tema Oil Refinery Ltd. (TOR).

He is currently a Corporate and Financial Consultant and

serves on the Boards of SDC Finance and Leasing Company

Ltd., TV3 Network Ltd. and Union Management Services Ltd.

MRS. ADELAIDE MARY BENNEH

Non-Executive Director - Mrs. Adelaide Mary Benneh

has a BA (Hons) degree in French and Spanish from the

University of Ghana and a MSc. degree in Management

Sciences from the University of Manchester, UK.

She worked with Bank of Ghana for several years and held

a number of appointments including Director and Head of

Human Resource Department. She was subsequently promoted

to the post of Advisor to the Governor of Bank of Ghana.

She was a Management Consultant at the Ghana International

Bank, London, UK in 2001. She was appointed Principal

of the National Banking College from 2001 – 2008.

She is the Chairperson of the Board of Directors of IFS Finance

& Leasing Company.

She is the Nkosuohene of her hometown, Wirenkyiren

Amanfrom in the Eastern Region.

MRS. CHARLOTTE A. OSEI

Non-Executive Director - Mrs. Charlotte A. Osei holds an

LLB (Hons) from the University of Ghana and was admitted

to the Ghanaian Bar in 1994. She also holds a Master of Law

degree (LLM) from Queen’s University, Canada and a Masters in

Business Leadership from the University of South Africa, Pretoria.

Charlotte’s law practice over seventeen years was focused on

corporate and commercial law, with particular emphasis on

transactions, corporate financing and restructuring, banking and

finance, investment, employment, compliance and corporate

governance, and public private partnerships. Charlotte

founded and managed Prime Attorneys, a business law firm

based in Accra until October 2011 when she was appointed

Chairman of the National Commission for Civic Education.

MR. EDWARD NARTEY BOTCHWAY

Edward Nartey Botchway was appointed Chief Finance Officer

of Ghana Commercial Bank Ltd. effective 1st December 2011.

Edward Nartey Botchway has been the Chief Finance Officer

for Ecobank Ghana and also Regional Chief Financial Controller

in charge of 5 countries namely Ghana, Liberia, Sierra Leone,

Gambia and Guinea. He was accountable for Finance, strategy,

research and procurement. Edward was a member of the

boards of Ecobank Investment Managers Ltd, Ecobank Leasing

Ltd and Ecobank Joint Venture Company Ltd. Edward was

also a member of Ecobank Ghana’s Executive Committee.

He was seconded to Ecobank Ghana’s parent company

Ecobank Transnational Incorporated (ETI) in Lome –

Togo, where he was in charge of Planning and

Budgeting for the entire 35 – country Ecobank Group.

Edward began his career with Citi Savings and Loans Limited

where he held various positions including Finance Manager. He

also served as a member of Empretec Ghana’s loan approval

committee.

Edward is passionate about Strategy and the development

of Ghanaian institutions. He is a Chartered Accountant

– FCCA (ACCA-UK) and ICA (Ghana) and holds an

honours degree in Economics from the University of Ghana.


financial highlightsfinancial highlights



financial highlightsfinancial highlights The Group The Bank

Restated Restated

2011 2010 2011 2010

At 31 December GH¢’000 GH¢’000 GH¢’000 GH¢’000

Total assets 2,463,377 2,084,656 2,454,564 2,076,361

Loans and advances to customers (net) 476,211 995,356 476,211 995,356

Customer deposits 2,061,390 1,584,055 2,061,390 1,584,055

Shareholders’ equity 178,240 181,100 169,473 173,623

Government securities 1,196,910 453,389 1,195,981 452,461

For the year ended 31 December

Profit before tax 31,079 71,367 29,681 68,611

Profit after tax 17,972 50,880 16,683 48,002

Dividend per share (Ghana pesewas) 7 7 7 7

Earnings per share (Ghana pesewas):

- Basic 7 19 6 18

- Diluted 7 19 6 18

Return on equity (%) 10 28 10 28

Return on assets (%) 1 2 1 2

At 31 December

Number of staff 2,273 2,314 2,273 2,314

Number of branches 157 157 157 157


DR. FRITZ A. GOCKEL

CHAIRMAN


Ladies and Gentlemen, it is my great pleasure to welcome

you on behalf of the Board of Directors and Management

to the 18th Annual General Meeting of Ghana Commercial

Bank Limited (GCB). It is also the pleasure of your Board of

Directors to present to you the Annual Report and Financial

Statements of your Bank for the year ended 31st December

2011.

The year 2011 brought many challenges to the entire

banking sector on the domestic and international levels.

On the domestic front, the deceleration in inflation and

the subsequent fall in interest rates (though positive

developments for the macro-economy) posed revenue

generation challenges for banks. Internationally the financial

crises in Euro zone was transmitted through trade and capital

market channels resulting in increased currency risk.

REVIEW OF THE GLOBAL ECONOMY

Global economic activity weakened in 2011 while

commodity prices stayed high, posing different downside

risks for developed, emerging and developing countries. The

International Monetary Fund (IMF) estimated global growth

at 4.0 percent for 2011, which was lower than the 5.1 percent

growth in 2010.

In the advanced economies namely USA, Japan and the

Euro area, fiscal tightening, natural disasters, sovereign debt

and banking problems caused lower than expected growth

in outputs. Growth in emerging economies was robust in

the first half of the year, but moderated in the second half

of the year, caused by global supply-chain disruptions among

other factors, thereby recording 6.4 percent. For Sub-Saharan

Africa (SSA), growth continued to be impressive at 5.2

percent following greater contributions from expansions in

telecommunication and manufacturing activities.

Global demand and supply imbalances partly accounted for

price hikes in crude oil which exerted immense pressure

on oil-importing countries, including Ghana. Inflationary

pressures elevated, especially in emerging and developing

economies on account of increased food and energy prices,

thereby raising global inflation to 4.0 percent in 2011 from

2.7 percent in 2010.

REVIEW OF THE GHANAIAN ECONOMY

Ghana’s economy recovered strongly in 2011 following from

the macroeconomic stabilization and fiscal consolidation

under an IMF Extended Credit Facility. This facility engendered

improved stability, making the economy robust and remaining

resilient to external shocks, especially the rising oil and food

prices on the international market. Provisional data published

by the Ghana Statistical Service suggest that the Gross

Domestic Product (GDP) expanded by 13.5 percent in

2011 backed by oil exports, compared to the growth of 7.7

percent realised in 2010. It appears that the main thrust of

Government’s fiscal stance was efficient revenue mobilisation

and prudent expenditure management, which was aimed at

minimizing overruns on spending. The fiscal operations up to

November 2011 resulted in a deficit of GH¢2.2 billion. On

the external front, up to November 2011, total exports and

imports amounted to US$11.8 billion and US$14.4 billion

chairman’s statement


chairman’s statementrespectively, with a balance of trade deficit of US$2.6 billion.

The increase in export value supported by oil revenue, among

other commodities, impacted positively on Ghana’s Gross

International Reserves which stood at US$5.4 billion at the

end of December 2011.

Developments in monetary stance saw a sizeable growth of

38.1 percent in broad money (M2+), partly causing interest

rates on financial assets including the benchmark 91-day

Treasury Bill to trend downward. During the year, the Bank of

Ghana reduced the policy rate by 100 basis points from 13.5

percent in January 2011 to 12.5 percent in December 2011,

causing a reduction in the average base rate of the Deposit

Money Banks, which fell from 25.8 percent at the beginning of

the year to about 22.8 percent at the end of the year.

In general, the banking sector recorded steady growth and

strong financial soundness. The growth reflected in assets,

deposits and net-worth with a boost in earnings, portfolio

quality, liquidity, capital adequacy and declining non-performing

loans associated with the financial soundness.

Headline inflation remained within the single-digit bands

during the year. At 9.1 percent in January, inflation decelerated

to 8.4 percent at the end of the third quarter, but marginally

inched up to 8.58 percent to close the year. The reductions


chairman’s statementin inflation and interest rates however, could not stabilize the

foreign exchange market. The Ghanaian Cedi, on average,

depreciated against the US Dollar by 4.9 percent, on year-on-

year basis. On the Ghana Stock Exchange, the contagion effect

from the euro-zone was believed to have contributed to the

poor performance as measured by major stock indicators.

STRATEGY OVERVIEW

Ladies and Gentlemen, last year we informed you that

observable weaknesses in the Bank required transformational

changes critical to enable the Bank to attain sustainable

competitive advantage. Accordingly, your Bank in 2011 started

a change management process dubbed “Good to Great”. The

“Good to Great” program has both short-term and long-term

objectives. The short-term objective seeks to reposition GCB

among the top performing banks in Ghana, while the long-term

focus is to make GCB one of the best and most respected

banks in Africa. This journey is not going to be easy; but with

tenacity predicated on sound policy directions and initiatives;

and with the skills of the current crop of management and

support from our staff, this aspiration will be achieved. Among

the critical issues that the change from Good to Great seeks

to bring on board are:

• Short to long term optimization of shareholder value

• Improving the Bank’s Governance Framework via

organizational structures, policies & procedures and

committee structures

• Ensuring improved service efficiency through Central

Processing, Score Card Lending for Personal &

SME Loans, ATMs, Internet Banking and Mobile Banking

• Improved governance and control systems and

enhanced regulatory compliance checks and monitoring

• Branch upgrading to ensure comfort and convenience

for our valued customers and enhanced service delivery.

• Develop new products aimed at making banking with

the bank easier and taking customers away from the

banking halls.

• Improved branding and better brand management

To achieve this, the Board approved changes to the bank’s

organogram to align it with the bank’s strategic priorities and

direction.

FINANCIAL PERFORMANCE

Your bank achieved sound financial results in 2011. The group’s

Net Income of GH¢278.1 million was 6.7 percent above 2010

net income. There was a significant improvement in the Bank’s

impairment charge on loans and advances which dropped

from GH¢70.9 million in 2010 to GH¢10.6 million in 2011

as your Bank continued to adopt effective risk management

strategies.


chairman’s statementOperating expenses of GH¢251.3 million in 2011 was 31%

higher than the previous year. However, 2011 year costs

include a number of one-off costs which are not expected to

recur in subsequent years. On the whole, the year’s operations

resulted in profit after tax of GH¢ 17.9 million for the group

compared with the GH¢50.9 million realised in 2010. The

decline in profits reflects the impact of some of the changes

we embarked on to put your bank on a firmer footing going

forward. The Bank has radically improved the quality of its

revenues as it is no longer skewed and we have tackled other

challenges by ensuring that adequate provisions are made

against credit and non-credit related losses.

SHARE PRICE MOVEMENTS AND DIVIDEND

The contagion effect from the euro-zone adversely affected

many stocks including ours on the Ghana Stock Exchange.

In view of this, the bank’s share price dipped. As at January

4, 2011, GCB shares were trading on the stock exchange at

GH¢2.70, and this increased to GH¢3.00 on June 30, 2011. By

the end of the year the share price had moved downward to

GH¢1.85. However, the outlook for 2012 remains positive and

hinges strongly on the improved fundamentals of the Bank.

Despite the lower profits reported for the year 2011 the Board

has proposed a dividend of GH¢ 0.07 per share amounting to

GH¢ 18.6 million. This is the same as the amount paid out

last year.

CHANGES TO THE BOARD

Regrettably, Mr. Pryce Kojo Thompson resigned from the Board

in November 2011. As Chairman of the Board, he brought a

wealth of experience to board deliberations and the campaign

to move the Bank from Good to Great.

We also acknowledge the resignation of Mr. Samuel Amankwah

(former Deputy Managing Director in charge of Finance) from

the Board during the year. Two other directors: Mrs Charlotte

Osei and Ms. Lauretta Vivian Lamptey have also retired from

the Board. We take the opportunity to wish them all well

in their future endeavours and thank them for the services

rendered to the Bank.

CONVERSION OF TEMA OIL REFINERY (TOR) DEBT

INTO BOND

In a bid to find a lasting solution to the TOR debt, the

Government as the sole shareholder of TOR, paid GHC 445

million to the Bank in March 2010. I am happy to inform you

that in April 2011, the Government converted a substantial

part of TOR’s outstanding debt by issuing a GHC 572 million

medium-term Bond to the Bank.


chairman’s statementCORPORATE SOCIAL RESPONSIBILITY

The Bank contributed in diverse ways towards the welfare of the

society. The contributions went mainly to areas such as health,

education, communications, culture, sports and the environment. A

total amount of GH¢0.7 million was committed in 2011 compared

to the GH¢0.4 million in 2010.

AWARDS

I am delighted and proud to inform you that the Global Finance

Magazine, a publishing firm in collaboration with International

Monetary Fund (IMF) and the World Bank selected GCB as the

“Best Emerging Market Bank” in Africa for the year 2011. Similarly,

The Banker Magazine of the Prestigious Financial Times Group of

the United Kingdom awarded GCB the “Bank of the Year” in Ghana

for 2011. This is testament to the hard work and commitment of

the staff, management and the Board of your Bank.

OUTLOOK

In line with the strategic focus, your Bank will pursue broad

objectives to ensure the delivery of quality service and creation

of value for shareholders. In this direction, the Bank will deepen its

wide area network base, deploy modern systems and technology

to provide integrated back and front office operations that will

enhance quality service delivery. We will also work hard to develop

an appropriate mix of products and services to suit the changing

demands and requirements of our customers. The Bank will also

strengthen its capacity to lead in the financing of consumer credit

and financially rewarding businesses in key sectors of the economy.

CONCLUSION

Valued Shareholders and fellow Directors, I wish to thank you all

for your support and commitment to bring the Bank this far. To

the Management and staff, let me say your individual contributions

over the years are acknowledged and appreciated. I trust that we

shall all continue to work harder to meet the expectations of our

cherished customers and together, we will all move GCB from

“Good to Great”.

DR. FRITZ A. GOCKEL

CHAIRMAN


managing director’s reportmanaging director’s reportDear Shareholder

I am very pleased to present the operating results and financial

position of your bank to you for the second time since joining

GCB two years ago.

MARKET DEVELOPMENTS

The year 2011 signalled the beginning of the much anticipated

effects of some of the regulatory changes in the Banking Industry.

Mergers and Acquisition talks increased in the wake of increased

capital requirements by the Bank of Ghana together with the

effects of margin pressures on operating results meant that

banks are now beginning to focus on gaining scale and improving

efficiency to remain profitable.

Banks cut their base rate by between 400 and 800 basis points

during the year in response to market pressures for re-alignment

of rates to reflect developments in the money market. We do

not anticipate a further rate reduction as we expect the Bank

of Ghana to begin an interest rate tightening process to stem

inflationary pressures.

The capital market was generally bearish, mainly as a result of

developments in Europe and North America, which led to a

significant decline in the stock index. The GSE-composite index

declined by 3.10% during the year reversing all the gains recorded

in 2010 with financial sector stocks being the most affected.

OPERATING RESULTS

Our operating results reflect some of the major change initiatives

we embarked on in 2010. Two major impacts were the structural

change to the balance sheet, which had a short-term adverse

impact on revenues, and the results of deep dive exercise carried

out that required additional non-credit related impairment costs

to be taken up during the year.

Against this backdrop, GCB posted strong underlying operating

results for the year 2011, which demonstrates the robustness of

your Bank and bodes well for its future performance.

Profit Before Tax (PBT) was GHC31.1 million compared

to GHC71.3 million in 2010, down 56%, mainly due to a

combination of anticipated revenue shortfall from restructuring

of portfolios and higher costs offset by a significant reduction in

impairment charges.

The revenue shortfall was a direct consequence of a 50%

reduction in the loan book, which was necessary to bring the

Bank’s exposure to the public sector within limits. However the

full adverse effect on Net Income of this structural change was

offset by strong fee income performance, lower funding costs

and significantly lower credit impairment charges. It is therefore

notable that the Net Income of GHC 278 million was 7% higher

than the GHC 260.5 million recorded over the same period a

year ago.


managing director’s reportmanaging director’s reportNet Commissions and Fees were GHC 64.5 million, up 41% on

the previous year. Generally, the Bank recorded growth on all fee

income lines. Commissions from consumer banking businesses is

beginning to show good growth as we leverage technology to

make products and services available to our customers through

the Bank’s wide distribution network. Net trading income was

GHC 13.5 million representing a remarkable turnaround from

the previous year.

Operating costs for the year were GHC 251.3 million, up 31%

over the GHC 192.3 million recorded last year. This was mainly

driven by staff costs, depreciation charges and ICT running costs.

It also includes one-off GHC 6 million staff restructuring costs

and GHC31 million (2010: GHC4 million) non-credit related

impairment losses, which were necessary to deal with long

outstanding balances. There was also a net increase in provision

for Defined Benefit obligations of GHC 2.9 million.

The Bank therefore recorded a Cost Income Ratio of 87%

compared to 58% the previous year. I believe the cost and

productivity enhancement initiatives embarked on will see Cost

Income Ratio trend down in the near term.

Impairment charge on Loans and Advances of GHC 10.6 million

was down by 85% from the GHC 70.9 million reported over the

same period last year. Risk management is a key focus area; we

are upgrading our risk systems and capabilities to ensure that we

achieve best-in-class status in this area.

The results so far reflect the impact of structural changes and

initiatives we have embarked on to reposition GCB among the

best in the market and prepare it for future expansion.

We completed a number of customer service improvement

initiatives during the year ; we successfully launched e-banking

products and services to address the needs of our Consumer

Banking and Corporate Banking customers. We launched SMS

Banking and Internet banking. We enhanced the Bank’s Electronic

Bill Payments Product to improve our offering in the domestic

payments market and more importantly we have completely

overhauled and expanded our ATM service, which now provides

reliable service to customers. We also launched a new Personal

loan product that has become the Bank’s flagship product.

We are seeing the effects of these improvements in increased

customers and business volumes.


FINANCIAL POSITION REVIEW

Total Assets was GHC 2.46 billion, up by 18% over the previous

year’s GHC 2.08 billion. This growth was driven by strong growth

in customer deposits that increased by 30% to GHC 2.06

billion (2010: GHC 1.58 billion). The improved deposit growth

is attributable to a number of factors including the enhanced

product offering in cash management and domestic payments

for Corporate and Consumer Banking customers.

Loans and Advances were down by 52% to GHC 476.2 million

(2010: GHC995.3 million). The Government of Ghana retired

the TOR debt by issuing bonds to the Bank. This resulted in

the decrease in the loan book and a corresponding increase in

Investment Securities portfolio.

The Bank’s Non-Performing Loans (NPLs) ratio increased

to 26% from 15% the previous year as a result of the sharp

reduction of the loan portfolio. It is, however, noteworthy that

the impairment allowance set aside adequately covers NPLs as

it represents 90% of NPLs.

LIQUIDITY AND CAPITAL

The Bank’s liquidity position has significantly improved reflecting

in strong liquidity ratios. We do not anticipate any challenges

with meeting our funding requirements in the short to medium

term.

The Bank’s Capital Adequacy Ratio (CAR) was 11% compared

to 10% a year ago. This is attributable to a combination of a

15% decrease in Risk Assets caused by - restructuring of the

loan book and a 6% decrease in regulatory capital, the result of

provisions or charges made for pensions and other non-credit

related impairments.

PROGRESS ON KEY INITIATIVES

We have made progress in strengthening our leadership

team in Finance, Operations, Human Resources, Information

Communications and Technology and Corporate Banking.

We have restructured the Bank along business lines mainly

Consumer Banking, Corporate Banking and Treasury. This should

provide focus on our key segments of the market.

managing director’s reportmanaging director’s report


We are making steady progress with the implementation of our

HR change program, which involves a comprehensive review of

the HR framework.

The design and implementation of enhanced Governance, Risk

and Control Framework is on course.

We have introduced new channels to reach our customers

to complement our large branch network. We continue to

enhance our payment systems to simplify customer transactions

and improve control.

We have created the platform for Consumer Banking growth and

the results are beginning to show in the significantly improved

turnaround time with Personal Loan Credit Scored product.

Cost and productivity enhancement remains an imperative.

We are providing the needed investment to ensure sustainable

reduction in costs and improvement in process efficiency.

In recognition of the progress made so far your Bank won two

prestigious awards, Best Bank in Ghana in 2011 from the Banker

Magazine and the Global Finance Magazine. We are indeed

grateful for this recognition and hope this will spur us on to

greater achievements.

LOOKING AHEAD

We aspire to be a financial services company that provides

outstanding services to its customers, delivers superior returns

to its shareholders, a great place to work and is alive to its

corporate citizenship role. The year 2012 looks promising and

I expect that it will demonstrate our resolve to move this Bank

towards the desired goal of becoming one of the best performing

banks in the markets in which we operate. We will continue with

the initiatives already begun with a focus on accelerating our HR

transformation initiatives, which I believe is a necessary condition

for delivering our promise.

ACKNOWLEDGEMENTS

I would like to thank our cherished customers for their business

and continued patronage of our services, our staff for their hard

work and dedication to duty and our Board for their guidance

as we go through the transformation process.

managing director’s reportmanaging director’s report

MR. SIMON DORNOO MANAGING DIRECTOR


The Directors submit their report together with the financial

statements of the Bank and its subsidiary (“the Group”) for the

year ended 31 December 2011.

DIRECTORS’ RESPONSIBILITY STATEMENT

The Bank’s Directors are responsible for the preparation and

fair presentation of these financial statements in accordance

with International Financial Reporting Standards (IFRSs) and

in compliance with the Companies Code, 1963 (Act 179) and

the Banking Act, 2004 (Act 673) as amended by the Banking

(Amendment) Act, 2007 (Act 738) and for such internal

control as the Directors determine is necessary to enable the

preparation of financial statements that are free from material

misstatement, whether due to fraud or error.

The Directors have made an assessment of the ability of the

Bank and its subsidiary to continue as going concerns and have

no reason to believe any of the entities will not be a going

concern in the year ahead.

PRINCIPAL ACTIVITIES

The Group’s principal activities comprise consumer and

corporate banking and treasury activities. It also engages in

equity investments through its subsidiary. There was no change

in the nature of the Group’s business during the year.

SHAREHOLDING STRUCTURE

The Bank’s shareholding structure at the end of the year was as

follows:

Percentage

Shareholder Holding

Social Security and National

Insurance Trust (SSNIT) 29.81%

The Government of Ghana 21.31%

Institutions and individuals 48.88%

SUBSIDIARY AND ASSOCIATES

Development Finance & Holdings Limited, a company

incorporated in Ghana to engage in investment activities, is a

wholly owned subsidiary of the Bank.

The Bank holds 40% interest in Activity Venture Finance

Company, a company incorporated in Ghana, which provides

credit and equity financing to eligible small, and medium scale

enterprises (SMEs).

The Bank holds 20% interest in Ghana International Bank Plc,

a company incorporated in the United Kingdom to provide

universal banking services.

CHANGE OF EXTERNAL AUDITORS

Following a directive by the Central Bank (Bank of Ghana)

limiting the tenure of auditors of Banks to five years, the Bank

appointed KPMG Ghana as its external auditors to replace the

previous auditors who had exceeded that timeframe.

PRIOR YEAR ADJUSTMENTS

A number of comparative account balances disclosed in

the statements of financial position, comprehensive income,

changes in equity and cash flows have been restated to ensure

compliance with the requirements of IFRS. An explanation of

how these restatements affected the Bank’s financial position and

performance is set out in Note 43 to the financial statements.

IMPAIRMENT LOSSES

An impairment charge of GH¢11 million (2010: GH¢71

million) was recognized during the year in respect of loans and

advances. The Board also carried out a comprehensive review

of other assets and liabilities as part of an exercise to reassess

balances in the current and past financial statements of the

Bank.

report of the directors to the members of GCB


report of the directors Following this review, a number of accounts were highlighted to have balances whose carrying amounts exceeded their recoverable

amounts making it necessary to recognize impairment losses totalling GH¢74 million, made up of losses amounting to GH¢31

million, GH¢4 million and GH¢39 million for the years 2011, 2010 and 2009 respectively.

FINANCIAL STATEMENTS AND DIVIDEND

The Bank’s results for the year are set out in the attached financial statements, highlights of which are as follows:

2011 2010

GH¢’000 GH¢’000

Profit for the year (attributable to equity holders) 16,683 48,002

to which is added the balance brought forward

on income surplus account of 7,328 (8,845)

------- ---------

24,011 39,157

--------- ---------

out of which is transferred to the statutory reserve

fund in accordance with the Banking Act an amount of (4,171) (24,001)

transfers from credit risk reserve of 17,516 1,606

and prior year’s dividend paid of (18,550) (9,434)

---------- ---------

(5,205) (31,829)

-------- ----------

leaving a balance to be carried forward of 18,806 7,328

==== ===

In accordance with section 29(c) of the Banking Act, 2004 (Act 673) as amended, an amount of GH¢4,171,000 (2010: GH¢24,001,000)

was transferred to the statutory reserve fund from retained earnings bringing the cumulative balance on the statutory reserve fund

at the year end to GH¢55,210,000 (2010: GH¢51,039,000).

The Directors recommend the payment of a dividend of GHp7 (2010: GHp7) per share amounting to GH¢18,550,000 (2010:

GH¢18,550,000).

The Directors confirm that to the best of their knowledge:

• The financial statements, prepared in accordance with applicable laws and the relevant financial reporting framework,

give a true and fair view of the financial position and performance of the bank;

• The state of the Group’s affairs is satisfactory.

APPROVAL OF THE FINANCIAL STATEMENTS

The financial statements of the Bank were approved by the Board of Directors on 23 May 2012 and signed on their behalf by:

CHAIRMAN MANAGING DIRECTOR

24

governanceGhana Commercial Bank Limited is committed to a

continuous process of improving its corporate governance

practices. To this end, the Bank is currently updating its

corporate governance framework to align these structures

with international standards and leading practices. The

Bank’s corporate governance principles are contained in

a number of corporate documents, including the Bank’s

regulations, staff service rules and other policies issued

from time to time.

THE BOARD OF DIRECTORS

The role of the Board is to guide and monitor the

business affairs of the Bank to ensure that the interests of

shareholders are safeguarded and upheld.

At 31st December 2011, the Board had ten (10) members,

made up of Dr. Fritz Gockel the Non - Executive Chairman,

seven (7) other Non - executive Directors, and two (2)

Executive Directors. The Board has delegated various

aspects of its work to the Audit and Compliance, Executive

and Human Resource and Remuneration Committees.

GHANA COMMERCIAL BANK ANNUAL REPORT 2011


governanceAUDIT AND COMPLIANCE COMMITTEE

The Audit and Compliance Committee has as its Chairman, Mr.

Lovelace Prempeh, a non-executive Director. This committee

includes two (2) other non-executive members of the Board.

The roles of this committee include:

• Reviewing the internal audit function, its mandate and

audit activities;

• Reviewing internal and external audit planning

arrangements and findings reports and supervising the

implementation of recommendations;

• Overseeing the implementation of recommendations

made by regulatory and supervisory authorities following

reviews carried out;

• Reviewing the Bank’s annual budget;

• Working with the external auditors to finalize the

annual financial statements for Board approval; and

• Reviewing quarterly, half-yearly and annual financial

results before the Board’s review and approval;

EXECUTIVE COMMITTEE

The committee has as its Chairman, Dr. Fritz Gockel, a Non-

Executive Director. This committee includes two other non-

executive members of the Board.

The roles of the committee include:

• Approving all credits within limits defined in the Bank

Credit Policy and within the statutory requirements set

by the respective regulatory and supervisory authorities;

• Reviewing and endorsing credits approved by executive

management;

• Reviewing and recommending to the full Board, credit

policy changes initiated by executive management;

• Ensuring compliance with the Bank’s credit policies and

statutory requirements prescribed by the regulatory

and supervisory authorities;

• Reviewing periodic credit portfolio reports and

assessing portfolio performance;

• Approving exceptions, write-offs and discounts of non-

performing credit facilities; and

• Reviewing audit reports in respect of compliance with

and implementation of Risk Management Policies.

• Any other reponsibility that may be assigned by the

Board.


governanceHUMAN RESOURCE & REMUNERATION

The committee has as its Chairman, Mrs. Adelaide Benneh, an

independent non-executive Director. This committee includes

two other non-executive members of the Board.

The roles of the committee include:

• Assessing and making recommendation on the

adequacy of the Bank’s Human Resources and Human

Resource policies;

• Reviewing the recruitment and termination policies

of the Bank including employment contracts,

remuneration, pension and other rewards and make

appropriate recommendations; and

• Any other responsibility that may be assigned by the

Board.

SYSTEMS OF INTERNAL CONTROL

The Bank generally has systems of internal control through

which risks are identified, managed and monitored. These

controls are designed to provide reasonable assurance that

risks faced by the Bank are adequately controlled.

The corporate internal audit and compliance function of

the Bank plays a key role in providing an objective view and

continuing assessment of the effectiveness of the internal control

systems. The systems of internal control are implemented and

monitored by appropriately trained personnel, with clearly

defined duties and reporting lines.



REPORT ON THE FINANCIAL STATEMENTS

We have audited the financial statements of Ghana

Commercial Bank Limited, which comprise the statements

of financial position at 31 December 2011, statements of

comprehensive income, changes in equity, and cash flows for

the year then ended and notes to the financial statements,

which include a summary of significant accounting policies and

other explanatory notes as set out on pages 30 to 102.

Directors’ Responsibility for the Financial Statements

The Bank’s Directors are responsible for the preparation and

fair presentation of these financial statements in accordance

with International Financial Reporting Standards and in

compliance with the Companies Code, 1963 (Act 179) and

the Banking Act, 2004 (Act 673) as amended by the Banking

Amendment Act 2007 (Act 738) and for such internal

control as the Directors determine is necessary to enable the

preparation of financial statements that are free from material

misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial

statements based on our audit. We conducted our audit in

accordance with International Standards on Auditing. Those

standards require that we comply with ethical requirements

and plan and perform the audit to obtain reasonable assurance

whether the financial statements are free from material

misstatement.

An audit involves performing procedures to obtain audit

evidence about the amounts and disclosures in the financial

statements. The procedures selected depend on the auditor’s

judgment, including the assessment of the risks of material

misstatement of the financial statements, whether due to fraud

or error. In making those risk assessments, the auditor considers

internal control relevant to the entity’s preparation and fair

presentation of the financial statements in order to design

audit procedures that are appropriate in the circumstances,

but not for the purpose of expressing an opinion on the

effectiveness of the entity’s internal control. An audit also

includes evaluating the appropriateness of accounting policies

to the shareholders of GCB independent auditor’s report


used and the reasonableness of accounting estimates made by

the Directors, as well as evaluating the overall presentation of

the financial statements.

We believe that the audit evidence we have obtained is

sufficient and appropriate to provide a basis for our audit

opinion.

Opinion

In our opinion, the financial statements give a true and fair

view of the consolidated and separate financial position of

Ghana Commercial Bank Limited at 31st December 2011 and

its consolidated and separate financial performance and cash

flows for the year then ended in accordance with International

Financial Reporting Standards and in compliance with the

Companies Code, 1963 (Act 179) and the Banking Act, 2004

(Act 673) as amended by the Banking Amendment Act 2007

(Act 738).

Report on other legal and regulatory requirements

Compliance with the requirements of Section 133 of the

Companies Code, 1963 (Act 179), and Section 78 of the Banking

Act, 2004 (Act 673) as amended by the Banking Amendment Act

2007 (Act 738)

We have obtained all the information and explanations, which

to the best of our knowledge and belief, were necessary for

the purpose of our audit.

In our opinion, proper books of account have been kept

and the statements of financial position and comprehensive

income are in agreement with the books of account.

The Bank’s transactions were within its powers and the Bank

generally complied with the relevant provisions of the Banking

Act, 2004 (Act 673) as amended by the Banking Amendment

Act, 2007 (Act 738).

CHARTERED ACCOUNTANTS

13 YIYIWA DRIVE, ABELENKPE

P O BOX GP242

ACCRA

23 May 2012

to the shareholders of GCB independent auditor’s report


for the year ended 31 december 2011statements of comprehensive income

The Group The Bank

Restated Restated

2011 2010 2011 2010

Note GH¢’000 GH¢’000 GH¢’000 GH¢’000

Interest income 5 256,619 389,096 256,619 389,096

Interest expense 6 (49,807) (102,812) (49,807) (102,812)

Net interest income ---------- ------------ ---------- ------------

206,812 286,284 206,812 286,284

---------- ---------- ---------- ----------

Fees and commission income 7 67,258 48,561 67,258 48,561

Fees and commission expense 8 (2,730) (2,680) (2,730) (2,680)

Net fees and commission income -------- -------- -------- --------

64,528 45,881 64,528 45,881

-------- -------- -------- --------

Net trading and other income 9 13,485 (3,091) 13,485 (3,091)

Other income 10 3,911 2,432 4,447 2,208

Other income -------- -------- -------- -------

17,396 (659) 17,932 (883)

-------- -------- -------- -------

Total income 288,736 331,506 289,272 331,282

Impairment charge on loans and advances 11 (10,650) (70,931) (10,650) (70,931)

---------- ---------- ---------- -----------

Net income 278,086 260,575 278,622 260,351

---------- ---------- ---------- ----------

Operating expenses 12 (251,328) (192,381) (248,941) (191,740)

------------ ------------ ------------ ------------

Results of operating activities 26,758 68,194 29,681 68,611

Share of profit of associates 36 4,321 3,173 - -

------- ------- ------- ------


Taxation 13 (13,107) (20,487) (12,998) (20,609)

---------- ---------- ---------- ----------

Profit for the year 17,972 50,880 16,683 48,002

-------- -------- -------- --------


for the year ended 31 december 2011

Statements of comprehensive income for the year ended 31 Decemeber 2011 (cont’d)

The Group The Bank

Restated Restated

2011 2010 2011 2010

Note GH¢’000 GH¢’000 GH¢’000 GH¢’000


Other comprehensive income

Net (loss)/gain in fair value of

investments in equity instruments 32 (1,143) 307 (1,144) 320

Actuarial (loss)/gain on defined

benefit obligations 29 (1,519) 396 (1,519) 396

Deferred tax on actuarial (loss)/gain

on defined benefit obligations 29 380 (99) 380 (99)

----- ----- ----- -----

Total comprehensive

income for the year 15,690 51,484 14,400 48,619

==== ==== ==== ====

Basic and diluted earnings

per share (in GH¢) 15 0.07 0.19 0.06 0.18

The notes on pages 40 to 102 form an integral part of these financial statements.


at 31 december 2011statements of financial position

Restated Restated

The Group 2011 2010 1/1/10

Note GH¢’000 GH¢’000 GH¢’000

Assets

Cash and cash equivalents 16 435,469 349,383 139,132

Government securities 17 1,196,910 453,389 216,784

Advances to Banks 18 217,179 179,706 186,307

Loans and advances to customers 19 476,211 995,356 1,265,517

Investment securities: available- for-sale 20 4,562 4,161 4,408

Investment in associates 36 20,240 7,156 5,357

Investment in other equity securities 22 198 863 863

Income tax asset 13 6,309 - -

Deferred tax asset 13 11,379 4,745 8,527

Property and equipment 23 53,955 54,684 51,345

Intangible assets 24 1,841 789 837

Other assets 25 39,124 34,424 25,520

--------- --------- ----------

Total assets 2,463,377 2,084,656 1,904,597

====== ====== ======

Liabilities

Deposits from customers 26 2,061,390 1,584,055 1,259,470

Other liabilities 27 108,425 189,542 136,154

Borrowings 28 79,000 73,125 331,800

Income tax liabilities 13 - 23,498 6,773

Employee benefit obligations 29 36,322 33,336 31,350

--------- --------- ---------

Total liabilities 2,285,137 1,903,556 1,765,547

====== ====== ======

Equity

Stated capital 30 72,000 72,000 72,000

Retained earnings 31 26,732 13,965 (5,086)

Fair value reserve 32 509 1,652 1,345

Statutory reserve 33 55,210 51,039 27,038

Credit risk reserve 34 24,631 42,147 43,753

Other reserves 35 (842) 297 -

--------- ----------- ----------

Total equity 178,240 181,100 139,050

----------- ----------- ----------

Total liabilities and equity 2,463,377 2,084,656 1,904,597

====== ====== ======

These financial statements were approved by the Board of Directors on 23 May 2012 and signed on its behalf by:




Statements of financial position at 31 December 2011 (cont’d)

Restated Restated

The Bank 2011 2010 1/1/10

Note GH¢’000 GH¢’000 GH¢’000

Assets

Cash and cash equivalents 16 433,430 346,212 136,829

Government securities 17 1,195,981 452,461 215,857

Advances to Banks 18 217,179 179,706 186,307

Loans and advances

to customers 19 476,211 995,356 1,265,517

Investment securities: available - for - sale 20 2,969 4,113 4,347

Investment in subsidiary 21 - - -

Investment in associates 36 16,126 3,876 3,876

Investment in other equity securities 22 64 64 64

Income tax asset 13 6,357 - -

Deferred tax asset 13 11,379 4,745 8,527

Property and equipment 23 53,955 54,684 51,345

Intangible assets 24 1,841 789 837

Other assets 25 39,072 34,355 25,508

------------ ------------ ------------

Total assets 2,454,564 2,076,361 1,899,014

====== ====== ======

Liabilities

Deposits from customers 26 2,061,390 1,584,055 1,259,470

Other liabilities 27 108,379 188,772 135,431

Borrowings 28 79,000 73,125 331,800

Income tax liabilities 13 - 23,450 6,525

Employee benefit obligations 29 36,322 33,336 31,350

------------ ------------ ------------

Total liabilities 2,285,091 1,902,738 1,764,576

====== ====== ======

Equity

Stated capital 30 72,000 72,000 72,000

Retained earnings 31 18,806 7,328 (8,845)

Fair value reserve 32 (332) 812 492

Statutory reserve 33 55,210 51,039 27,038

Credit risk reserve 34 24,631 42,147 43,753

Other reserves 35 (842) 297 -

---------- ---------- -----------

Total equity 169,473 173,623 134, 438

---------- ---------- -----------

Total liabilities and equity 2,454,564 2,076,361 1,899,014

====== ====== ======

These financial statements were approved by the Board of Directors on 23 May 2012 and signed on its behalf by:




for the year ended 31 december 2011statements of changes in equity

The Group Stated Retained Fair value Statutory Credit risk Other

capital earnings reserve reserve reserve reserves Total

GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000

Balance at 1 January

2010 - Restated 72,000 (5,086) 1,345 27,038 43,753 - 139,050

Total comprehensive

income for the year

Profit for the year - 50,880 - - - - 50,880

Other comprehensive

income, net of tax - - 307 - - 297 604

Total comprehensive ------ -------- ----- -------- ----- ----- ---------

income for the year - 50,880 307 - - 297 51,484

------ -------- ----- -------- ----- ----- ---------

Transactions with

equity holders

Dividends paid - (9,434) - - - - (9,434)

Total contributions to ------ ------- ----- ------- ----- ----- -------

equity holders - (9,434) - - - - (9,434)

------ ------- ----- ------- ----- ----- ------

Regulatory and

other reserves

Transfer to statutory

reserve - (24,001) - 24,001 - - -

Transfer from credit

risk reserve - 1,606 - - (1,606) - -

------ -------- ------ -------- ------- ----- ----

Net transfer to reserves - (22,395) - 24,001 (1,606) - -

Balance at -------- -------- ------- -------- ------- ----- ----------

1 December 2010 72,000 13,965 1,652 51,039 42,147 297 181,100

==== ==== ==== ==== ==== === =====



for the year ended 31 december 2011statements of changes in equity

The Group (cont’d) Stated Retained Fair value Statutory Credit risk Other


GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000

Balance at

1 January 2011 72,000 13,965 1,652 51,039 42,147 297 181,100

Total comprehensive

income for the year


Other comprehensive

income, net of tax - - (1,143) - - (1,139) (2,282)

Total comprehensive ------ -------- ------- -------- -------- -------- --------

income for the year - 17,972 (1,143) - - (1,139) 15,690

------ -------- ------- ------- ------- ------- --------

Transactions with

equity holders

Dividends paid - (18,550) - - - - (18,550)

Total contributions ------ -------- ----- ------ ---- ----- ---------

to equity holders - (18,550) - - - - (18,550)

------ -------- ----- ------- ----- ----- ---------Regulatory and

other reserves

Transfer to

statutory reserve - (4,171) - 4,171 - - -


risk reserve - 17,516 - - (17,516) - -

Net transfer from ------ -------- ----- ------ -------- ----- -----

reserves - 13,345 - 4,171 (17,516) - -

-------- -------- ---- -------- -------- ----- ----------

Balance at

31 December 2011 72,000 26,732 509 55,210 24,631 (842) 178,240

==== ==== === ==== ==== === =====


The Group Stated Retained Fair value Statutory Credit risk Other


GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000

Balance at 1 January

2010 - Restated 72,000 (5,086) 1,345 27,038 43,753 - 139,050

Total comprehensive

income for the year


Other comprehensive

income, net of tax - - 307 - - 297 604

Total comprehensive ------ -------- ----- -------- ----- ----- ---------


------ -------- ----- -------- ----- ----- ---------

Transactions with

equity holders

Dividends paid - (9,434) - - - - (9,434)

Total contributions to ------ ------- ----- ------- ----- ----- -------

equity holders - (9,434) - - - - (9,434)

------ ------- ----- ------- ----- ----- ------

Regulatory and

other reserves

Transfer to statutory

reserve - (24,001) - 24,001 - - -


risk reserve - 1,606 - - (1,606) - -

------ -------- ------ -------- ------- ----- ----

Net transfer to reserves - (22,395) - 24,001 (1,606) - -

Balance at -------- -------- ------- -------- ------- ----- ----------

1 December 2010 72,000 13,965 1,652 51,039 42,147 297 181,100

==== ==== ==== ==== ==== === =====


Statements of changes in equity for the year ended 31 December 2011 (cont’d)


The Bank Stated Retained Fair value Statutory Credit risk Other


GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000

Balance at

1 Jan 2010 - Restated 72,000 (8,845) 492 27,038 43,753 - 134,438

Total comprehensive

income for the year


Other comprehensive

income, net of tax - - 320 - - 297 617

Total comprehensive ------ -------- ----- ------ ----- ----- --------


------ -------- ----- ----- ----- ----- --------

Transactions with

equity holders

Dividends paid - (9,434) - - - - (9,434)

Total contributions to ------ -------- ----- ------ ----- ---- -------

equity holders - (9,434) - - - - (9,434)

------ -------- ----- ------ ----- ----- -------

Regulatory and

other reserves

Transfer to



risk reserve - 1,606 - - (1,606) - -

Net transfer ------ --------- ------ -------- -------- ----- ----

to reserves - (22,395) - 24,001 (1,606) - -

-------- -------- ------ -------- -------- ----- ----------

Balance at

31 December 2010 72,000 7,328 812 51,039 42,147 297 173,623

==== ==== === ==== ==== === =====




The Bank Stated Retained Fair value Statutory Credit risk Other


GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000

Balance at

1 Jan 2010 - Restated 72,000 (8,845) 492 27,038 43,753 - 134,438

Total comprehensive

income for the year


Other comprehensive

income, net of tax - - 320 - - 297 617

Total comprehensive ------ -------- ----- ------ ----- ----- --------


------ -------- ----- ----- ----- ----- --------

Transactions with

equity holders

Dividends paid - (9,434) - - - - (9,434)

Total contributions to ------ -------- ----- ------ ----- ---- -------

equity holders - (9,434) - - - - (9,434)

------ -------- ----- ------ ----- ----- -------

Regulatory and

other reserves

Transfer to



risk reserve - 1,606 - - (1,606) - -

Net transfer ------ --------- ------ -------- -------- ----- ----

to reserves - (22,395) - 24,001 (1,606) - -

-------- -------- ------ -------- -------- ----- ----------

Balance at

31 December 2010 72,000 7,328 812 51,039 42,147 297 173,623

==== ==== === ==== ==== === =====



The Bank (cont’d) Stated Retained Fair value Statutory Credit risk Other


GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000

Balance at 1

January 2011 72,000 7,328 812 51,039 42,147 297 173,623

Total comprehensive

income for the year


Other comprehensive

income, net of tax - - (1,144) - - (1,139) (2,283)

Total comprehensive ------ -------- ------- ------- ------ -------- --------

income for the year - 16,683 (1,144) - - (1,139) 14,400

------ -------- ------- ------- ------ ------- --------

Transactions with

equity holders

Dividends paid - (18,550) - - - - (18,550)

Total contributions to ----- -------- ------- ------- ------ -------- --------

equity holders - (18,550) - - - - (18,550)

------ ------- ----- ---- ----- ----- ---------

Regulatory and

other reserves

Transfer to



risk reserve - 17,516 - - (17,516) - -

Net transfer ------ -------- ----- -------- -------- ----- -----

from reserves - 13,345 - 4,171 (17,516) - -

-------- -------- ----- --------- --------- ----- ----------

Balance at

31 December 2011 72,000 18,806 (332) 55,210 24,631 (842) 169,473

==== ==== === ==== ==== === =====



statements of cash flowsfor the year ended 31 december 2011

The Group The Bank

Restated Restated

2011 2010 2011 2010

GH¢’000 GH¢’000 GH¢’000 GH¢’000

Cash flows from operating activities


Adjustments for :

Depreciation and amortization 12,300 11,504 12,300 11,504

Impairment charge on loans and advances 10,650 70,931 10,650 70,931

Net impairment loss on financial assets 3,105 554 1,615 554

Allowance for employee

benefit obligations 7,150 7,367 7,150 7,367

Share of profit of associates (4,321) (3,173) - -

Interest income (256,619) (389,096) (256,619) (389,096)

Interest expense 49,807 102,812 49,807 102,812

Dividend income (1,589) (1,455) (2,223) (1,526)

Assets written - off 129 - 129 -

Profit on sale of property

and equipment (51) (270) (51) (270)

---------- ---------- ---------- ----------

(148,360) (129,459) (147,561) (129,113)

Change in loans and advances

to customers 508,495 199,230 508,495 199,230

Change in advances to banks (39,088) 6,601 (39,088) 6,601

Change in other assets 14,808 (2,308) 14,791 (2,251)

Change in deposits from customers 477,335 324,585 477,335 324,585

Change in borrowings 5,875 (258,675) 5,875 (258,675)

Change in other liabilities (86,136) 42,737 (85,412) 42,663

Employee benefits paid (5,683) (4,985) (5,683) (4,985)

--------- --------- --------- ---------

727,246 177,726 728,752 178,055

Interest received 237,111 382,499 237,111 382,499

Interest paid (44,788) (92,134) (44,788) (92,134)

Income tax paid (49,168) (104) (49,059) -

--------- --------- --------- ---------

Net cash flow from operating activities 870, 401 467,987 872,016 468,420

--------- --------- --------- ---------


statements of cash flowsfor the year ended 31 december 2011

The Group The Bank

Restated Restated

2011 2010 2011 2010

GH¢’000 GH¢’000 GH¢’000 GH¢’000

Cash flows from investing activities

Government securities (743,521) (236,605) (743,520) (236,604)

Dividend received 1,589 1,455 2,223 1,526

Investment in equity securities (11,132) 1,373 (12,250) -

Acquisition of property

and equipment (11,041) (14,062) (11,041) (14,062)

Proceeds from sale of

property and equipment 55 326 55 326

Acquisition of intangible assets (1,715) (789) (1,715) (789)

--------- --------- --------- ---------

Net cash used in investing activities (765,765) (248,302) (766,248) (249,603)

====== ====== ====== ======

Cash flow from financing activities

Dividend paid (18,550) (9,434) (18,550) (9,434)

-------- -------- --------- --------

Net cash from financing activities (18,550) (9,434) (18,550) (9,434)

--------- -------- -------- --------

Net (decrease)/increase in

cash and cash equivalents 86,086 210,251 87,218 209,383

Cash and cash equivalents at 1 January 349,383 139,132 346,212 136,829

--------- --------- ---------- ----------

Cash and cash equivalents

At 31 December 435,469 349,383 433,430 346,212

===== ===== ===== ======



1. REPORTING ENTITY

Ghana Commercial Bank Limited is a limited liability company

incorporated and domiciled in Ghana. The address of its

registered office is Ghana Commercial Bank Building, Thorpe

Road, High Street, Accra. The financial statements as at and

for the year ended 31 December 2011 comprise the Bank

and its subsidiary, together referred to as the Group. The

Bank operates with a universal banking license. The Group’s

principal activities comprise consumer and corporate banking

and treasury activities. It also engages in equity investments

through its subsidiary.

The Bank is listed on the Ghana Stock Exchange.

The financial statements were authorized for issue by the

Board of Directors on 23 May 2012.

2. SUMMARY OF SIGNIFICANT ACCOUNTING

POLICIES

The principal accounting policies applied in the preparation of

these financial statements are set out below. These policies

have been consistently applied to all the years presented,

unless otherwise stated.

2.1 Basis of Presentation

The financial statements have been prepared in accordance

with International Financial Reporting Standards (IFRSs) as

issued by the International Accounting Standards Board.

Additional information required under the Companies Code,

1963 (Act 179) and Banking Act, 2004 (Act 673) as amended

by the Banking (Amendment) Act, 2007 (Act 738) have been

included, where appropriate. The financial statements have

been prepared under the historical cost convention, except

for :

• assets and liabilities held for trading measured at fair

value;

• investments in equity instruments measured at fair value;

• financial instruments designated at fair value through

profit and loss; and

• available-for-sale financial assets measured at fair value.

The financial statements comprise the statements of financial

position, statements of comprehensive income, changes in

equity and cash flows and notes to the financial statements.

The financial statements are presented in Ghanaian Cedis,

which is the Group’s functional and presentation currency.

Except otherwise indicated, financial information presented in

Ghanaian Cedis has been rounded to the nearest thousand.

Information on risks from financial instruments and financial

risk management policies are disclosed in Note 3.

The preparation of financial statements in conformity with

IFRS requires management to make judgments, estimates and

assumptions that affect the application of accounting policies

and reported amounts of assets, liabilities, income and expenses.

Actual results may differ from these estimates. Estimates and

underlying assumptions are reviewed on an ongoing basis.

Revisions to accounting estimates are recognized in the period

in which the estimate is revised, if the revision affects only that

period or in the period of revision and future periods, if the

revision affects both current and future periods.

Areas involving higher degree of judgment or complexity, or

where assumptions and estimates are considered significant to

the financial statements, are disclosed in Note 4.

notes to the financial statementsfor the year ended 31 december 2011


notes to the financial statements

2.2 Foreign currency translation

Transactions and balances

Transactions in foreign currencies are translated into the

functional currency using exchange rates prevailing at the

dates of the transactions.

Monetary assets and liabilities denominated in foreign

currencies are re-translated at closing rates ruling at the

reporting date. Non-monetary items that are measured in

terms of historical cost in a foreign currency are translated at

exchange rates ruling at the dates of initial recognition. Non-

monetary items denominated in a foreign currency that are

measured at fair value are translated at exchange rates ruling

at the date when fair value was determined.

Foreign exchange gains and losses resulting from the

settlement of foreign currency transactions and from re-

translation at year-end exchange rates of foreign currency

denominated monetary assets and liabilities are recognized

in profit or loss, except for differences on translation of equity

investments in respect of which an election has been made

to present subsequent changes in fair value and differences

arising on translation of available-for-sale equity investments

in other comprehensive income.

All foreign exchange gains and losses recognized in profit

or loss are presented net within the corresponding item.

Foreign exchange gains and losses on other comprehensive

income items are presented in other comprehensive income

within the corresponding item.

2.3 Interest income and expense

Interest income and expense are recognized in profit or loss

using the effective interest method.

The effective interest method is the rate that exactly

discounts estimated future cash payments or receipts

through the expected life of the financial instrument or, when

appropriate, a shorter period to the net carrying amount

of the financial asset or financial liability. When calculating

the effective interest rate, the Bank estimates cash flows

considering all contractual terms of the financial instrument,

including prepayment options, but does not consider future

credit losses. The calculation includes all transaction costs,

fees and points paid or received that are an integral part of

the effective interest rate.

Once a financial asset or a group of similar financial assets

has been written down as a result of an impairment loss,

interest income is recognized using the rate of interest used

to discount future cash flows for the purpose of measuring

the impairment loss.

2.4 Fee and commission income

Fees and commissions are recognized on an accrual basis

when the related services are performed. Loan commitment

fees for loans that are not likely to be drawn down are

deferred, together with related direct costs and recognized

on a straight line basis over the commitment period. Fees

and commission expenses, which relate mainly to transaction

and service fees, are expensed as the related services are

received.

2.5 Net trading income

Net trading income comprises gains less losses relating to

trading assets and liabilities, including realized and unrealized

fair value changes, interest and foreign exchange differences.

for the year ended 31 december 2011


2.6 Dividend income

Dividend income is recognized when the right to receive

income is established.

2.7 Leases

Leases under which the Bank assumes substantially all the risks

and rewards of ownership of the underlying asset are classified

as finance leases. Upon initial recognition, the leased asset is

measured at an amount equal to the lower of its fair value

and present value of minimum lease payments. Subsequent

to initial recognition, the leased asset is accounted for in

accordance with the accounting policy applicable to that asset.

All other leases are classified as operating leases.

Lease payments

Payments made under operating leases are charged to profit

or loss on a straight line basis over the period of the lease.

When an operating lease is terminated before the lease has

expired, any payment required to be made to the lessor by

way of penalty is recognized as an expense in the period in

which termination takes place.

Minimum lease payments under finance leases are apportioned

between finance expense and the outstanding lease liability.

The finance expense is allocated to each period so as to

produce a constant periodic rate of interest on the remaining

balance of the liability.

2.8 Financial assets and liabilities

All financial assets and liabilities are recognized in the statement

of financial position and measured in accordance with their

assigned category.

2.8.1 Financial assets

The Group classifies its financial assets in the following

categories: held to maturity, financial assets at fair value

through profit or loss, loans and receivables and available-for-

sale financial assets. Management determines the classification

of its financial assets at initial recognition.

(a) Held to maturity

Held to maturity assets are non-derivative assets with fixed

or determinable payments and fixed maturity that the Group

has the positive interest and ability to hold to maturity and

which are not designated at fair value through profit or loss or

available-for-sale.

Held to maturity assets are carried at amortized cost using

the effective interest method less any impairment losses.

Any sale or reclassification of a significant amount of held to

maturity asset not close to their maturity would result in the

reclassification of all held to maturity assets as available-for-

sale with the difference between amortized cost and fair value

being accounted for in other comprehensive income.

(b) Financial assets at fair value through profit and loss

This category comprises two sub-categories: financial assets

classified as held for trading and financial assets designated at

fair value through profit or loss upon initial recognition.

A financial asset is classified as held for trading if it is acquired or

incurred principally for the purpose of selling or repurchasing

in the near term or if part of a portfolio of identified financial

instruments that are managed together and for which there is

evidence of recent actual patterns of short-term profit-taking.

Derivatives are also categorized as held for trading unless they

are designated and effectively used as hedging instruments.

Financial assets held for trading consist of debt instruments,

including money-market paper, traded loans, equity instruments

and financial assets with embedded derivatives.

Financial instruments designated at fair value through profit or

loss are recognized initially at fair value. Transaction costs are

recognized directly in profit or loss. Gains and losses arising

from changes in fair value are recognized in profit or loss.

(c) Loans and receivables

Loans and receivables are non-derivative financial assets with

fixed or determinable payments that are not quoted in an

active market, other than:


(c) Loans and receivables (cont’d)

(i) those that the Bank intends to sell immediately or in

the short term, which are classified as held for trading

and those that upon initial recognition are designated at

fair value through profit or loss;

(ii) those that upon initial recognition are designated as

available-for-sale; or

(iii) those for which the holder may not recover

substantially all of the initial investment, other than

because of credit deterioration.

Loans and receivables are initially recognized at fair value which

is the cash consideration to originate or purchase the loan

including any transaction costs and measured subsequently

at amortized cost using the effective interest method. In the

case of an impairment, the impairment loss is reported as a

deduction from the carrying value of the loan and recognized

in profit and loss as ‘loan impairment charges’.

(d) Available-for-sale financial assets

Available-for-sale financial assets are financial assets that are

intended to be held for an indefinite period of time, which may

be sold in response to needs for liquidity or changes in interest

rates, exchange rates or equity prices that are not classified as

loans and receivables, held-to-maturity investments or financial

assets at fair value through profit or loss.

Available-for-sale financial assets are initially recognized at fair

value, which is the cash consideration including any transaction

costs, and measured subsequently at fair value with gains and

losses being recognized in other comprehensive income, except

for impairment losses and foreign exchange gains and losses,

until the financial asset is derecognized. If an available-for-sale

financial asset is determined to be impaired, the cumulative

gain or loss previously recognized in other comprehensive

income is recognized in profit and loss. Dividends on available-

for-sale equity instruments are recognized in profit and loss in

‘Dividend income’ when the Bank’s right to receive payment

is established.

2.8.2 Financial liabilities

Financial liabilities are held either at fair value through profit or

loss (including financial liabilities held for trading and those that

are designated at fair value), or at amortized cost.

(a) Financialliabilitiesatfairvaluethroughprofitorloss

This category comprises two sub-categories: financial liabilities

classified as held for trading and those designated at fair value

through profit or loss upon initial recognition.

A financial liability is classified as held for trading if it is acquired

or incurred principally for the purpose of selling or repurchasing

in the near term or if part of a portfolio of identified financial

instruments that are managed together and for which there is

evidence of recent actual patterns of short-term profit-taking.

Derivatives are also categorized as held for trading unless they

are designated and effectively held as hedging instruments.

Financial liabilities held for trading also include obligations

to deliver financial assets borrowed by a short seller. Those

financial instruments are recognized as ‘financial liabilities held

for trading’.

Gains and losses arising from changes in the fair value of

financial liabilities classified as held for trading are included in

profit and loss.

(b) Other liabilities measured at amortized cost

Financial liabilities that are not classified at fair value through

profit or loss fall into this category and are measured at

amortized cost. Financial liabilities measured at amortized

cost include deposits from related entities, customers or debt

securities in issue, convertible bonds and subordinated debts

for which the fair value option is not applied.

2.8.3 Determination of fair value

For financial instruments traded in active markets, the

determination of fair values of financial assets and financial

liabilities is based on quoted market prices or dealer price

quotations. This includes listed equity securities quoted on

Stock Exchanges.


Determination of fair value (cont’d)

A financial instrument is regarded as quoted in an active

market if quoted prices are readily and regularly available

from an exchange, dealer, broker, industry bank, pricing

service or regulatory agency, and those prices represent

actual and regularly occurring market transactions on an

arm’s length basis. If the above criteria are not met, the

market is regarded as being inactive. Indicators that a

market is inactive are when there is a wide bid-offer spread

or significant increase in the bid-offer spread or there are

few recent transactions.

For all other financial instruments, fair value is determined

using valuation techniques. In these techniques, fair values

are estimated from observable data in respect of similar

financial instruments, using models to estimate the present

value of expected future cash flows or other valuation

techniques, using inputs (for example, yield curve, foreign

exchange rates, and counterparty spreads) existing at the

reporting dates.

2.8.4 Recognition

The Bank recognizes financial assets and liabilities on the

trade date on which they are originated, when the Bank

becomes party to the contractual provisions of the

instrument.

2.8.5 De-recognition

Financial assets are derecognized when the contractual

rights to receive cash flows from the financial asset expire

or the Group transfers substantially all the risks and rewards

of ownership. Any interest in the transferred financial asset

that is created or retrieved is recognized as a separate

asset or liability. Financial liabilities are derecognized when

contractual obligations are discharged, cancelled or expire.

2.8.6 Reclassification of financial assets

The Group may choose to reclassify a non-derivative financial

asset held for trading out of the held - for - trading category,

if the financial asset is no longer held for the purpose of

selling in the near-term. Financial assets other than loans

and receivables are permitted to be reclassified out of the

held for trading category only in rare circumstances arising

from a single event that is unusual and highly unlikely to

recur in the near-term. In addition, the Group may choose

to reclassify financial assets that meet the definition of loans

and receivables out of the held-for-trading or available-for-

sale categories, if the Group has the intention and ability to

hold these financial assets for the foreseeable future or until

maturity at the date of reclassification.

Reclassifications are made at fair value as of the reclassification

date. Fair value becomes the new cost or amortized cost

as applicable, and no reversals of fair value gains or losses

recorded before reclassification date are subsequently

made. Effective interest rates for financial assets reclassified

to loans and receivables and held-to-maturity categories are

determined at the reclassification date. Further increases

in estimates of cash flows adjust effective interest rates

prospectively.

2.9 Impairment of financial assets

(a) Assets carried at amortized cost

The Group assesses whether there is objective evidence

that a financial asset or group of financial assets is impaired

at each reporting date. A financial asset or a group of

financial assets is considered impaired only if there is

objective evidence of impairment as a result of one or more

events that occurred after initial recognition of the asset (a

‘loss event’) and that loss event (or events) has an impact on

estimated future cash flows of the financial asset or group of

financial assets that can be reliably estimated.

The criteria used to determine whether there is objective

evidence of an impairment loss include:

(a) significant financial difficulty faced by the issuer or

obligor ;

(b) a breach in the form of default or delinquency in

interest or principal payments;

(c) granting the borrower, as a result of financial difficulty,

a concession that the lender would not otherwise

consider ;

(d) a likely probability that the borrower will enter

bankruptcy or other financial reorganization; and

(e) the disappearance of an active market for that

financial asset because of financial difficulties.


(a) Assets carried at amortized cost (cont’d)

The Bank assesses whether objective evidence of impairment

exists individually for financial assets that are individually

significant and individually or collectively for financial assets

that are not individually significant. If the Bank determines that

no objective evidence of impairment exists for an individually

assessed financial asset, whether significant or not, it includes

the asset in a group of financial assets with similar credit risk

characteristics and collectively assesses them for impairment.

Assets that are individually assessed for impairment and for

which an impairment loss is or continues to be recognized are

not included in a collective assessment of impairment.

The amount of loss is measured as the difference between the

asset’s carrying amount and the present value of estimated

future cash flows discounted at the financial asset’s original

effective interest rate. The carrying amount of the asset is

reduced through the use of an allowance account and the

amount of loss is recognized in profit or loss. If a loan or

held-to-maturity investment has a variable interest rate, the

discount rate for measuring any impairment loss is the current

effective interest rate determined under the contract.

The calculation of the present value of estimated future cash

flows of a collateralized financial asset reflects cash flows that

may result from foreclosure less costs for obtaining and selling

the collateral, whether or not foreclosure is probable.

For the purposes of a collective evaluation of impairment,

financial assets are grouped on the basis of similar credit risk

characteristics (that is, on the basis of the Group’s grading

process that considers asset type, industry, geographical

location, collateral type, past-due status and other relevant

factors). Those characteristics are relevant to the estimation of

future cash flows for groups of such assets by being indicative

of the debtors’ ability to pay all amounts due according to the

contractual terms of the assets being evaluated.

Future cash flows in groups of financial assets that are collectively

evaluated for impairment are estimated on the basis of the

contractual cash flows of assets in the group and historical loss

experience for assets with credit risk characteristics similar to

those in the group. Historical loss experience is adjusted on

the basis of current observable data to reflect the effects of

current conditions that did not affect the period on which

historical loss experience is based and to remove the effects of

conditions in the historical period that do not currently exist.

Estimates of changes in future cash flows for groups of assets

should reflect and be directionally consistent with changes

in related observable data from period to period including

property prices, payment status and other factors indicative

of changes in the probability of losses and their magnitude.

The methodology and assumptions used for estimating future

cash flows are reviewed regularly by the Group to reduce any

differences between loss estimates and actual loss experience.

When a loan is uncollectible, it is written off against the related

allowance for loan impairment. Such loans are written off after

all necessary procedures have been completed and the amount

of loss has been determined. Impairment charges relating to

loans and advances are recognized in loan impairment charges

whilst impairment charges relating to investment securities

(held to maturity and loans and receivables categories) are

recognized in ‘Net gains/(losses) on investment securities’.

If, in a subsequent period, the amount of the impairment loss

decreases and the decrease can objectively be related to an

event occurring after the impairment was recognized (such as

an improvement in the debtor’s credit rating), the previously

recognized impairment loss is reversed by adjusting the

allowance account. The amount of the reversal is recognized

in profit or loss.

(b) Assetsclassifiedasavailable-for-sale

The Bank assesses whether there is objective evidence that a

financial asset or a group of financial assets is impaired at each

reporting date. In the case of equity investments classified as

available for sale, a significant or prolonged decline in the fair

value of the security below its cost is objective evidence of

impairment resulting in the recognition of an impairment loss.

If any such evidence exists for available-for-sale financial assets,

the cumulative loss – measured as the difference between the

acquisition cost and the current fair value, less any impairment

loss on that financial asset previously recognized in profit or

loss – is removed from equity and recognized in profit or

loss. Impairment losses recognized in profit or loss on equity

instruments are not reversed through profit or loss. If, in a

subsequent period, the fair value of a debt instrument classified

as available for sale increases and the increase can objectively

be related to an event occurring after the impairment loss was

recognized in profit or loss, the impairment loss is reversed

through other comprehensive income.


(c) Renegotiated loans

Loans that are either subject to collective or individually

significant impairment assessment and whose terms have

been renegotiated are considered to be past due unless

renegotiated terms are adhered to and current repayments

suggest otherwise.

2.10 Impairment of non-financial assets

Intangible assets that have an indefinite useful life are not subject

to amortization and are tested annually for impairment. Assets

are reviewed for impairment whenever events or changes in

circumstances indicate that the carrying amount may not be

recoverable. An impairment loss is recognized for the amount

by which the asset’s carrying amount exceeds its recoverable

amount. The recoverable amount is the asset’s fair value less

costs to sell. For the purposes of assessing impairment, assets

are grouped at the lowest levels for which there are separately

identifiable cash flows (cash-generating units). The impairment

test can also be performed on a single asset when the fair

value less cost to sell can be reliably determined. Non-financial

assets that suffer impairment are reviewed for possible reversal

of the impairment at each reporting date.

2.11 Offsetting financial instruments

Financial assets and liabilities are offset and the net amount

reported when there is a legally enforceable right to offset the

recognized amounts and there is an intention to settle on a net

basis or realize the asset and settle the liability simultaneously.

2.12 Cash and cash equivalents

Cash and cash equivalents comprise balances with less than

three months’ maturity from the date of acquisition, including

cash on hand, deposits held at call and other short-term highly

liquid investments with original maturities of three months or

less.

2.13 Investment securities

Investment securities are initially measured at fair value

plus incremental direct transaction costs and subsequently

accounted for depending on their classification as held to

maturity or available-for-sale.

2.14 Property and equipment

Items of property and equipment are stated at cost less

depreciation and impairment losses. Cost includes expenditure

that is directly attributable to the acquisition of the items.

Subsequent expenditures are included in the asset’s carrying

amount or are recognized as a separate asset only when it is

probable that future economic benefits associated with the

item will flow to the Group and the cost of the item can

reliably be measured. The carrying amount of a replaced part

is derecognized. All other repair and maintenance costs are

charged to profit or loss during the financial period in which

they are incurred.

Depreciation is recognized in profit or loss on a straight line

basis to write off the cost less residual amounts over their

estimated useful lives as follows:

Leasehold land - Over the lease term

Computer hardware

and equipment - 33.33%

Motor vehicles - 25%

Furniture and fittings - 25%

Buildings - 2%

The assets’ residual values and useful lives are reviewed, and

adjusted if appropriate, at the end of each reporting period.

Assets are reviewed for impairment whenever events or

changes in circumstances indicate that the carrying amount

may not be recoverable.

An asset’s carrying amount is written down immediately to its

recoverable amount if the asset’s carrying amount is greater

than its estimated recoverable amount. The recoverable

amount is the asset’s fair value less costs to sell. Gains and

losses on disposal are determined by comparing proceeds

with carrying amounts and are recorded in profit or loss.


2.15 Intangible assets

Computer software

Intangible assets comprise computer software licenses.

Intangible assets are recognized at cost. Intangible assets

with a definite useful life are amortized using the straight-line

method over their estimated useful economic life, generally

not exceeding 3 years. Intangible assets with indefinite useful

lives are not amortized. At the end of each reporting period,

intangible assets are reviewed for indications of impairment

or changes in estimated future economic benefits. If such

indications exist, the intangible assets are analyzed to assess

whether their carrying amount is fully recoverable. An

impairment loss is recognized if the carrying amount exceeds

the recoverable amount.

2.16 Provisions

Provisions are recognized when the Bank has a present legal

or constructive obligation as a result of past events that can

be reliably estimated and it is probable that an outflow of

resources will be required to settle the obligation. Provisions

are not recognized for future operating losses.

Where there are a number of similar obligations which

are likely to result in an outflow to settle related classes

of obligations as a whole, a provision is recognized even if

the likelihood of an outflow with respect to any one item

included in the same class of obligations may be small.

Provisions are measured at the present value of expenditures

expected to be required to settle obligations using pre-tax

rates that reflect current market assessments of the time

value of money and risks specific to the obligation.

2.17 Income tax

(a) Current income tax

The tax expense for the period comprises current and

deferred tax. The current tax charge is calculated on the

basis of tax laws enacted or substantially enacted at the

reporting date and any adjustments to tax payable in respect

of previous years.

(b) Deferred tax

Deferred tax is recognized, using the liability method, on

temporary differences arising between the tax bases of

assets and liabilities and their carrying amounts in the financial

statements. Deferred tax liabilities are not recognized if

they arise from the initial recognition of goodwill or from

the initial recognition of an asset or liability in a transaction

other than a business combination that at the time of the

transaction neither affects accounting nor taxable profit or

loss. Deferred tax is determined using tax rates that have

been enacted or substantially enacted by the reporting date

and are expected to apply when the related deferred tax

asset or liability is realized.

Deferred tax assets are recognized only to the extent that it

is probable that future taxable profits will be available against

which the temporary differences can be utilized. Deferred

tax assets are reviewed at each reporting date and are

reduced to the extent that it is no longer probable that the

related tax benefit will be realized.

2.18 Financial guarantee contracts

Financial guarantee contracts are contracts that require the

issuer to make specified payments to reimburse the holder

for a loss it incurs because a specified debtor fails to make

payments when due, in accordance with the terms of a debt

instrument.

Financial guarantees are initially recognized at fair value

and amortized over the life of the financial guarantee. The

financial guarantee is subsequently carried at the higher of

the amortized amount and the present value of any expected

payments, when payment becomes probable.

2.19 Stated capital and reserves

Share capital

The Bank classifies capital and equity instruments in

accordance with the contractual terms of the instrument.

The Bank’s share capital is not redeemable by holders in

the normal course of business and bears an entitlement to

distributions that is non-cumulative and at the discretion


2.19 Stated capital and reserves (cont’d)

of the Directors. Accordingly, they are presented as a

component of issued capital within equity.

Dividends on ordinary shares are recognized in the period

in which they are approved by the shareholders. Dividend

proposed which is yet to be approved by shareholders, is

disclosed by way of notes.

Statutory reserves

Statutory reserves are based on the requirements of section

29(i) of the Banking Act. Transfers into statutory reserves

are made in accordance with the relationship between the

Bank’s reserve fund and its paid up capital, which determines

the proportion of profits for the period that should be

transferred.

Credit risk reserves

This is a reserve created to set aside the excess or shortfalls

between amounts recognized as impairment loss on loans

and advances based on provisions made for bad and doubtful

loans and advances calculated in accordance with IFRSs and

the Central Bank’s prudential guidelines.

2.20 Fiduciary activities

The Group acts as trustees and in other fiduciary capacities

that result in the holding or placing of assets on behalf

of individuals, trusts, retirement benefit plans and other

institutions. These assets and income arising thereon are

excluded from these financial statements, as they are not

assets of the Group.

2.21 Consolidation

The financial statements of the subsidiary used to prepare

the consolidated financial statements were prepared as of

the parent company’s reporting date. The consolidation

principles are unchanged as against the previous year.

(a) Subsidiaries

Subsidiaries are entities controlled by the Bank and include

all entities over which the Bank has power to govern the

financial and operating policies to obtain benefits from their

activities. The existence and effect of potential voting rights

that are currently excisable or convertible are considered

when assessing whether the Bank controls another entity.

Subsidiaries are fully consolidated from the date on which

control is transferred to the Bank. They are deconsolidated

from the date on which control ceases.

Inter-company balances, income and expenses and unrealized

gains and losses arising from transactions are eliminated in

preparing consolidated financial statements, but, losses are

also eliminated only to the extent that there is no evidence

of impairment.

(b) Associates

Associates are all entities over which the Bank has significant

influence but not control, generally accompanying a

shareholding of between 20% and 50% of voting rights.

Investments in associates are accounted for using the equity

method of accounting and are initially recognized at cost.

2.22 Post balance sheet events

Events subsequent to the balance sheet date are reflected in

the financial statements only to the extent that they relate to

the year under consideration and the effect is material.

2.23 Employment benefits

Definedcontributionplans

Obligations for contributions to defined contribution

pension plans are recognized as an expense in profit or loss

when they are due.

Short-term benefits

Short-term employee benefit obligations are measured

on an undiscounted basis and are expensed as the related

service is provided. A provision is recognized for the


2.23 Employment benefits (cont’d)

amount expected to be paid under short-term cash bonus

or profit sharing plans, if the Bank has a present legal or

constructive obligation to pay this amount as a result of past

service provided by the employee and the obligation can be

estimated reliably.

Other long-term employment benefits – Long service award

Long service awards accrue to employees based on graduated

periods of uninterrupted service. These awards accrue over

the service life of employees. Provision for long service

awards is made based on independent actuarial valuation

done using the projected unit credit basis. Actuarial gains or

losses arising are charged to other comprehensive income.

Employees leaving the service of the Bank after twenty-

five (25) years through retirement (both voluntary and

compulsory) become eligible for cash payments equivalent

to their current entitlement at the time of retirement less

entitlements previously paid based on their length of service.

Provident Fund

The Bank has a Provident Fund Scheme for all employees

who have completed their probation period with the Bank.

Employees contribute 10% of their basic salary to the Fund

whilst the Bank contributes 12.5%. Obligations under the

plan are limited to the relevant contributions, which are

settled on due dates to the fund manager.

Post Retirement Medical Care

The Bank is committed to paying post retirement medical

care of the Bank’s staff. All payments made under this

commitment are charged to the income statement as

incurred in accordance with the rules of the scheme.

Termination Benefits

The Bank recognizes termination benefits when it is

demonstrably committed to either terminating the

employment of current employees according to a detailed

formal plan; or providing termination benefits as a result of

an offer made to encourage voluntary redundancy.

Pension Benefits

The Bank pays monthly pension benefits to retired employees,

under a closed defined benefit pension scheme. Under this

scheme, beneficiaries are paid pensions equal to 60% of the

net basic salaries of their serving counterparts. The scheme

has been discontinued since 1985 and at the reporting date

covered a closed group of 438 persons, who still receive

monthly pensions. The monthly pensions are increased

annually in line with adjustments to the basic salaries of their

serving counterparts.


2.24 New standards and interpretations not yet adopted

There are new or revised Accounting Standards and Interpretations in issue that are not yet effective. These include the following

Standards and Interpretations that may have an impact on future financial statements:

Amendment to IAS 1 Presentation of Financial Statements

The amendment to IAS 1 will be adopted for the first time for the financial reporting period ending 31 December 2013.

Standard/Interpretation Effective date

IAS 1 amendment Presentation of Financial Statements: Presentation of Items

of Other Comprehensive Income

Annual periods beginning on or after 1 July 2012

IAS 27 Separate Financial Statements (2011) Annual periods beginning on or after 1 January 2013

IAS 28 Investments in Associates and Joint Ventures (2011) Annual periods beginning on or after 1 January 2013

IFRS 7 amendment Disclosures – Transfers of Financial Assets Annual periods beginning on or after 1 July 2011

IFRS 9 (2009) Financial Instruments Annual periods beginning on or after 1 January 2015

IFRS 9 (2010) Financial Instruments Annual periods beginning on or after 1 January 2015

IFRS 10 Consolidated Financial Statements Annual periods beginning on or after 1 January 2013

IFRS 12 Disclosure of Interests in Other Entities Annual periods beginning on or after 1 January 2013

IFRS 13 Fair Value Measurement Annual periods beginning on or after 1 January 2013

The Bank will present those items of other comprehensive

income that may be reclassified to profit or loss in the future

separately from those that would never be reclassified to profit

or loss. The related tax effects for the two sub-categories will

be shown separately.

This is a change in presentation and will have no impact on

the recognition or measurement of items in the financial

statements.

This amendment will be applied retrospectively and

comparative information will be restated.

IAS 27 (2011) Separate Financial Statements

IAS 27 (2011) will be adopted for the first time for the financial

reporting period ending 31 December 2013.

IAS 27 (2011) supersedes IAS 27 (2008) and carries forward

the existing accounting and disclosure requirements for

separate financial statements, with some minor clarifications.

This amendment will not have a significant impact on the

Bank’s separate financial statements.

IAS 28 (2011) Investments in Associates and Joint Ventures

IAS 28 (2011) will be adopted for the first time for the financial


IAS 28 (2011) supersedes IAS 28 (2008) and carries forward

the existing accounting and disclosure requirements with

limited amendments. These include:


IAS 28 (2011) Investments in Associates and Joint Ventures

(cont’d)

• IFRS 5 which is applicable to an investment, or a

portion of an investment, in an associate or a joint

venture that meets the criteria to be classified as

held-for-sale; and

• On cessation of significant influence or joint control,

even if an investment in an associate becomes

an investment in a joint venture or vice

versa, the retained interest should not be re-

measured.


Bank’s financial statements.

Amendments to IFRS 7 Financial Instruments: Disclosures

The amendments to IFRS 7 will be adopted for the first time

for the financial reporting period ending 31 December 2012.

In terms of the amendments additional disclosure will be

provided regarding transfers of financial assets that are:

• not derecognized in their entirety; and

• derecognized in their entirety but for which the Bank

retains continuing involvement.



IFRS 9 (2009) Financial Instruments

IFRS 9 will be adopted for the first time for the financial

reporting period ending 31 December 2015. The standard

will be applied retrospectively, subject to transitional

provisions.

IFRS 9 addresses the initial measurement and classification

of financial assets and will replace the relevant sections of

IAS 39.

Under IFRS 9 there are two options in respect of classification

of financial assets, namely, financial assets measured at

amortized cost or at fair value. Financial assets are measured

at amortized cost when the business model is to hold assets

in order to collect contractual cash flows and when they

give rise to cash flows that are solely payments of principal

and interest on the principal outstanding. All other financial

assets are measured at fair value. Embedded derivatives

are no longer separated from hybrid contracts that have a

financial asset host.



IFRS 9 (2010) Financial Instruments

IFRS 9 (2010) will be adopted for the first time for the

financial reporting period ending 31 December 2015. The

standard will be applied retrospectively, subject to transitional

provisions.

IFRS 9 (2010) addresses the measurement and classification

of financial liabilities and will replace the relevant sections of

IAS 39.

Under IFRS 9 (2010), the classification and measurement

requirements of financial liabilities are the same as per IAS

39, except for the following two aspects:

• fair value changes for financial liabilities (other

than financial guarantees and loan commitments)

designated at fair value through profit or loss, that

are attributable to changes in the credit risk of

the liability will be presented in other comprehen-

sive income (OCI). The remaining amount of fair

value change is recognised in profit or loss.

However, if this requirement creates or enlarges

an accounting mismatch in profit or loss, then

the whole fair value change is presented in profit or

loss. The determination as to whether such presenta-

tion would create or enlarge an accounting mismatch

is made on initial recognition and is not subsequently

reassessed.

• Under IFRS 9 (2010) derivative liabilities that are

linked to and must be settled by delivery of an

unquoted equity instrument whose fair value cannot

be reliably measured, are measured at fair value.


IFRS 9 (2010) Financial Instruments (cont’d)

IFRS 9 (2010) incorporates guidance in IAS 39 dealing with fair

value measurement and accounting for derivatives embedded

in a host contract that is not a financial asset, as well as the

requirements of IFRIC 9 Reassessment of Embedded Derivatives.



IFRS 10 Consolidated Financial Statements


reporting period ending 31 December 2013. The standard

may be applied retrospectively. IFRS 10 introduces a single

control model to assess whether an investee should be

consolidated. This control model requires entities to perform

the following in determining whether control exists:

• Identify how decisions about relevant activities are made;

• Assess whether the entity has power over relevant

activities by considering only the entity’s substantive

rights;

• Assess whether the entity is exposed to variability in

returns, and

• Assess whether the entity is able to use its power over

the investee to affect returns for its own benefit.

Control should be assessed on a continuous basis and should

be reassessed as facts and circumstances change.



IFRS 12 Disclosure of Interests in Other Entities



IFRS 12 combines, in a single standard, disclosure requirements

for subsidiaries, associates and joint arrangements, as well as

unconsolidated structured entities.

The required disclosures aim to provide information to enable

users evaluate:

• The nature of, and risks associated with, an entity’s

interests in other entities, and

• The effects of those interests on the entity’s financial

position, financial performance and cash flows.

The adoption of this standard will increase the level of disclosure

provided for interests in subsidiaries, joint arrangements,

associates and structured entities.

IFRS 13 Fair Value Measurement


reporting period ending 31 December 2013. The standard will

be applied prospectively and comparatives will not be restated.

IFRS 13 introduces a single source of guidance on fair value

measurement for both financial and non-financial assets and

liabilities by defining fair value, establishing a framework for

measuring fair value and setting out disclosure requirements

for fair value measurements. The key principles in IFRS 13 are

as follows:

• Fair value is an exit price;

• Measurement considers characteristics of the asset or

liability and not entity-specific characteristics;

• Measurement assumes a transaction in the entity’s

principle (or most advantageous) market between

market participants;

• Measurement maximizes the use of relevant

observable inputs and minimizes the use of

unobservable inputs

• Price is not adjusted for transaction costs; and

• The three-level fair value hierarchy is extended to all

fair value measurements.

This amendment of IFRS 13 will not have an impact on the


2.25 Earnings per share

The Bank presents basic and diluted earnings per share (EPS)

data for its ordinary shares. Basic EPS is calculated by dividing

the profit or loss attributable to ordinary shareholders by the

number of ordinary shares outstanding during the period. The

Bank has no convertible notes and share options, which could

potentially dilute its EPS and therefore the Bank’s Basic and

diluted EPS are essentially the same.


2.26 Comparatives

Except when a standard or an interpretation permits or

requires otherwise, all amounts are reported or disclosed with

comparative information. Comparative figures have been

adjusted to conform to changes in presentation in the current

year.

3. FINANCIAL RISK MANAGEMENT

The Bank’s activities expose the business to risks. These risks

are managed professionally and in a targeted manner. Key risks

arising from core functions are identified and measured to

facilitate managing and determining risk positions and capital

allocations. The Bank has exposure to the following types of

risks from its use of financial instruments:

• Credit Risk

• Liquidity Risk

• Market Risk

• Operational Risk

The Bank continues to assess and is in the process of

enhancing its overall risk management framework and

governance structure. Changes to regulations in the banking

sector reinforce the Bank’s commitment to embed enhanced

risk based cultures throughout the organization. Guidelines

to Risk management and the Basel II regulations will become

the minimum requirements that need to be met to ensure

effective risk management practices. The Bank is in the process

of upgrading its risk management processes and governance

structures to ensure they favorably compare to those of

leading international banks.

Risk management framework

The Board of Directors has overall responsibility for the

establishment and oversight of the Bank’s risk management

framework. The Risk Management Division (RMD) and Credit

Committee are responsible for developing and monitoring the

Bank’s risk management policies over specified areas. These

committees report regularly to the Board on their activities

through the Executive Management Committee.

The Bank’s aim is to achieve an appropriate balance between

risk and return and minimize potential adverse effects on the

Bank’s financial performance. The Bank defines risk as the

possibility of losses or profits foregone, which may be caused

by internal or external factors.

The Bank’s risk management policies are established to identify

and analyze risks faced by the Bank, set appropriate risks limits

and controls and monitor risks and adherence to established

policies. Risk management policies and systems are reviewed

regularly to reflect changes in market conditions, products and

services offered. Through training and setting of standards

and procedures, the Bank has developed a disciplined

and reasonably effective control environment in which all

employees understand their roles and obligations.

The Bank’s Board Audit and Compliance Committee is

responsible for monitoring compliance with the Bank’s risk

management policies and procedures, and for reviewing the

adequacy of the risk management framework in relation

to risks faced by the Bank. The committee is assisted in its

functions by a Risk Management Structure, which ensures

a consistent assessment of risk management controls and

procedures.

In line with planned changes, the Board and Board Committee

structures and mandates are being reviewed and revised to

encourage a culture of effective accountability and responsibility.

The Bank’s risk management function is currently under-going

review. The proposed changes to regulations in the banking

sector reinforce the Bank’s commitment to embed a risk

based culture throughout the organization. The Bank is in the

process of redefining its overall risk framework.


Financial risk management (cont’d)

The Directors of the Bank understand they are ultimately

responsible for ensuring that risk management is properly

and adequately enforced throughout the organization and are

committed to managing risks based on the levels of exposure

they present. Planned changes include the following:

A clear Risk Appetite and Risk Appetite Statement

The Bank’s Risk Appetite Statement is currently being refined

and a quantification methodology will be applied after which

it will be formally presented to the Board for approval. This

process is essential as it will form the basis for all risk taking

decisions within the organization and, consequently, govern the

quantum of risk taken.

Risks Identification

The major risks identified are (not in order of priority):

- Credit

- Country & Cross Border

- Concentration

- Market

- Liquidity and Funding

• Capital

• Operational

• Legal/Regulatory

• Accounting/Taxation

• Information Technology

• Compliance

• People

• Business/Strategic

• Investment

• Reputational

• Any other

Identifying the inherent risks in the Bank’s business facilitates

appropriate mapping of those risks to appropriate responsible

structures which in turn quantifies, manages, controls and

reports and (where necessary) defines measures to mitigate

those risks.

Board and Board Committees

Board and Board Committee structures and mandates have

been reviewed and revised in line with the Risk Management

framework to encourage a culture of effective accountability

and responsibility. This includes the proposed formation of a

Risk and Capital Management Committee which will oversee

the risk management framework and reporting structures

within the Bank. An added responsibility of this committee will

be management of the Bank’s capital in a pro active manner

given current and future business strategies.

Operational Committees

Operational committee structures, composition and mandates

have been reviewed. A new committee structure is in the

process of being implemented. The structure takes into

account the risks identified and delegation of responsibility

of those risks to appropriate bodies. The committees in turn

report to the Board, thus again ensuring that risk information is

ultimately fed to the Board.

Credit risk management

Credit risk is the risk of financial loss to the Bank if a customer

or a counter party to a financial instrument fails to meet its

contractual obligations, and arises principally from loans and

advances to customers and other banks, investment securities,

financial guarantees, letters of credit, endorsements and

acceptances.

Credit Committees have responsibility for credit risk issues.

Procedures for managing credit risk are followed at business

levels in accordance with specific policies and procedures that

have been adapted based on risk environments and business

goals. The business units working with the Risk Management

Division are responsible for managing pricing for risks, portfolio

diversification and overall asset quality. Credit risk is the single

largest risk for the Bank’s business; Management carefully

manages its exposure to credit risk.

Credit Portfolio Management and Provisioning

SME, Corporate and Consumer Banking

SME, Corporate and Consumer Banking accounts are placed

on early alert status when they display signs of weakness. Such

accounts and portfolios are subject to dedicated processes of

oversight involving Senior Risk Officers and Remedial Officers

in the Loans Recovery Unit. Customer payment plans are re-

evaluated and remedial actions agreed and monitored until

The Directors

The Directors


Credit risk management (cont’d)

delinquency situations are resolved. Remedial actions include,

but not limited to, exposure reduction, security enhancement

and movement of the account to the Loans Recovery Unit.

Loans are designated as impaired and considered non-

performing when weaknesses highlighted indicate that full

payment of interest or principal may become questionable.

Impaired accounts are managed by the Loans Recovery Unit.

Where any amount is considered uncollectible, an individual

impairment provision is made, being the difference between the

loan carrying amount and the present value of estimated future

cash flows. In any decision relating to provisioning, the Bank

attempts to balance economic conditions, local knowledge and

experience and results of independent asset reviews. Where

it is considered that there is no realistic prospect of recovering

an account against which an impairment provision has been

made, the amount is written off.

An account is considered to be in default when payment is

not received on due date. Accounts that are overdue by more

than 90 days are considered delinquent. These accounts are

closely monitored and subjected to a collection process. The

process used for provisioning is dependent on the product.

For unsecured products, individual provisions are made for the

outstanding amount depending on the number of days past due

with full provisions made after 360 days. In certain situations

such as bankruptcy, fraud and death, the loss recognition

process is accelerated. Loans and advances less than 90 days

past due are not considered impaired unless other information

is available to indicate otherwise.

3.1 Maximum exposure to credit risk before collateral held

Credit risk exposures relating to on-balance sheet assets are as follows:

Restated

2011 2010

GH¢’000 GH¢’000

Cash and cash equivalents 375,774 309,641

Government securities 1,196,910 453,389

Advances to Banks 217,179 179,706

Loans and advances to customers:

Individual 246,240 176,254

Corporate 364,950 943,431

Investment securities – available for sale 4,562 4,161

----------- -----------

2,405,615 2,066,582

====== ======

Credit risk exposures relating to off-balance sheet

items are as follows:

Financial guarantees 209,836 204,308

Loan commitments and other credit related liabilities 15,822 -

--------- ---------

225,658 204,308

---------- ----------

At 31 December 2, 631,273 2, 270,890

======= ======

The Directors

The Directors


3.1 Maximum exposure to credit risk before collateral held (cont’d)

The above represents the maximum exposure to credit risk at 31 December 2011 and 2010, without taking account of any

collateral held or other credit enhancements attached. For on-balance-sheet assets, the exposures set out above are based on

gross carrying amounts reported.

As shown above, 31% of the total maximum exposure is derived from loans and advances to banks and customers (2010: 57%),

investment held in government securities represents 45% (2010: 20%).

Management is confident in its ability to continue controlling and sustaining minimal exposure to credit risk arising from both its

loans and advances portfolio and investment securities.

3.2 Loans and advances

(a) Loans and advances are summarised as follows:

2011 2010

Loans & Loans & Loans & Loans &

advances advances advances advances

to Banks to customers to Banks to customers

GH¢’000 GH¢’000 GH¢’000 GH¢’000

Neither past due or impaired 217,179 449,049 179, 706 934,602

Past due but not impaired - 17,340 - 38,290

Individually impaired - 144,801 - 146,793

----------- ----------- ----------- -----------

Gross 217,179 611,190 179,706 1,119,685

Less: allowance for impairment - (134,979) - (124,329)

----------- ----------- ----------- -----------

Net 217,179 476,211 179,706 995,356

====== ===== ===== =====

(b) Loans and advances neither past due nor impaired

The credit quality of the portfolio of loans and advances to customers that were neither past due nor impaired is assessed by reference to

the internal rating system adopted by the Bank. Loans graded as current loans are not considered past due nor impaired.

Loans and advances to customers

At 31 December 2011

Individual Corporate

Overdrafts Term loans Overdrafts Term loans Total

GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000

Grades

Current 162 216,240 66,612 145,646 428,660

=== ===== ==== ===== =====

At 31 December 2010

Grades

Current 217 151,033 636,513 137,642 925,405

=== ===== ===== ===== =====


(c) Loans and advances past due but not impaired

Loans and advances less than 90 days past due are not considered impaired, unless other information is available to indicate the

contrary. Gross amount of loans and advances by class to customers that were past due but not impaired were as follows:

At 31 December 2011



GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000

Past due up to 30 days - - - - -

Past due 30-60 days 15 17,388 2,175 811 20,389

Past due 60-90 days 262 11,269 1,660 4,149 17,340

------ ---------- ---------- ----------- ---------

277 28,657 3,835 4,960 37,729

=== ==== ==== ==== ====

Fair value of collateral - - 1,093 7,421 8,514

=== ==== ==== ==== ====

At 31 December 2010

Past due up to 30 days - - - - -

Past due 30-60 days 24 8,411 697 65 9,197

Past due 60-90 days 339 15,398 4,311 18,242 38,290

------ ---------- ------- --------- ---------

363 23,809 5,008 18,307 47,487

=== ==== ==== ==== ====


=== ==== ==== ==== ====

(d) Loans and advances individually impaired

A breakdown of the gross amount of individually impaired loans and advances by class, along with the fair value of related collateral

held by the Bank as security, is as follows:

At 31 December 2011



GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000

Individual impaired loans 99 805 87,989 55,908 144,801

== === ==== ==== =====

Impairment allowance 99 805 83,701 46,225 130,830

== === ==== ==== =====


== === ==== ==== =====


(d) Loans and advances individually impaired (cont’d)

At 31 December 2010



GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000

Individual impaired loans 99 733 84,795 61,166 146,793

== === ==== ==== =====

Impairment allowance 99 733 79,065 42,123 122,020

== === ==== ==== =====


== === ==== ==== =====

(e) Loans and advances renegotiated

Restructuring activities include extended payment arrangements, approved externalmanagement plans,modification and deferral of

payments. Restructuring policies and practices are based on indicators or criteria which, in the judgment of management, indicate that

payment will most likely continue. These policies are kept under continuous review. Restructuring is most commonly applied to term loans.

Loans and advances to customers

2011 2010

GH¢’000 GH’000

Continuing to be impaired after restructuring

(included in non-performing loans) 14,010 14,811

Non-impaired after restructuring – would otherwise have been impaired - -

==== ====

(f) Acquired interest in property in satisfaction of debt

During the year, the Bank took possession of the following collateral held as security:

2011 2010

Related Related

Collateral loan Collateral loan

GH¢’000 GH¢’000 GH¢’000 GH¢’000

Carrying amount

Nature of assets

Commercial property 4,674 2,133 4,674 2,108

Vehicles and equipment 8,237 7,891 7,930 7,770

-------- -------- -------- -------

12,911 10,024 12,604 9,878

==== ==== ==== ====


(f) Acquired interest in property in satisfaction of debt (cont’d)

Repossessed items are expected to be sold within one year of repossession. Proceeds from sale are used to reduce related

outstanding indebtedness.

3.3 Liquidity risk

The Bank defines liquidity risks as the risk that the Bank will encounter difficulty meeting obligations associated with financial liabilities

that are settled by delivering cash or other financial assets. It is the policy of the Bank to maintain adequate liquidity at all times. The

Bank aims to be in a position to meet all obligations, repay depositors, fulfill commitments to lend and meet any other commitments.

Liquidity risk is managed by the Bank’s Assets and Liability Management Committee (ALCO), which is chaired by an Executive

Director. ALCO is responsible for both statutory and prudential liquidity. These responsibilities include setting limits of authority.

ALCO has primary responsibility for compliance with regulations, the Bank’s policies and maintaining contingency plans.

A substantial portion of the Bank’s assets are funded by customer deposits made up of current and savings accounts and other

deposits. These customer deposits, which are widely diversified by type and maturity, represent a stable source of surplus funds.

Lending is normally funded by liability in the same currency. The Bank also maintains significant levels of marketable securities to

meet compliance with prudential investment of surplus funds.

ALCO oversees structural foreign currency and interest rate exposures that arise within the Bank. These responsibilities are

coordinated by ALCO during monthly meetings.

The table below presents cash flows payable under non-derivative financial liabilities and assets held for managing liquidity risk by

remaining contractual maturities at the reporting date adjusted to reflect behavioral character of deposits. The amounts disclosed

in the table are the contractual undiscounted cash flows, whereas the Bank manages liquidity risk taking into account the behavioral

characteristics of deposits.


At 31 December 2011

Up to 1 1-3 3-12 Over

month months months 1 year Total

GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000

Liabilities

Deposits due to customers 1,868,339 92,180 100,871 - 2,061,390

Other liabilities - 11,126 16,749 80,550 108,425

Borrowings - - - 79,000 79,000

------------ --------- ------------ ---------- ------------

1,868,339 103,306 117,620 159,550 2,248,815

====== ===== ===== ===== ======

Assets

Cash and cash equivalents 435,469 - - - 435,469

Advances to Banks 212,273 4,406 500 - 217,179

Investment in government securities 25,591 309,683 646,936 214,700 1,196,910

Loans and advances to customers 65,762 200,966 130,284 79,199 476,211

Investment securities – available for sale - - - 4,562 4,562

Investments in other equity securities - - - 198 198

Other assets - 25,235 3,889 10,000 39,124

------------ ------------ ------------ ------------ ------------

Assets held for managing liquidity risk 739,095 540,290 781,609 308,659 2,369,653

===== ===== ===== ===== ======

Liquidity gap (1,129,244) 436,984 663,989 149,109 120,838

======= ===== ===== ===== =====

At 31 December 2010 - Restated

Total liabilities 1,211,102 166,198 236,698 266,060 1,880,058

====== ===== ===== ===== ======

Total assets 525,097 730,179 531,780 230,225 2,017,281

===== ===== ===== ===== ======

Liquidity gap (686,005) 563,981 295,082 (35,835) 137,223

====== ===== ====== ===== =====


Market Risk

Management of Market Risk

The Bank recognizes market risk as the exposure created by potential changes in market prices and rates, such as interest rates,

equity prices and foreign exchange rates. The Bank’s exposure to market risk arises principally from customer driven transactions.

Market risk oversight is performed by the ALCO in line with agreed policies, procedures and levels of risk appetite.

Foreign Exchange Exposure

The Bank’s foreign exchange exposure comprises of trading and non-trading foreign currency exposures. Foreign exchange

exposures are principally derived from customer driven transactions. The table below summarizes the Bank’s exposure to foreign

currency exchange rate risk at 31 December.

At 31 December 2011

EUR USD GBP Others

GH¢‘000 GH¢‘000 GH¢‘000 GH¢‘000

Assets

Cash and cash equivalents 10,868 21,650 7,824 356

Advances to Banks 1,611 15,984 12,474 -

Loans and advances to customers 3,025 127,234 - -

-------- -------- ------- -----

Total 15,504 164,868 20,298 356

==== ===== ==== ===

Liabilities

Deposits due to customers 11,085 92,648 10,614 8

Other liabilities 1,706 (378) 2,155 2

Borrowings - 79,000 - -

------- -------- -------- ----

Total 12,791 171,270 12,769 10

==== ===== ==== ===

Net on balance sheet position 2,713 (6,402) 7,529 346

==== ===== ==== ====

Credit commitments 6 116,182 14,963 2,165

= ===== ==== ====

At 31 December 2010

Total assets 16,234 144,984 18,915 1,478

Total liabilities 5,014 126,597 4,266 7

-------- --------- -------- ------

Net on balance sheet position 11,220 18,387 14,649 1,471

==== ==== ==== ====

Credit commitments 2,849 23,748 14,435 1,880

==== ===== ==== ====


The following mid inter-bank exchange rates were applied during the year :

Average Rate Reporting Rate

GH¢ to 2011 2010 2011 2010

USD 1 1.5321 1.4377 1.5800 1.4625

EUR 1 2.1535 1.9074 2.1250 1.9500

GBP 1 2.4758 2.2214 2.5325 2.2800

CHF 1 1.7400 1.3871 1.7650 1.5450

CAD 1 1.5556 1.4002 1.5600 1.4400

JPY 1 0.0175 0.0202 0.0190 0.0165

Sensitivity Analysis

A 1% strengthening of the cedi against the following currencies at 31 December 2011 would have impacted equity and profit or loss

by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant. The analysis is

performed on the same basis for 2010.

As of 31 December 2011

2011 2010

in GH¢’000 % Change Income

statement impact:

Strengthening

Equity impact:

Strengthening

%

Change

Income

statement

impact:

Strengthening

Equity impact:

Strengthening

US$ ±1 64 64 ±1 978 978

EUR ±1 (27) (27) ±1 (74) (74)

GBP ±1 (75) (75) ±1 (147) (147)

CAD ±1 13 13 ±1 (14) (14)


Sensitivity Analysis

A 1% weakening of the cedi against the above currencies at 31 December would have had an equal but opposite effect.

3.4 Interest rate risk

Interest Rate Exposure

Interest rate risk is managed principally through monitoring interest rate gaps. The principal risk to which non-trading portfolios are

exposed is the risk of loss from fluctuations in future cash flows or fair values of financial instruments because of changes in market

interest rates. ALCO is the body that monitors compliance with these limits.

At 31 December 2011

Up to 1 1-3 3-12 Over Non-interest

month months months 1 year bearing Total

GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000

Assets

Cash and cash equivalents - - - - 435,469 435,469

Government securities 25,591 309,683 46,936 214,700 - 1,196,910

Loans and advances to Banks 212,273 4,406 500 - - 217,179

Loans and advances to customers 65,762 200,966 130,284 79,199 - 476,211

Investment securities: available for sale - - - - 4,562 4,562

Investments in other equity securities - - - - 198 198

Other assets - 19,508 - - 19,616 39,124

--------- --------- --------- --------- --------- ---------

Total financial assets 303,626 534,563 777,720 293,899 459,845 2,369,653

===== ===== ===== ====== ===== =====

Liabilities

Customer deposits 964,276 92,180 100,871 - 904,063 2,061,390

Borrowings - - - 79,000 - 79,000

Other liabilities - 5,019 - - 103,406 108,425

---------- --------- --------- -------- --------- ----------

Total financial liabilities 964,276 97,199 100,871 79,000 1,007,469 2,248,815

===== ==== ===== ==== ====== ======

Total interest re-pricing gap (660,650) 437,364 676,849 214,899 (547,624) 120,838

===== ===== ===== ===== ====== =====

At 31 December 2010

Total assets 175,714 706,627 530,555 224,100 380,285 2,017,281

Total liabilities 552,401 165,428 218,203 106,461 837,565 1,880,058

===== ===== ===== ===== ===== ======

Total rate gap (376,687) 541,199 312,352 117,639 (457,280) 137,223

====== ===== ===== ===== = ===== =====


Interest Rate Exposure

The management of interest rate risk against interest rate gap limits is supplemented by monitoring sensitivity of the Bank’s

financial assets and liabilities to various standard and non-standard interest rate scenarios. Standard scenarios that are considered

on a monthly basis include a 200 basis point (bp) parallel fall or rise in market interest rates.

A change of a 200 basis points in interest rates at the reporting date would have impacted equity and profit or loss by the

amounts shown below:

2011 2010

Increase Decrease Increase Decrease

200bp 200bp 200bp 200bp

GH¢’000 GH¢’000 GH¢’000 GH¢’000

Interest income impact 5,378 (5,378) 7,780 (7,780)

Interest expense impact (1,414) 1,414 (206) 206

------- --------- --------- ---------

Net impact 3,964 (3,964) 7,574 (7,574)

==== ==== ==== ====

Operational Risk

Operational risk is the risk of direct or indirect loss due to an event or action resulting from the failure of internal processes,

people and systems or from external events. The Bank seeks to ensure that key operational risks are managed in a timely and

effective manner through a framework of policies, procedures and tools to identify, assess, monitor, control and report such risks.

The Bank is enhancing its operational risk framework to encourage a culture of effective accountability and responsibility.

Compliance and Regulatory Risk

Compliance and Regulatory risk includes the risk of non-compliance with regulatory requirements. The Bank’s Compliance

Unit is responsible for establishing and maintaining an appropriate framework of the Bank’s compliance policies and procedures.

Compliance with such policies and procedures is the responsibility of all managers. However, the Compliance Unit monitors

and reports on compliance to Executive Management and the Board. The Bank generally complied with regulatory requirements.

Capital Management

The Bank’s policy is to maintain a strong capital base so as to maintain investor and market confidence and sustain future

development of the business. The impact of the level of capital on shareholders’ return is also taken into consideration and the

Bank recognizes the security afforded by sound capital positions. The Bank complied with the statutory capital requirements

throughout the period. There have been no material changes in the Bank’s management of capital during this period.


Capital Management (cont’d)

The Bank’s capital is analyzed into two tiers:

Tier 1 capital includes ordinary paid up capital and disclosed reserves, excluding the value of assets such as investment in other banks

and financial institutions.

Tier 2 capital is made up of reserves such as unrealized gains on equity instruments classified as available for sale.

Non-risk weighted assets are classified as cash on hand, claims on government and claims on the Central Bank. Risk-weighted assets

are determined according to specified requirements that seek to reflect the varying levels of risk attached to assets and off-balance

sheet exposures.

The table below summarizes the composition of regulatory capital and ratios of the Bank. The Bank generally complied with all

externally imposed capital requirements.

Bank

2011 2010

GH¢’000 GH¢’000

Tier 1 Capital

Share capital 72,000 72,000

Credit risk reserves 24,631 42,147

Statutory reserves 55,210 51,038

Return earnings 18,806 7,328

Intangibles/other assets (9,520) (789)

Investments in capital of other Banks and Financial

Institutions/other institutions (19,158) (8,053)

Losses not provided for (25,350) (42,147)

---------- ----------

Total qualifying tier 1 capital 116,619 121,524

---------- ----------

Tier 2 Capital

Other reserves (1,174) 1,109

------- -------

Total qualifying tier 2 capital (1,174) 1,109

------- -------

Total regulatory capital 115,445 122,633

===== =====


Capital Management (cont’d)

Bank 2011 2010

GH¢’000 GH¢’000

Risk weighted assets

On balance sheet 568,345 888,035

Off balance sheet 209,836 204,308

50% of Net Open Position 62,381 2,704

100% of 3 years average annual gross income 239,205 177,447

---------- ----------

Total risk weighted assets 1,079,767 1,272,494

====== ======

Capital adequacy ratio 11% 10%

3.5 Country analysis

Outside Outside

In Ghana Ghana In Ghana Ghana

2011 2011 2010 2010

GH¢’000 GH¢’000 GH¢’000 GH¢’000

Assets

Cash and cash equivalents 427,469 8,000 317,340 32,043

Government securities 1,196,910 - 453,389 -

Advances to Banks 187,110 30,069 163,331 16,375

Loans and advances to customers 476,211 - 995,356 -

Investment securities 844 3,718 907 3,254

Investment in other equity securities 198 - 863 -

Investment in associates 1,411 18,829 3,112 4,044

Intangible asset 1,841 - 789 -

Property and equipment 53,955 - 54,684 -

Income tax asset 6,309 - - -

Deferred tax asset 11,379 - 4,745 -

Other assets 39,124 - 34,424 -

----------- ------- ----------- -------

Total assets 2,402,761 60,616 2,028,940 55,716

====== ==== ====== =====

Liabilities

Deposits due to customers 2,061,390 - 1,584,055 -

Other liabilities 108,425 - 189,542 -

Borrowings 79,000 - 73,125 -

Income tax liabilities - - 23,498 -

Employee benefit obligations 36,322 - 33,336 -

------------ ------- ----------- ------

Total liabilities 2,285,137 - 1,903,556 -

====== ==== ====== ====


3.6 Fair value of financial assets and liabilities

(a) Financial instruments not measured at fair value

ThetablebelowsummarizesthecarryingamountsandfairvaluesofthosefinancialassetsandliabilitiesnotpresentedintheGroup’s

statementoffinancialpositionattheirfairvalues.

Carrying value Fair value

2011 2010 2011 2010

GH¢’000 GH¢’000 GH¢’000 GH¢’000

Financial assets

Government securities 1,196,910 453,389 1,196,786 453,252

Loans and advances to customers 476,211 995,356 476,211 995,356

Loans and advances to Banks 217,179 179,706 217,179 179,706

Investment securities – available for sale 4,562 4,161 4,562 4,161

==== ==== ==== ====

Carrying value Fair value

2011 2010 2011 2010

GH¢’000 GH¢’000 GH¢’000 GH¢’000

Financial liabilities

Deposits from customers 2,061,390 1,584,055 2,061,390 1,584,055

Borrowings 79,000 73,125 79,000 73,125

==== ==== ==== ====

(i) Advances to Banks

Loans and advances to banks include inter-bank placements. The carrying amount of floating rate placements and overnight

deposits is a reasonable approximation of their fair values. The estimated fair value of fixed interest bearing deposits is based on

discounted cash flows using prevailing money-market interest rates for debts with similar credit risk and maturity profiles.

(ii) Loans and advances to customers

Loans and advances to customers are net of charges for impairment. The estimated fair value of loans and advances represents

the discounted amount of estimated future cash flows expected to be received. Expected cash flows are discounted at current

market rates to determine the fair value.

(iii) Investment securities

The fair value of investment securities is based on market prices or broker/dealer price quotations. Where this information is

not available, fair value is rated using quoted market prices for securities with similar credit, maturity and yield characteristics. All

available for sale assets are measured and carried at fair value.


(iv) Deposits from Banks and customers

The estimated fair value of deposits with no stated maturity dates, which includes non-interest bearing deposits, is the amount

repayable on demand. The estimated fair value of fixed interest-bearing deposits is based on discounted cash flows using interest

rates for new debts with similar maturity profiles.

(v) Off-balancesheetfinancialinstruments

The estimated fair values of the off-balance sheet financial instruments are based on market prices for similar facilities. Where this

information is not available, fair value is estimated using discounted cash flow analysis.

(b) Fair value hierarchy

IFRS 7 specifies a hierarchy of valuation techniques based on whether inputs to those valuation techniques are observable or

unobservable. Observable inputs reflect market data obtained from independent sources; unobservable inputs reflect the Bank’s

market assumptions. These two types of inputs have created the following fair value hierarchy:

Level 1 - Quoted prices (adjusted) in active markets for identical assets or liabilities. This level includes listed equity securities and

debt instruments on exchanges.

Level 2 - Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (as prices)

or indirectly (derived from prices).

Level 3 - inputs for assets or liabilities that are not based on observable market data (unobservable inputs). This level includes equity

investments and debt instruments with significant unobservable components.

This hierarchy requires the use of observable market data when available. The Bank considers relevant and observable market

prices in its valuations where possible.

Level 1 Level 2 Level 3

GH¢’000 GH¢’000 GH¢’000

Government securities 1,196,910 - -

Investment securities – available-for-sale 4,562 - -

Investments in other equity securities - - 198

Loans and receivables from customers - 476,211 -

Loans and receivables from banks - 217,179 -

Other assets - 19,508 19,616

----------- --------- ---------

Total financial assets 1,201,472 712,898 19,814

====== ===== =====


4. CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS

The Bank’s financial statements and financial results are influenced by accounting policies, assumptions, estimates and management

judgment, which necessarily have to be made in the course of preparing the financial statements.

The Bank makes estimates and assumptions that affect reported amounts of assets and liabilities. All estimates and assumptions

required in conformity with IFRS are based on best estimates made in accordance with applicable standards. Estimates and

judgments are evaluated on a continuous basis, based on past experience and other factors, including expectations with regard

to future events.

(a) Impairment losses on loans and advances

The Bank reviews its loan portfolio to assess impairment at least on a quarterly basis. In determining whether an impairment loss

should be recorded in profit or loss, the Bank considers observable data that may indicate measurable decreases in estimated

future cash flows from a portfolio of loans before decreases can be identified with individual loans in that portfolio. This

evidence may include observable data indicating adverse changes in the payment status of borrowers, or economic conditions

that correlate with defaults on assets. Management uses estimates based on historical loss experience for assets with similar

credit risk characteristics and objective evidence of impairment similar to those in the portfolio when projecting future cash

flows. The methodology and assumptions used for estimating both the amount and timing of future cash flows are reviewed

regularly to reduce any differences between loss estimates and actual loss experience.

(b) Impairmentofavailablefor-saleequityinvestments

The Bank determines that available-for-sale equity investments are impaired when there has been a significant or prolonged

decline in the fair value below its cost. The determination of what is significant or prolonged requires judgment. In making this

judgment, the Bank evaluates among other factors, the normal volatility in share prices.

(c) Fairvalueoffinancialinstruments

The fair value of financial instruments where no active market exists or where quoted prices are not otherwise available are

determined using valuation techniques. In these cases, fair values are estimated from observable data in respect of similar

financial instruments or using models. Models are calibrated to ensure that outputs reflect actual data and comparative market

prices.

(d) Income taxes

Significant estimates are required in determining provisions for income taxes. There are many transactions and calculations for

which the ultimate tax determination is uncertain during the ordinary course of business. The Bank recognizes liabilities for

anticipated tax exposures based on estimates of whether additional taxes will be due. Where the final tax outcome of these

matters is different from the amounts that were initially recorded, such differences are adjusted in the period in which such

determination is made.


5. INTEREST INCOME

The Group The Bank

2011 2010 2011 2010

GH¢’000 GH¢’000 GH¢’000 GH¢’000

Cash and short term funds 15,001 10,387 15,001 10,387

Investment securities 114,340 48,732 114,340 48,732

Loans and advances 127,278 329,977 127,278 329,977

--------- --------- --------- ----------

256,619 389,096 256,619 389,096

===== ===== ===== =====

6. INTEREST EXPENSE

Current and savings accounts 14,659 31,265 14,659 31,265

Time and other deposits 32,887 52,059 32,887 52,059

Interest on borrowings 2,261 19,488 2,261 19,488

-------- --------- ------- ----------

49,807 102,812 49,807 102,812

==== ===== ==== =====

7. FEES AND COMMISSION INCOME

Letters of credit and guarantees 3,105 2,543 3,105 2,543

Commission on foreign services 4,852 3,667 4,852 3,667

Commission of turnover 28,609 20,483 28,609 20,483

Processing and facility fees 5,100 1,759 5,100 1,759

Other commissions 16,806 14,040 16,806 14,040

Other fees and commissions 8,786 6,069 8,786 6,069

-------- -------- -------- --------

67,258 48,561 67,258 48,561

==== ==== ==== ====

8. FEES AND COMMISSION EXPENSE

Fees and commission expense 2,730 2,680 2,730 2,680

==== === ==== ====

9. NET TRADING INCOME

Foreign currency trading 13,485 (3,091) 13,485 (3,091)

==== ==== ==== ====


10. OTHER INCOME

The Group The Bank

2011 2010 2011 2010

GH¢’000 GH¢’000 GH¢’000 GH¢’000

Dividend Income 1,589 1,455 2,223 1,526

Bad debt recoveries 516 97 516 97

Profit on sale of property and equipment 51 270 51 270

Rental income 450 286 450 286

Other income 1,305 324 1,207 29

------- ------- ------- -------

3,911 2,432 4,447 2,208

==== ==== ==== ====

11. IMPAIRMENT CHARGE ON LOANS AND ADVANCES

Loan impairment 134,979 124,329 134,979 124,329

===== ===== ===== =====

At 1 January 124,329 53,398 124,329 53,398

Increase in impairment 10,650 70,931 10,650 70,931

--------- --------- --------- --------

At 31 December 134,979 124,329 134,979 124,329

===== ===== ===== =====

Analysis of impairment charge

Specific Impairment 8,809 69,561 8,809 69,561

General Impairment 1,841 1,370 1,841 1,370

------- -------- ------- --------

10,650 70,931 10,650 70,931

==== ===== ==== ====

12. OPERATING EXPENSES

Staff expenses(Note 12(b)) 135,912 110,883 135,912 110,448

Technology and communication 15,089 11,834 15,089 11,834

Advertising 2,121 1,070 2,121 1,070

Training 1,031 672 1,031 667

Audit fees 368 255 345 241

Directors fees 1,387 1,289 1,362 1,264

Depreciation of property and equipment 11,637 10,667 11,637 10,667

Amortisation of software 663 837 663 837

Donations (Note 38) 727 421 727 421

Other administrative expenses 51,053 50,665 48,714 50,503

Other impairment losses (Note 12(a)) 31,340 3,788 31,340 3,788

--------- --------- ---------- ---------

251,328 192,381 248,941 191,740

===== ===== ===== =====


12. OPERATING EXPENSES (cont’d)

(a) Other impairment losses

The Board carried out a comprehensive review of other assets and liabilities as part of an exercise to reassess balances in the

current and past financial statements. Following this review, a number of accounts were highlighted to have balances whose

carrying values exceeded their recoverable amounts, making it necessary to recognize other impairment losses totaling GH¢74

million, made up of losses amounting to GH¢31 million, GH¢4 million and GH¢39 million for the years 2011, 2010 and 2009

respectively.

(b) Staff expenses

The Group The Bank

2011 2010 2011 2010

GH¢’000 GH¢’000 GH¢’000 GH¢’000

Staff expenses comprise:

Wages and salaries 64,114 48,172 64,114 47,924

Staff Allowances 42,118 38,977 42,118 38,853

Social security fund contributions 7,451 6,119 7,451 6,087

Provident fund contributions 6,941 5,678 6,941 5,647

Retirement benefit obligations 7,150 7,367 7,150 7,367

Restructuring costs 6,061 - 6,061 -

Other staff costs 2,077 4,570 2,077 4,570

--------- --------- --------- ----------

135,912 110,883 135,912 110,448

===== ===== ===== =====

The number of persons employed by the Bank at the year end was 2,273 (2010: 2,314).

13. INCOME TAX

The Group The Bank

2011 2010 2011 2010

GH¢’000 GH¢’000 GH¢’000 GH¢’000

Current income tax 17,877 13,841 17,768 13,985

National fiscal stabilization levy 1,484 2,962 1,484 2,940

Deferred tax (6,254) 3,684 (6,254) 3,684

-------- -------- -------- --------

13,107 20,487 12,998 20,609

==== ===== ===== =====


13. INCOME TAX (cont’d)

The tax on the Bank’s profit before tax differs from the theoretical amount that would arise using the basic tax rate as follows:

The Group The Bank

2011 2010 2011 2010

GH¢’000 GH¢’000 GH¢’000 GH¢’000


===== ===== ===== =====

Corporate tax rate at 25% (2010: 25%)

Tax calculated at corporate tax rate 7,770 17,842 7,420 17,152

Income subject to tax at different rates 288 226 178 122

Over provision in previous years - (6,282) - (6,034)

Tax impact on non-deductible expense/

income for tax purposes 12,873 4,954 13,224 5,644

Effect of capital allowances (3,054) (2,899) (3,054) (2,899)

National fiscal stabilization levy 1,484 2,962 1,484 2,940

Deferred tax (6,254) 3,684 (6,254) 3,684

-------- ------- ------- --------

Income tax expense 13,107 20,487 12,998 20,609

==== ==== ==== ====

Effective tax rates 42% 29% 44% 30%

The movement on the income tax account is as follows:

Balance at Charge for Balance at

1 January the year Payment 31 December

GH¢’000 GH¢’000 GH¢’000 GH¢’000

The Group

Year of assessment

Up to 2010 20,019 - - 20,019

2011 - 17,877 (45,435) (27,558)

------- -------- -------- -------

20,019 17,877 (45,435) (7,539)

National Stabilisation Levy 3,479 1,484 (3,733) 1,230

------- -------- -------- --------

23,498 19,361 (49,168) (6,309)

==== ==== ===== ====


13. INCOME TAX (cont’d)

The Bank

Year of assessment

Up to 2010 20,019 - - 20,019

2011 - 17,768 (45,326) (27,558)

------- -------- -------- --------

20,019 17,768 (45,326) (7,539)

National Stabilisation Levy 3,431 1,484 (3,733) 1,182

-------- -------- -------- --------

23,450 19,252 (49,059) (6,357)

==== ==== ===== ====

The tax positions up to 2009 have been agreed with the tax authorities and all liabilities arising have been settled in full. The

remaining tax positions for the 2010 to 2011 years of assessment are yet to be agreed with the tax authorities.

Deferred tax

The Group The Bank

2011 2010 2011 2010

GH¢’000 GH¢’000 GH¢’000 GH¢’000

Deferred tax liabilities

Accelerated tax depreciation 3,488 3,479 3,488 3,479

Actuarial gain - 99 - 99

------- -------- -------- --------

3,488 3,578 3,488 3,578

==== ==== ==== ====

Deferred tax assets

Provisions for loan impairment (1,168) (830) (1,168) (830)

Other provisions (13,418) (7,493) (13,418) (7,493)

Actuarial loss (281) - (281) -

------- -------- -------- --------

(14,867) (8,323) (14,867) (8,323)

===== ==== ===== ====

Net deferred tax 11,379 (4,745) 11,379 (4,745)

==== ==== ==== ====


Deferred tax (cont’d)

The movement on the deferred tax account is as follows:

The Group The Bank

2011 2010 2011 2010

GH¢’000 GH¢’000 GH¢’000 GH¢’000

Income statement (6,254) 3,684 (6,254) 3,684

==== === ==== ===

The deferred tax credit comprises the following temporary differences:

Accelerated tax depreciation 9 857 9 857

Provision for loan impairment (338) 12,519 (338) 12,519

Other provisions (5,925) (7,492) (5,925) (7,492)

Unrealized exchange gain - (2,200) - (2,200)

------- ------- ------- -------

(6,254) 3,684 (6,254) 3,684

==== ==== ==== ====

14. NATIONAL FISCAL STABILISATION LEVY

National Fiscal Stabilization Levy Act, 2009, became effective during the period 1 July 2009 to December 2011. Under the Act,

an additional 5% levy, which is payable quarterly, is charged on profit before tax.

15. EARNINGS PER SHARE

Basic earnings per share is calculated by dividing the net profit attributable to equity holders of the Bank by the weighted average

number of ordinary shares in issue during the year.

The Group The Bank

2011 2010 2011 2010

GH¢’000 GH¢’000 GH¢’000 GH¢’000

Profit attributable to equity holders of the Bank 17,972 50,880 16,683 48,002

==== ==== ==== =====

Weighted average number of ordinary shares 265,000 265,000 265,000 265,000

Basic earnings per share (expressed in Ghana

pesewas per share) 7 19 6 18

Diluted earnings per share (expressed in Ghana

pesewas per share) 7 19 6 18

The Bank has no convertible notes and share options, which could potentially dilute its earnings per share, basic and diluted

earnings per share therefore remained the same.


16. CASH AND CASH EQUIVALENTS

The Group The Bank

2011 2010 2011 2010

GH¢’000 GH¢’000 GH¢’000 GH¢’000

Cash on hand 59,695 39,742 59,695 39,742

Balances with Bank of Ghana 294,877 274,427 294,877 274,427

Items in course of collection 70,858 - 70,858 -

Accounts with other Banks 10,039 35,214 8,000 32,043

--------- --------- --------- ----------

435,469 349,383 433,430 346,212

===== ===== ===== =====

Included in balances with Bank of Ghana are mandatory reserve deposits representing 9% of the bank’s total deposit, which are not

available for use in the bank’s day to day operations. Cash in hand, items in course of collection and balances with Bank of Ghana

are non-interest-bearing.

17. GOVERNMENT SECURITIES

The Group The Bank

2011 2010 2011 2010

GH¢’000 GH¢’000 GH¢’000 GH¢’000

At 1 January 453,389 216,784 452,461 215,857

Additions 1,577,377 431,746 1,576,419 430,789

Redeemed on maturity (833,856) (195,141) (832,899) (194,185)

------------ --------- ------------ ------------

At 31 December 1,196,910 453,389 1,195,981 452,461

====== ===== ====== =====

Maturing within 90 days of acquisition 335,274 137,449 335,069 136,520

Maturing after 90 days but within 182 days 2,956 75,110 2,956 75,111

Maturing after 182 days of acquisition 643,980 183,130 643,256 183,130

Maturing after 1 year of acquisition 214,700 57,700 214,700 57,700

----------- --------- ----------- ----------

1,196,910 453,389 1,195,981 452,461

====== ===== ====== ======

Government securities are treasury bills and bonds issued by the Government of Ghana. These are classified as held to maturity

and carried at amortised cost.


18. ADVANCES TO BANK

The Group The Bank

2011 2010 2011 2010

GH¢’000 GH¢’000 GH¢’000 GH¢’000

Placements with Bank of Ghana 180,000 130,000 180,000 130,000

Placements with other Banks 37,179 49,706 37,179 49,706

--------- ---------- ---------- ----------

217,179 179,706 217,179 179,706

===== ===== ===== =====

19. LOANS AND ADVANCES TO CUSTOMERS

The Group The Bank

2011 2010 2011 2010

GH¢’000 GH¢’000 GH¢’000 GH¢’000

Individuals 218,391 157,179 218,391 157,179

Staff loans 27,849 19,075 27,849 19,075

Private Enterprise 157,525 228,077 157,525 228,077

Govt’s Dept, Public Inst & Public Ent 207,425 715,354 207,425 715,354

---------- ---------- ---------- -----------

Gross loans and advances to customers 611,190 1,119,685 611,190 1,119,685

Allowances for impairment (Note 11) (134,979) (124,329) (134,979) (124,329)

---------- ---------- ----------- -----------

Net loans and advances to customers 476,211 995,356 476,211 995,356

===== ===== ===== =====

Analysis by industry on gross loans

Construction 52,121 49,611 52,121 49,611

Agriculture, forestry and fishing 4,019 4,041 4,019 4,041

Mining and quarrying 3,426 14,827 3,426 14,827

Manufacturing 26,940 23,858 26,940 23,858

Electricity, gas and water - 15, 625 - 15, 625

Commerce and finance 248,183 830,002 248,183 830,002

Transport, storage and communication 15,400 14,005 15,400 14,005

Services 258,410 165,595 258,410 165,595

Miscellaneous 2,691 2,121 2,691 2,121

---------- ----------- ---------- ------------

611,190 1,119,685 611,190 1,119,685

===== ====== ====== ======

Current 449,687 934,602 449,687 934,602

===== ===== ===== =====

Non-current 161,503 185,083 161,503 185,083

===== ===== ===== ======


19. LOANS AND ADVANCES TO CUSTOMERS (cont’d)

The total impairment charge for the year represents 2% of gross loans at the year end (2010: 6%).

The fifty largest exposures by customers made up 53% of gross loans at the year end (2010: 90%).

The total amount of allowance for impairment represents 22% of gross loans at the year end (2010: 11%).

Gross non-performing loan ratio was 26% at year end (2010: 15%)

The maximum amount due from staff during the year amounted to GH¢27,849,000 (2010: GH¢25,810,000).

20. INVESTMENT SECURITIES – AVAILABLE FOR SALE

The Group The Bank

2011 2010 2011 2010

GH¢’000 GH¢’000 GH¢’000 GH¢’000

At 1 January 4,161 4,408 4,113 4,347

Additions 1,550 - - -

Disposal (6) - - -

Forfeiture - (554) - (554)

Changes in fair value (Note 32) (1,143) 307 (1,144) 320

------- ------- ------- -------

At 31 December 4,562 4,161 2,969 4,113

==== ==== ==== ====

21. INVESTMENT IN SUBSIDIARY

The Bank

% Ordinary shares 2011 2010

GH¢’000 GH¢’000

Development Finance & Holdings Limited 100 0.02 0.02

------ ------

0.02 0.02

=== ===


22. INVESTMENT IN OTHER EQUITY SECURITIES

Ordinary The Group Ordinary The Group

shares 2011 2010 shares 2011 2010

% GH¢’000 GH¢’000 % GH¢’000 GH¢’000

National Investment Bank 2.5 29 29 2.5 29 29

CDH Financial Holdings 7.1 6 6 7.1 6 6

Securities Discount Company 1.1 16 16 1.1 16 16

Fidelity Bank 0.6 13 13 0.6 13 13

Vacuum Salt Project Limited 10 1 1 - - -

Accra Markets Limited 25 25 25 - - -

Ghana Community Network 10 108 108 - - -

Subri Industrial Plantation 3.9 - 10 - - -

Increase in value for all Shares - - 655 - - -

----- ---- ----- ----

198 863 64 64

=== === == ==

23. PROPERTY AND EQUIPMENT

The Group and The Bank

Capital

Furniture & Motor work in

Buildings equipment Computers vehicles progress Total

2011 GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000

Cost

At 1 January 2011

- Restated 44,112 30,713 23,934 2,735 2 101,496

Additions 2,149 6,432 2,112 348 - 11,041

Disposals (1) - (23) (122) - (146)

Asset write-off (73) (131) - - - (204)

------- ------- -------- ------ -- --------

At 31 December 2011 46,187 37,014 26,023 2,961 2 112,187

==== ==== ==== ==== = =====

Depreciation

At 1 January 2011

- Restated 6,335 19,091 18,881 2,505 - 46,812

Charge for the year 897 6,165 4,362 213 - 11,637

Released on

disposal (1) - (23) (118) - (142)

Asset written off (1) (74) - - - (75)

------ ------- ------ ------ ---- ------

At 31 December 2011 7,230 25,182 23,220 2,600 - 58,232

==== ==== ==== ==== = ====

Net book value

At 31 December 2011 38,957 11,832 2,803 361 2 53,955

===== ==== ==== === == =====


23. PROPERTY AND EQUIPMENT (cont’d)


Capital



GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000

2010

Cost

At 1 January 2010

- Restated 38,772 24,944 21,320 2,563 2 87,601

Additions 5,395 5,825 2,616 226 - 14,062

Disposals (55) (56) (2) (54) - (167)

------- ------- ------- ------ --- ----------

At 31 December 2010 44,112 30,713 23,934 2,735 2 101,496

==== ==== ==== ==== == =====

Depreciation

At 1 January 2010

- Restated 5,456 13,817 14,603 2,380 - 36,256


Disposals (24) (51) (1) (35) - (111)

------ ------- ------- ------ ----- --------

At 31 December 2010 6,335 19,091 18,881 2,505 - 46,812

=== ==== ==== ==== === ====

Net book value

At 31 December 2010 37,777 11,622 5,053 230 2 54,684

==== ==== ==== == = ===

Cost

At 1 January 2009 31,017 17,387 22,675 2,602 2 73,683

Additions 7,762 7,557 3,893 10 - 19,222

Reclassified to

intangible assets - - (5,248) - - (5,248)

Disposals (7) - - (49) - (56)

------- ------- -------- ------ --- ---------

At 31 December 2009 38,772 24,944 21,320 2,563 2 87,601

==== ==== ===== ==== == ====


23. PROPERTY AND EQUIPMENT (cont’d)


Capital



GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000

Depreciation

At 1 January 2009 4,790 10,576 14,920 2,312 - 32,598


Reclassified to

intangible assets - - (4,411) - - (4,411)

Disposals (4) - - (49) - (53)

------ ------- --------- ------ ----- --------

At 31 December 2009 5,456 13,817 14,603 2,380 - 36,256

=== ==== ==== ==== === ====

Net book value

At 31 December 2009 33,316 11,127 6,717 183 2 51,345

==== ==== ==== ==== == ====

Disposal of property and equipment

2011 2011

GH¢’000 GH¢’000

Cost 146 167

Accumulated depreciation (142) (111)

----- -----

Net book value 4 56

Sales proceeds 55 326

--- -----

Profit on disposal 51 270

== ==


24. INTANGIBLE ASSETS


Restated Restated

2011 2010 1/1/10

GH¢’000 GH¢’000 GH¢’000

Cost

At 1 January 6,037 5,248 -

Additions 1,715 789 5,248

------- ------- -------

At 31 December 7,752 6,037 5,248

==== ==== ====

Accumulated amortization

At 1 January 5,248 4,411 -

Charge for the year 663 837 4,411

------- ------ -------

At 31 December 5,911 5,248 4,411

==== ==== ====

Net book value 1,841 789 837

=== === ===

Intangible assets represent licenses for computer software.

25. OTHER ASSETS

The Group The Bank

Restated Restated Restated Restated

2011 2010 1/1/10 2011 2010 1/1/10

GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000

Account receivables 10,348 18,959 20,523 10,296 18,890 20,511

Prepayments 9,268 8,868 274 9,268 8,868 274

Accrued income 19,508 6,597 4,723 19,508 6,597 4,723

--------- --------- --------- -------- --------- --------

39,124 34,424 25,520 39,072 34,355 25,508

==== ==== ==== ==== ==== =====

Current 29,124 27,074 25,520 29,072 27,005 25,508

Non-current 10,000 7,350 - 10,000 7,350 -

==== ==== ===== ==== ==== =====


26. DEPOSITS FROM CUSTOMERS

The Group The Bank

Restated Restated

2011 2010 2011 2010

GH¢’000 GH¢’000 GH¢’000 GH¢’000

Current accounts 904,064 657,775 904,064 657,775

Savings account 788,664 553,167 788,664 553,167

Time deposit 368,662 373,113 368,662 373,113

----------- ----------- ---------- ------------

2,061,390 1,584,055 2,061,390 1,584,055

====== ====== ====== ======

Current 2,061,390 1,584,055 2,061,390 1,584,055

====== ====== ====== ======

The twenty largest depositors constituted 11% of the total deposits at the year end (2010: 32%).

27. OTHER LIABILITIES

The Group The Bank

Restated Restated

2011 2010 2011 2010

GH¢’000 GH¢’000 GH¢’000 GH¢’000

Creditors 66,081 101,464 66,081 101,464

Accruals 32,147 18,882 32,101 18,112

Other liabilities 10,197 69,196 10,197 69,196

-------- --------- -------- ----------

108,425 189,542 108,379 188,772

===== ===== ====== ======

Current 27,875 26,586 27,829 25,816

Non-current 80,550 162,956 80,550 162,956

==== ===== ==== =====

28. BORROWINGS

Exchange

At 1/1/11 Drawdown Repayment differences At 31/12/11

GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000

Bank of Ghana 73,125 - - 5,875 79,000

==== == == ==== ====


A loan of US$50 million was made available to the Bank by Bank of Ghana (BOG) on 19 February 2009. This loan was advanced

by BOG to enable the Bank meet maturing obligations in respect of letters of credit established on behalf of Tema Oil Refinery

(TOR). The loan attracts interest at a rate of 2.234% per annum, which is payable quarterly.

29. EMPLOYEE BENEFIT OBLIGATIONS

Post-employment and long-term benefit plan

Apart from the legally required social security scheme, long service awards accrue to employees based on graduated periods of

uninterrupted service. These awards accrue over the service life of employees. Employees leaving the service of the Bank after

twenty-five (25) years through retirement (both voluntary and compulsory) become eligible for cash payments equivalent to their

current entitlement at the time of retirement, based on their length of service, less entitlements previously paid.

The Bank pays monthly pension benefits to retired employees, under a closed defined benefit pension scheme. Under this

scheme, beneficiaries are paid pensions equal to 60% of the net basic salaries of their serving counterparts. The Bank also pays

post retirement medical care for its staff.

Employee benefit obligations recognised in the financial statements

2011 2010

GH¢’000 GH¢’000

Pension funds: defined benefit plan 36,322 33,336

==== ====

Reconciliation of assets and employee benefit obligations recognised in the statements of financial position

Defined benefit pension plan

Present value of funded obligation - -

Fair value of plan assets - -

---- ----

Excess of liabilities/(assets) of funded obligations - -

Present value of unfunded obligations 36,322 33,336

Net unrecognised actuarial (losses)/gains - -

Unrecognised assets - -

--------- ---------

Net employee benefit obligations recognised

in the statements of financial position 36,322 33,336

==== ====

Movements of defined benefits obligations, net

Balance at 1 January 33,336 31,350

Charge against profits 7,150 7,367

Change in other comprehensive income 1,519 (396)

Benefits paid (5,683) (4,985)

-------- --------

Balance at 31 December 36,322 33,336

==== ====


29. EMPLOYEE BENEFIT OBLIGATIONS (cont’d)

Movements in the present value of defined benefit obligations

2011 2010

GH¢’000 GH¢’000

Unfunded defined benefit obligations as of 1 January 33,336 31,350

Current service cost 2,240 2,642

Past service cost - -

Interest on pension scheme obligations 4,910 4,725

Benefits paid (unfunded plans) (5,683) (4,985)

Recognised actuarial loss/(gain) 1,519 (396)

------- -----

Total present value of defined benefits

obligation as at 31 December 36,322 33,336

==== ====

Expenses recognised in the statements of comprehensive income

Current service cost 2,240 2,642

Interest on pension scheme obligations 4,910 4,725

Expected return on plan assets - -

Past service cost - -

------- -------

Total charge to profit 7,150 7,367

==== ====

Total loss/(gain) recognized in statements

of comprehensive income before tax 1,519 (396)

Deferred taxation (380) 99

----- -----

1,139 (297)

==== ====

The disclosures under IAS 19 were compiled by qualified independent actuaries based on actuarial valuations done up to 31

December 2011. Pension costs were estimated using the projected unit method and the assumptions are set out below:

Principal actuarial assumptions used

2011 2010

% %

Discount rate 15 15

Expected rate of salary increase 10 10

Rate of inflation 12 12


30. STATED CAPITAL

No. of shares Proceeds

2011 2010 2011 2010

GH¢’000 GH¢’000

Bank

Authorised:

Ordinary shares of no par value 1,500,000 1,500,000 - -

====== ======

Issued ordinary shares comprise:

Issued for cash 115,000 115,000 60,030 60,030

Transfer from retained earnings 86,500 86,500 343 343

Transfer from retained earning - - 10,000 10,000

Capitalisation of reserves 1,000 1,000 2 2

Transfer from capital surplus 62,500 62,500 1,625 1,625

--------- ---------- -------- --------

At 31 December 265,000 265,000 72,000 72,000

===== ===== ==== ====

There is no unpaid liability on any share and no call or installment unpaid on any share. There are no shares in treasury.

31. RETAINED EARNINGS

The Group The Bank

Restated Restated

2011 2010 2011 2010

GH¢’000 GH¢’000 GH¢’000 GH¢’000

At 1 January 13,965 (5,086) 7,328 (8,845)


Dividend paid relating to prior year (18,550) (9,434) (18,550) (9,434)

Transfer to statutory banking

reserves (Note 33) (4,171) (24,001) (4,171) (24,001)

Transfer from regulatory credit risk

reserve (Note 34) 17,516 1,606 17,516 1,606

-------- -------- -------- --------

At 31 December 26,732 13,965 18,806 7,328

==== ==== ==== =====

32. FAIR VALUE RESERVES

Available for sale instruments

At 1 January 1,652 1,345 812 492

Net gains from changes in fair value

of investment securities (Note 20) (1,143) 307 (1,144) 320

--------- ------ --------- ------

At 31 December 509 1,652 (332) 812

=== === === ===


33. STATUTORY RESERVE

Statutory reserve represents cumulative amounts set aside from annual profits after tax required under the Banking Act.

The proportion of net profits transferred to reserves ranges from 12.5% to 50% of net profit after tax, depending on the relationship

that the balance on statutory reserves bears to paid up capital.

The Group The Bank

2011 2010 2011 2010

GH¢’000 GH¢’000 GH¢’000 GH¢’000

At 1 January 51,039 27,038 51,039 27,038

Transfer from income surplus 4,171 24,001 4,171 24,001

------ --------- ------ ---------

At 31 December 55,210 51,039 55,210 51,039

==== ==== ==== ===

34. CREDIT RISK RESERVE

Credit risk reserve represents the cumulative balance of amounts transferred from/to retained earnings to meet gaps in impairment

allowances based on BOG guidelines and IFRS.

The Group The Bank

2011 2010 2011 2010

GH¢’000 GH¢’000 GH¢’000 GH¢’000

At 1 January 42,147 43,753 42,147 43,753

Transfer from retained earnings (17,516) (1,606) (17,516) (1,606)

---------- --------- ---------- --------

At 31 December 24,631 42,147 24,631 42,147

==== ==== ==== ====

35. OTHER RESERVES

Other reserves represent actuarial gains and losses on pension obligations recognised through other comprehensive income.

The Group The Bank

2011 2010 2011 2010

GH¢’000 GH¢’000 GH¢’000 GH¢’000

At 1 January 297 - 297 -

Acturial (loss)/ gain (1,519) 396 (1,519) 396

Deferred tax 380 (99) 380 (99)

------ ----- ----- -----

At 31 December (842) 297 (842) 297

=== === === ===


36. INVESTMENT IN ASSOCIATES

The Group The Bank

2011 2010 2011 2010

GH¢’000 GH¢’000 GH¢’000 GH¢’000

At 1 January 7,156 5,357 3,876 3,876

Additions - (rights issue) 12,250 - 12,250 -

Impairment (1,481) - - -

Share of post tax profits 4,321 3,173 - -

Dividend paid (2,006) (1,374) - -

------- ------- ------- -------

At 31 December 20,240 7,156 16,126 3,876

==== ==== ==== ====

The following amounts represent the profit, assets and liabilities of the Bank’s associates:

2011 2010

GH¢’000 GH¢’000

Profit for the year 22,155 18,121

==== =====

Total assets 1,864,150 1,493,926

Total liabilities (1,589,033) (1,256,832)

------------- -------------

Net assets 275,117 237,094

===== =====

The Bank’s principal associates are:

Interest

Main areas in ordinary

of operations share capital %

Ghana International Bank United Kingdom 20

Activity Venture Finance Limited Ghana 40


37. CONTINGENT LIABILITIES AND COMMITMENTS

Off balance sheet items

As with other banks, the Bank engages in business activities involving acceptances, performance bonds and indemnities. The majority

of these facilities are offset by corresponding obligations of third parties, the nominal amounts of which are not reflected in the

statements of financial position.

Nature of instruments

An acceptance is an undertaking by a bank to pay a bill of exchange drawn on a customer. The Bank expects most acceptances to

be presented, but reimbursement by the customer is normally immediate.

Other contingent liabilities include transaction related customs and performance bonds and are generally, short-term commitments

to third parties.

Commitments to lend to a customer in the future are made subject to certain conditions. Such commitments are either made for a

fixed period, or have specific maturity dates but are cancellable by the lender subject to notice requirements. Documentary credits

commit the Bank to make payments to third parties, on the production of documents, which are usually reimbursed immediately

by customers.

The following summarize the nominal principal amounts of contingent liabilities and commitments with off-balance sheet risks.

The Group The Bank

2011 2010 2011 2010

GH¢’000 GH¢’000 GH¢’000 GH¢’000

Contingent liabilities

Guarantees and indemnities 81,012 167,350 81,012 167,350

Documentary and commercial letters of credit 128,824 36,958 128,824 36,958

---------- ---------- ---------- ----------

209,836 204,308 209,836 204,308

Commitments

Loan commitments 15,822 - 15,822 -

--------- ---------- --------- ----------

225,658 204,308 225,658 204,308

===== ===== ===== =====

Capital Expenditure Commitments

Capital commitments not provided for in the financial statements as at 31 December 2011 was GH¢5,923,399 (2010: nil).

Legal proceedings

There were a number of legal proceedings pending against the Bank at 31 December 2011 and 2010. Some of these cases have

been brought against the Bank by former employees, customers and others. Potential liabilities have been estimated at GH¢718,533

(2010: GH¢630,526).


38. SOCIAL RESPONSIBILITY COST

A total of GH¢727,399 (2010: GH¢421,267) was spent under the Bank’s social responsibility programme.

39. TRANSACTIONS WITH EXECUTIVE DIRECTORS AND KEY MANAGEMENT PERSONNEL

Key management personnel are defined as those persons having authority and responsibility for planning, directing and controlling

the activities of Ghana Commercial Bank Limited (directly or indirectly) and comprise the Directors and Senior Management of

Ghana Commercial Bank Limited.

There were no material transactions with companies in which a Director or other members of key management personnel (or any

connected person) is related.

No provisions have been made in respect of loans to Directors or other members of key management personnel (or any connected

person).

Remuneration of Executive Directors and other key management personnel:

2011 2010

GH¢’000 GH¢’000

Salaries and other short-term benefits 722 536

Social security contributions 68 53

----- -----

790 589

=== ===

Details of transactions between Directors and other key management personnel (and their connected persons) and the

Bank are as follows:

2011 2010

GH¢’000 GH¢’000

Loans

Loan outstanding at 1 January 299 209

Net movement (32) 90

----- -----

Loans outstanding at 31 December 267 299

== ==

Interest income 12 11

== ==

No loans were advanced to non-executive Directors during the year and there were no outstanding balances on account of loans

due from non-executive Directors at the year end.


39. TRANSACTIONS WITH EXECUTIVE DIRECTORS AND KEY MANAGEMENT PERSONNEL (cont’d)

2011 2010

GH¢’000 GH¢’000

Deposits

Deposits at 1 January 129 18

Net movement during the year (36) 111

----- -----

Deposits at 31 December 93 129

== ==

Interest expense 7 7

== ==

40. PLEDGED ASSETS

In the normal course of business, assets are sometimes pledged for specific purposes. The status of pledged assets at the year

end was as follows:

The Group The Bank

2011 2010 2011 2010

GH¢’000 GH¢’000 GH¢’000 GH¢’000

Government securities 52,500 111,200 52,500 111,200

==== ===== ==== =====

41. DIVIDEND PER SHARE

The Directors wish to propose a dividend of GHp7 (2010: GHp7) per share amounting to GH¢18,550,000 (2010: GH¢18,550,000)

at the forthcoming annual general meeting.

42. SEGMENT REPORTING

The Bank is in the process of re-organizing its operations along key business segments. Operations had previously been

managed as one business with no distinct operating segments. Accordingly, no information is presented on segment reporting.


43. RESTATEMENT OF 31 DECEMBER 2010 AND 1 JANUARY 2010 COMPARATIVES

The 2010 opening and closing balances were restated for the following reasons:

Prior Year Adjustments

A number of comparative account balances including cash and cash equivalents; advances to other banks; loans and advances to

customers; other assets; other equity investments; property and equipment; intangible assets; customer deposits; other liabilities;

income tax liabilities; deferred tax liabilities; retained earnings; net trading income; operating expenses; tax expense and statutory

reserves have been restated in order to ensure compliance with the requirements of IFRSs. An explanation of how the restatements

have affected the Group and the Bank’s financial position and financial performance is set out below:

1 January 2010 (AmountdisclosedinGH¢’000)

a) Reclassification of intangible assets recorded as property and equipment - GH¢837 (CR).

b) Reclassification of property and equipment from other assets – (Cost - GH¢2,852 (CR); Net book value - GH¢2,527 (DR))

c) Provision for misstated balances :

• Cash and cash equivalents - GH¢10,274 (CR)

• Other assets - GH¢7,470 (CR)

• Other liabilities - GH¢21,721 (CR)

d) Reclassifications from other equity investments:

• Investment in Associates – (Bank - GH¢3,876; Subsidiary - GH¢1,481)

• Available for sale investments – (Bank - GH¢4,347; Subsidiary - GH¢61)

e) Recognition of exchange differences - GH¢6,747 (DR).

f) Reclassification of national fiscal stabilisation levy from other liabilities to income tax - GH¢491

g) Recognition of employee benefits obligations - GH¢31,350 (CR).

h) Reversal of excess transfer to statutory reserve - (Bank: GH¢9,058 (DR); Subsidiary - GH¢739 (DR))

I) Impact of above adjustments on retained earnings:

• Employee benefit obligations - GH¢31, 350 (DR)

• Provision for mistated balances - GH¢39,465 (DR)

• Reversal of excess transfer to statutory reserve - (Bank: GH¢9,058 (CR); Subsidiary - GH¢739 (CR))

• Recognition of exchange differences - GH¢6,747 (CR)

• Depreciation on reclassified assets - GH¢325 (DR)


The effect of the adjustments above on 2010 opening balances is as set out below:

The Group

Assets NotesPublished Financial

Statements Adjustments Restated

GH¢’000 GH¢’000 GH¢’000

Cash and cash equivalents c 149,406 (10,274) 139,132

Government securities - 216,784 - 216,784

Advances to Banks - 186,307 - 186,307

Loans and advances to customers 1,265,517 - 1,265,517

Investments securities: AFS d - 4,408 4,408

Investment in associates d - 5,357 5,357

Investment in other equity securities d 10,628 (9,765) 863

Deferred tax assets - 8,527 - 8,527

Property and equipment a, b 49,655 1,690 51,345

Intangible assets a - 837 837

Other assets b, c 35,842 (10,322) 25,520

--------- --------- ---------

Total assets 1,922,666 (18,069) 1,904,597

------------- ------------- -------------

Liabilities

Deposits from customers - 1,259,470 - 1,259,470

Other liabilities c, e, f 121,671 14,483 136,154

Income tax liabilities f 6,282 491 6,773

Borrowings - 331,800 - 331,800

Employee benefit obligations g - 31,350 31,350

---- --------- ---------

Total liabilities 1,719,223 46,324 1,765,547

------------ -------- -------------

Equity

Stated capital 72,000 - 72,000

Retained earnings i 49,510 (54,596) (5,086)

Fair value reserve - 1,345 - 1,345

Statutory reserve h 36,835 (9,797) 27,038

Credit risk reserve - 43,753 - 43,753

-------- -------- ---------

Total equity 203,443 (64,393) 139,050

----------- ----------- ----------

Total equity and liabilities 1,922,666 (18,069) 1,904,597

====== ===== ======


1 January 2010

The BankAssets Notes Published

Financial Statements

Adjustments Restated

GH¢’000 GH¢’000 GH¢’000

Cash and cash equivalents c 147,103 (10,274) 136,829

Government securities - 215,857 - 215,857

Advances to Banks - 186,307 - 186,307

Loans and advances to customers 1,265,517 - 1,265,517


Investment in associates d - 3,876 3,876

Investment in other equity securities d 8,287 (8,223) 64

Deferred tax assets - 8,527 - 8,527

Property and equipment a, b 49,655 1,690 51,345

Intangible assets a - 837 837

Other assets b, c 35,830 (10,322) 25,508

-------- -------- --------

Total assets 1,917,083 (18,069) 1,899,014

------------ ---------- ------------

Liabilities

Deposits from customers - 1,259,470 - 1,259,470

Other liabilities c, e, f 120,948 14,483 135,431

Income tax liabilities f 6,034 491 6,525

Borrowings - 331,800 - 331,800

Employee benefit obligations g - 31,350 31,350

------------ --------- --------


====== ==== ======

Equity

Stated capital 72,000 - 72,000

Retained earnings i 46,490 (55,335) (8,845)

Fair value reserve - 492 - 492

Statutory reserve h 36,096 (9,058) 27,038


--------- --------- ---------

Total equity 198,831 (64,393) 134,438

---------- ---------- ----------

Total equity and liabilities 1,917,083 (18,069) 1,899,014

====== ===== ======


Prior Year Adjustments (cont’d)

31 December 2010 (AmountdisclosedinGH¢’000)

a) Recognition of employee benefit obligations - GH¢33,336. Actuarial gain - GH¢396 (CR) and deferred tax GH¢99.

b) Reclassification of intangible assets from property and equipment - GH¢789

c) Reclassification of property and equipment from other assets – (Cost - GH¢5,172 (DR); Net book value - GH¢1,471).

d) Reclassifications from other equity investments:

• Investment in Associates – (Bank - GH¢3,876; Subsidiary - GH¢1,481)

• Available for sale investments – (Bank - GH¢4,113; Subsidiary - GH¢48)

e) Customer deposit adjustments:

• Current, savings and time deposit accounts - GH¢10,563 (CR).

• Omission of late entries in customer forex deposit accounts - GH¢863 (DR).

• Reclassifications from customer deposit accounts- GH¢926 (DR).

f) Additional transfer to statutory reserve – Bank - GH¢10,142 (CR); Prior year adjustments to statutory reserve –

Bank - GH¢9,058 (DR); subsidiary - GH¢739 (DR) and reversal of transfer to statutory reserve in subsidiary’s books -

GH¢167 (DR)

g) Cash and cash equivalents:

• Reclassification of nostro balances and items in course of collection - GH¢ 50,579 (DR)

• Provision for misstated balances - GH¢10,410 (CR)

• Reclassification of Clearing Secretariat balances - GH¢18,400 (CR)

• Reclassifications from customer deposits and other assets - GH¢ 1,132 (CR)

• Late entries - GH¢ 9 (DR)

h) Advances to Banks:

• System migration differences - GH¢1,230 (CR).

• Reclassification of nostro balances and items in course of collection - GH¢50,579 (CR)

i) Loans and Advances to Customers

• Reversal of duplicated interest in suspense on advances written off - GH¢2,387 (CR)

• Impairment loss on staff loans as a result of death, termination and retirement - GH¢5,869 (CR)

• Late entries - GH¢70 (CR)


Prior year adjustments (cont’d)

j) Other assets:


• Fair valuation of staff loans – GH¢7,367 (DR)

• Reclassification to property and equipment - GH¢5,172 (CR)

• Overstatement in staff costs - GH¢2,657 (DR)

• Late entries - GH¢1,772 (CR)

• Understatement of accrued income on 2 year bond - GH¢445 (DR)

• Interest on Golden Jubilee Bond of GH¢243 (DR)

• Reclassification from other liabilities - GH¢10,467 (DR)

• Write-off of unrecoverable balances - GH¢1,105 (CR)

• Recognition of 2010 rent expense - GH¢367 (CR)

• Reclassifications to cash and cash equivalents - GH¢205 (DR)

k) Other liabilities:

• Prior year adjustments - GH¢21,721 (CR), Subsidiary (GH¢25 (DR))

• Reclassification from cash and cash equivalents - GH¢18,400 (DR)

• Reclassification to other assets - GH¢10,467 (CR)

• Fair valuation of staff loans – GH¢7,367 (CR)

• Reversal of unrealized exchange gain - GH¢6,748 (DR)

• Reclassification of National Fiscal Stabilization Levy from other liabilities to income tax liabilities

(Bank GH¢5,009 (DR); Subsidiary - GH¢48 (DR)).


• Overstatement of other liabilities - GH¢3,404 (DR)

• Reversal of over accrual of staff performance award of GH¢2,818 (DR)

• Provision for pension claim- GH¢1,093 (CR)

• Late entries - GH¢970 (DR)

• Reversal of rent expense - GH¢110 (CR)

l) Interest income:

• Reversal of duplicated interest in suspense - GH¢2,387 (DR).

• Understatement of accrued income on 2 year bond - GH¢445 (CR)

• Interest on Golden Jubilee Bond of - GH¢243 (CR)

m) Operating expenses:

• Customer deposits adjustments - Current, savings and time deposit accounts - GH¢10,565 (DR)

• Overstatement of staff loans - GH¢5,869 (DR)

• Provision for misstated balances - GH¢3,788 (DR)

• Additional depreciation charges - GH¢3,375 (DR)

• Overstatement of other liabilities - GH¢3,394 (CR)

• Fair valuation of staff loans - GH¢3,312 (DR)



31 December 2010

• Reversal of over accrual of staff performance awards - GH¢2,818 (CR)

• Overstatement of staff costs - GH¢2,658 (CR)

• Provision for employee benefit obligations- GH¢2,382 (DR)

• Balances considered not recoverable - GH¢1,241 (DR)

• System migration differences - GH¢1,230 (DR)

• Rent expense and provision against balance on sun cleanup suspense account - GH¢465 (DR)

• Reclassification from interest expense - GH¢383

• Reclassification from fees and commission expense - GH¢85

n) Fair valuation of staff loans in interest income and staff costs of GH¢3,312 (CR)

o) Tax adjustments resulting from tax audit for the period 2004 to 2009

• Corporate tax liability – Bank - GH¢6,034 (DR) ; Subsidiary - GH¢248 (DR)

• National fiscal stabilization levy – Bank - GH¢491 (DR); Subsidiary - GH¢25 .

p) Reclassification of unlisted equity securities and pension case investments from provision for pension claim - GH¢228

and GH¢865 respectively.

q) Share of associates post tax profits - GH¢3,173 (DR)

r) Difference in deferred tax asset - (Bank - GH¢1,560 (DR))

s) Difference in income tax liability – Bank - GH¢5,143 (DR); Subsidiary - GH¢ 135 (DR)

t) Overstatement of national fiscal stabilization levy - GH¢1,087 (DR)

u) Recognition of prior year national fiscal stabilization levy - GH¢25 (CR).

v) Reclassification of National fiscal stabilization levy from other liabilities to income tax liabilities (Bank GH¢5,009 (CR);

Subsidiary - GH¢47 (CR)).

w) Dividend income of GH¢1,374 (CR) recognized in accordance with equity accounting for investments in associates.

x) Impact of above adjustments on retained earnings:

• Prior year adjustments to retained earnings – (Bank - GH¢55,335 (DR); Subsidiary – GH¢739 (CR)

• Net adjustments to profit after tax – Group - GH¢5,222 (DR); Bank - GH¢7,430 (DR)

• Additional transfer to statutory reserve - (Bank - GH¢10,142 (DR)

• Reversal of subsidiary statutory reserves - GH¢167 (CR)



31 December 2010

The effect of the adjustments on 2010 financial statement is as set out below:

The Group

Assets Notes Published Financial

Statements


GH¢’000 GH¢’000 GH¢’000

Cash and cash equivalents g 328,737 20,646 349,383

Government securities p 452,524 865 453,389

Advances to Banks h 231,515 (51,809) 179,706

Loans and advances to customers i 1,003,682 (8,326) 995,356


Investment in associates d, q, w - 7,156 7,156

Investment in other equity securities d, p 10,153 (9,290) 863

Deferred tax assets a, r 3,284 1,461 4,745

Property and equipment b, c 54,002 682 54,684

Intangible assets b - 789 789

Other assets j 28,925 5,499 34,424

----------- ----------- -----------

Total assets 2,112,822 28, 166 2,084,656

------------ ------------ ------------

Liabilities

Deposits from customers e 1,575,281 8,774 1,584,055

Other liabilities k 182,418 7,124 189,542

Income tax liabilities o, s, t, u, v 31,580 (8,082) 23,498

Borrowings - 73,125 - 73,125

Employee benefit obligations a - 33,336 33,336

------------ ------------ ------------


====== ====== ======


The Group

Notes Published Financial

Statements


GH¢’000 GH¢’000 GH¢’000

Equity

Stated capital - 72,000 - 72,000

Retained earnings x 83,758 (69,793) 13,965

Fair value reserve - 1,652 - 1,652

Statutory reserve f 50,861 178 51,039


Other Reserves - 297 297

---------- ---------- ----------

Total equity 250,418 (69,318) 181,100

---------- ---------- ----------

Total equity and liabilities 2,112,822 28,166 2,084,656

====== ====== ======

The Bank

Assets Notes Published Financial

Statements


GH¢’000 GH¢’000 GH¢’000

Cash and cash equivalents g 325,566 20,646 346,212

Government securities p 451,596 865 452,461

Advances to Banks h 231,515 (51,809) 179,706

Loans and advances to customers i 1,003,682 (8,326) 995,356

Investments securities: AFS d - 4, 113 4, 113

Investment in associates d, q, w - 3, 876 3, 876

Investment in other equity securities d, p 7,824 (7,760) 64

Deferred tax assets a, r 3,284 1,461 4,745

Property and equipment b, c 54,002 682 54,684

Intangible assets b - 789 789

Other assets i 28,856 5,499 34,355

--------- ------- ---------

Total assets 2,106,325 (29,964) 2,076,361

====== ===== ======

31 December 2010 (cont’d)




The Bank

Liabilities Notes Published Financial

Statements


GH¢’000 GH¢’000 GH¢’000

Deposits from customers e 1,575,281 8,774 1,584,055

Other liabilities k 181,574 7,198 188,772

Income tax liabilities o, s, t, v 31,196 (7,746) 23,450

Borrowings - 73,125 - 73,125

Employee benefit obligations a - 33,336 33,336

------------ --------- ----------


====== ===== ======

Equity

Stated capital - 72,000 - 72,000

Retained earnings x 80,235 (72,907) 7,328

Fair value reserve - 812 - 812

Statutory reserve f 49,955 1,084 51,039


Other Reserves - 297 297

---------- ---------- ----------

Total equity 245,149 (71,526) 173,623

---------- ---------- ----------

Total equity and liabilities 2,106,325 29, 964 2,076,361

====== ===== ======




The Group

Notes Published Financial

Statements


GH¢’000 GH¢’000 GH¢’000

Interest income l, n 387,483 1,613 389,096

Interest expense m (103,195) 383 (102,812)

---------- ------- ----------

Net interest income 284,288 1,996 286,284

---------- ------- ----------

Fees and commission income 48,561 - 48,561

Fees and commission expense m (2,765) 85 (2,680)

--------- --------- ---------

Net fees and commission income 45,796 85 45,881

-------- -------- --------

Net trading income (3,091) (3,091)

Other income w 3,806 (1,374) 2,432

-------- ---------- --------

Net trading and other income 715 (1,374) (659)

Total Income 330,799 707 331,506

Impairment charge (70,931) - (70,931)

Operating expenses m (168,556) (23,825) (192,381)

---------- ---------- ----------

Operating Profit 91,312 (23,118) 68,194

---------- ---------- ----------

Share of post-tax profit of associates - 3,173 3,173

---------- ---------- ----------

Profit before income tax 91,312 (19,945) 71,367

---------- ---------- ----------

Income tax expense o, r, ,s, t (35,210) 14,723 (20,487)

---------- ---------- ----------

Profit after tax 56,102 (5,222) 50,880

Net gain on investments in equity Instruments

designated at fair value through other

comprehensive income - 307 - 307

Actuarial loss - gain a - 396 396

Deferred tax on actuarial loss - gain a - (99) (99)

------- -------- --------

Total comprehensive income for the year 56,409 (4,925) 51,484

===== ==== ====




The Bank

Notes Published

Financial

Statements


GH¢’000 GH¢’000 GH¢’000

Interest income l, 387,483 1,613 389,096

Interest expense m (103,195) 383 (102,812)

---------- ---------- ----------

Net interest income 284,288 1,996 286,284

Fees and commission income 48, 561 - 48, 561

Fees and commission expense m (2,765) 85 (2,680)

--------- --------- ---------

Net fees and commission income 45,796 85 45,881

-------- -------- --------

Net trading income (3,091) - (3,091)

Other income 2,208 - 2,208

---------- ---------- ----------

Net trading and other income (883) - (883)

-------- -------- ----------

Total income 329, 201 2, 081 331, 282

Impairment charge (70,931) - (70,931)

Operating expenses m (167,915) (23,825) (191,740)

---------- ---------- ----------

Operating Profit 90,355 (21,744) 68,611

---------- ---------- ----------

Share of post-tax profit in associated company - - -

Profit before income tax 90,355 (21,744) 68,611

Income tax expense o, r, ,s, t (34,924) 14,315 (20,609)

---------- ---------- ----------

Profit after tax - 55,431 (7,429) 48,002

Net loss/ gain on investments in equity

Instruments designated at fair value through

other comprehensive income 320 - 320

Actuarial loss/gain a - 396 396

Deferred tax on actuarial loss/gain a - (99) (99)

---------- ---------- ---------

Total comprehensive income for the year 55,751 (7,132) 48,619

===== ===== ====


Appendix 1

SHAREHOLDERS’ INFORMATION

Number of shareholders

The Bank had 96,805 ordinary shareholders at 31 December 2011 distributed as follows:

Category No. of holders No of shares % of shares held

1-1,000 88,716 19,859,274 7

1,001-5,000 7,037 15,551,018 6

5,001-10,000 627 4,692,731 2

10,000 and over 425 224,896,977 85

------- -------------- -------

Total 96,805 265,000,000 100

==== ======== ====

Directors’ Shareholding

The Directors named below held the following number of shares in the Bank at 31 December 2011:

No. of shares % Holding

Simon Dornoo 81,214 0.031

Adelaide Mary Benneh (Mrs) 1,000 0.0004

Fritz Gockel (Dr) 1,000 0.0004

Joshua Kwaku Kyeremeh Peprah 1,000 0.0004

Lovelace Prempeh 4,000 0.0015

Charlotte Osei 167 0.0001

-------- --------

88,381 0.0338

===== ======

20 Largest Shareholders

Share Percentage

Holding Holding

Social Security and National Insurance Trust 79,000,000 29.81

GH/GV Act. By Ministry Of Finance &Economic Planning 56,608,613 21.36

SCBN/Northern Trust Global Services Limited 17,397,904 6.57

Daniel Ofori 10,095,736 3.81

SCBN/SSB& TAS Custodian Re SQM Frontier Africa 5,208,747 1.97

SCBN/PICTET Africa Non Tax 6275J 4,364,490 1.65

GCB Staff Provident Fund 2,996,695 1.13


agents & correspondent banksagents & correspondent banks

20 Largest Shareholders (cont’d)

STD NOMS (TVL) Pty Standard Bank London Plc client Account 2,282,000 0.86

Ghana Reinsurance Company Limited 1,799,651 0.68

SCBN/SSB Teacher Retirement Systems of Texas FD 1,790,000 0.68

SCBN/Northern Trust co AVFC 6314B 1,667,551 0.63

Ghana Cocoa Board 1,600,000 0.60

SCBN/SSB Eaton Vance Structure Emerging Mkt. Fund 1,453,841 0.55

SCBN/SSB Eaton Vance Tax-Managed Emerging Mkt. Fund 1,384,370 0.52

SCBN/Epack Investment Fund Ltd-Transaction Account 1,300,000 0.49

SCBN/SSB London Care of SSB LDN. Inv Assets Mgt (PTY) 1,250,000 0.47

SCBN/CITIBank NY Eaton Vance International (Ireland) FDS Plc-

Eaton Vance Int (IRE) PPA Emer Mkts EQT FD 1,245,700 0.47

SCBN/CITI NY Advance Series Trust-AST Para Emg. Mkts 1,190,800 0.45

Tema Oil Refinery 1,000,000 0.38

SCBN/BB Mauritius UBS AG LDN. Nubuke AFR Multi STR Master 946,308 0.36

--------------- -------

194,582,406 73.44

--------------- -------


agents & correspondent banksagents & correspondent banksUNITED KINGDOM

Agents

1. UnityLink Financial Services Ltd.

158-160 Balham High Road

London SW12 9 BN,

Head Office

Tel: 0044-20-8772 2160

Fax: 0044-20-86753-284, 0044-20-

82397-125

Email: [email protected]

2. UnityLink Financial Services Ltd.

10 High Street, Harlesden, London

NW 10 4 LX


Tel: 0044-20-88381166 / 20-84539780

Fax: 0044-20-88382266

3. UnityLink Financial Services Ltd

691 Seven Sisters

London Road, NW 15

5LA, London

Tel: 0044-20-82111668

Fax: 0044-20-88094418


4. UnityLink Financial Services Ltd

465 Green Street, Upton Park E13

9AX London


Tel: 0044-20-7722160

Fax: 0044-20-84727113

5. Samba International Ltd

69A London Road, Forest Hill, London

SE23 3TY


Tel: 0044 (0) 2073261955

Fax: 0044 (0) 20 7100 9490

6. Global Expatriate Services (GES)

313 Tudorleaf, Business Centre

2-8 Fountayne Road, N15 4QL, United

Kingdom


Website: www.gesmoney.com

Tel: 0044-208 8855 200

SPAIN

Agent

Money Exchange, S.A

P. Santa Maria de la Cabeza

12 28045 Madrid, Spain

Dir. Tel: +34 911 510366 /

+34 911 510229

Mobile: +34 649879609

Tel: +34 917617170 ext. 289

Fax: +34 915308805

www.moneyspain.net

E-mail: [email protected]

Skype: money.exchange.eur

GERMANY

Agent

1. Universal Money Transfer Gmbh

Wandsbeker Chaussee 29

22089 Hamburg, Germany

Tel: +49-40-20007919 /0048 - 40-

30398-6540

Fax: +49-40-20007939 / 40-303986548

E-mail: [email protected]

HOLLAND

Agent

1. Unity Money Services BV

Bijlmerdreef 1129 A-1131A

1103 TT Amsterdam,

The Netherlands,

Tel: 0031 206 957 122

Fax: 0031 206 904 956



MOROCCO

Agent

1. Western Union Morocco/WA Office

14 Avenue Mers Sultan

20000 Casablanca

Tel: +212(0)522-4284-43

Fax: +212(0)522-4284-15

GSM: +212(0)660-4364-27

GHANA

Agent

1. First African Savings & Loans Ltd

124 Kwame Nkrumah Avenue

P. O. Box AN 11337

Accra North

Tel: 233-302-222000 / 302-230807

Fax: +233-302-221471


[email protected],

[email protected]

Correspondent Banks

1. Ghana International Bank Plc

st 67 Cheapside, 1 Floor, Regina House

London EC2V 6AZ England

Swift ID: GHIBGB2L

2.National Westminster Bank Plc

London

BIC: NWBKGB2L

3. HSBC (MIDLAND BANK)

Plc, London

BIC: MIDLGB22

EUROPE

Correspondent Banks

1. Commerzbank AG

Frankfurt AM Main

SWIFT: COBADEFF

2. Royal Bank of Scotland Plc

London, GB

Swift ID: RBOSNL2A

3. Western Union Network (France)

48150 Rue de la Victoire, 75109

Paris France

UNITED STATES OF AMERICA

Agents

1. SFB Capital Systems LLC

1031, Sterling Road, Suite 201

Herndon, VA 20170

Tel: 001 (703)599-6975

Fax: 001 703 729 0102


2. MoneyGram International

Money Transfer,

MoneyGram Payment Systems Inc.

1550 Utica Avenue South

Minneapolis, MN 55416, USA

Email: www.moneygram.com

Tel: +1720 568 8299, +1720 5688 764

Direct call centre: +1 720 568 8340; +1

720 568 8341

Fax: 0013 03716 6803

3. VIGO Remittance Corp.

1300 Sawgrass Corporate

Parkway, Suite 110,

Sunrise, Florida FL 33323 USA


Tel: 001 954 625 6741,

001 720 332 7518

Fax: 001 954 835 1427

4. Familylink Money Transfer Inc.

Transfers Inc. U.S.A.

1205 College Avenue,

Bronx N.Y. 10456, USA

Tel: 001 718 293 6280

Fax: 001 718 293 1790

Email:[email protected]

5. Western Union

100 Summit Ave

Montvale, New Jersey 07645

USA

Tel: +1-201-263-6384

Fax: +1-201-263-5949

CORRESPONDENT BANKS

1. Citibank N. A.

th 16 Floor, Zone Street

New York, N. Y. 10043, USA

BIC: CITIUS 33

2. Deutsche Bankers Trust

Company Americas

1 Bankers Trust Plaza


BIC: BKTRUS33

head office divisons & departments


3. VIGO Remittance Corp.

1300 Sawgrass Corporate

Parkway, Suite 110,

Sunrise, Florida FL 33323 USA


Tel: 001 954 625 6741,

001 720 332 7518

Fax: 001 954 835 1427

4. Familylink Money Transfer Inc.

Transfers Inc. U.S.A.

1205 College Avenue,

Bronx N.Y. 10456, USA

Tel: 001 718 293 6280

Fax: 001 718 293 1790

Email:[email protected]

5. Western Union

100 Summit Ave

Montvale, New Jersey 07645

USA

Tel: +1-201-263-6384

Fax: +1-201-263-5949

CORRESPONDENT BANKS

1. Citibank N. A.

th 16 Floor, Zone Street


BIC: CITIUS 33

2. Deutsche Bankers Trust

Company Americas

1 Bankers Trust Plaza


BIC: BKTRUS33

head office divisons & departments

HEAD OFFICE

P. O. BOX 134, Accra

0302-672852-4

672859-65

664910-18

663161, 663219

Fax: 0302-663964

RISK MANAGEMENT DIVISION

General Mgr, RMD

[email protected]

0302-662420, 666818

Fax: 0302-666818

INSPECTION DIVISION

General Mgr

[email protected]

Tel/fax: 0302-663189

INTERNAL AUDIT DEPT

P. O. Box 134, Accra

[email protected]

0302- 682991, 682994

Fax: 0302- 680667

SECURITY CO-ORDINATOR

P. O. Box GP134, ACCRA

[email protected]

Tel: 0302-664316

0244315420

Fax: 0302-663189

SECURITY CO-ORDINATOR

Kumasi Office/ Northern section

Tel: 03220-81883

RETAIL BANKING DIVISION

General Manager


[email protected]

0302-663930

Fax: 0302-672873

Tel: 0302-673503

SYSTEMS & INFORMATION TECHNOLOGY

General Manager

GCB Tower (Exchange)

[email protected]

0302-246018

Fax: 0302-232671

Help Desk: 0302-232668,

232690, 232849,232850,

Data Centre

[email protected]

0302-257610,232830

257608,232849

257606,257607

Operations Support Dept

[email protected]

028 9673662 – 70,

028-9673675/6,

0289673923/4

Fax: 0302-232757

ELECTRONIC BANKING CENTRE

3rd Floor

GCB Tower Block

P. O. Box 134

Kwame Nkrumah Circle, Accra

[email protected]

Head:Tel/fax: 0302-246028

Call centre: 0302-246025

Office: 0302-246029-30

Fax: 0302-246032

Card Operations Tel: 0302-246150

E-banking 24/7 Call Centre Tel: 0302-246025


ACCOUNTS DIVISION

[email protected]

Dy. Head Tel: 0302- 673498

Book Keeping 0302- 664581

Final Accounts 0302- 678452

Nostro Reconciliation 0302- 663873

Bank of Ghana Unit Tel/Fax: 0302- 672871

Central Accounts Reconciliation Tel/Fax: 0302- 665059

CLUSTERING DEPT.

6th Floor

GCB Tower Block

Kwame Nkrumah Circle, Accra

[email protected]

Mgr: 0302-235436

Dir. line: 0302-233933

028 9555 721/ 028 9675000-3

0302-935507

Fax: 0302-233933

HUMAN RESOURCE DIVISION


[email protected]

0302-673495, 662548

663913

Fax: 0302-673492

CLINIC

2nd Floor Liberty House


[email protected]

0302- 666631-7

TRAINING SCHOOL

P. O. Box 93, Nungua

Accra

[email protected]

0302-71252

Fax: 0302-712500

SUPPORT SERVICES DIVISION

Head Office, Accra

[email protected]

Tel: 0302-672870/2

0302-663480

Fax: 0302-672874

TREASURY DIVISION

Treasury Secretariat

[email protected]

0302-664232

Fax: 0302-673491

Investments & Securities

[email protected]

0302-666645

Share Registry

[email protected]

0302-668656,

Tel/Fax: 668712

Treasury Back Office

[email protected]

[email protected]

0302-257612, 257476

Fax: 0302-257609

Insurance

[email protected]

Tel/Fax: 0302-664889

Head Office Clearing

0302-663096

Fax: 0302-674915

Dealing

[email protected]

0302-662752

Fax: 0302-672858,673491

254606-8

LEGAL SERVICES DIVISION

GCB Tower General Manager


[email protected]

0302-242436.

Ext 2423

Fax: 0302-242436, 0302-255465

INTERNATIONAL BANKING DIVISION

P.O. Box 871, Accra

[email protected]


International Banking Secretariat

(GCB Tower)

0302-257615,

Ext: 2123/4

Fax: 0302- 246039

Trade Services Department

[email protected]

0302-246031,

Fax: 0302- 246042

Global Transfer Unit (including The Fast International

Transfer Payment Centre)

[email protected]

0302- 246040

Fax: 0302-246033

SWIFT Department

[email protected]

Tel: 0302-220731

Fax: 0302-246041

Swift Code: GHCBGHAC

Link 2Home Dept

[email protected]

0302-257617

Fax: 0302-246033

SMEs DIVISION

P. O. Box 134

Head Office, Accra

[email protected]

Tel:0302-257613, 246154

Fax: 0302-246155

Takoradi Office

Tel: 0244-011895

Kumasi Office

Tel: 0244-514-611, 0244104467

CUSTOMER SERVICE CENTRE


[email protected]

Mgr: 0302-681538

Mobile – 0264270236

Dy. -0302-681517

Mobile: 0202111177

Call Centre: 0302-681531/681533

PLANNING & RESEARCH DIV.


[email protected]

Tel/Fax: 0302-244668

Ext No. 2201

Accra High Street

P.O. BOX 2971,

Accra

[email protected]

Retail Mgr: 0302-662337

Ops. Mgr: 0302-672857

Fax: 0302-673496

Kotoka International Airport

c/o P.O. BOX 2971, Accra

(Agency)

Kotoka Int Airport (Aviance Agency)

-do-

Diamond House PMMC (Agency)

P.O. Box 2971, Accra

Dir.Line : 0302-662094

0302-664931(Ext. 147)

Royal Banking

Private Mail Bag

Osu

[email protected]

Tel: 020 9450778

Fax: 0302-782812


ACCRA ZONE

Area Manager’s Office

P.O. Box NT 96

Accra New Town

[email protected]

0302-222641, 225928

Mgr: 0302-249772

Fax: 0302-236671

Accra New Town

[email protected]

Mgr/Fax: 0302-236935,

Office: 0302- 222641

Zonal Legal Officer

-do-

0302-249773

Fax: 258448

Kwame Nkrumah

P.O. Box AN 5709,

Circle Branch

Accra-North

[email protected]

0302-246008-15

Mgr: 257616

Fax: 246035

Liberty House


[email protected]

0302-666631-7

Mgr: 0302-663556

Fax: 0302-663556

Republic House

P.O. Box 5550, Accra-North

[email protected]

0302-680355, 681810, 681862

Fax: 0302-681812

Dome Branch

Private Mail Bag,

Atomic Post Office

0302-420039/420041,

Fax: 420040

[email protected]

Ring Road West

P. O. Box ST 498,

Kaneshie, Accra

[email protected]

0302-224703, 225605

Fax: 225270

Kaneshie Market

P.O. Box 171, Kaneshie

[email protected]

0302- 229005/227568

Fax: 0302-227568

Kaneshie Industrial Area

P. O. Box 12513, Accra North

[email protected]

0302-220551/220591

Fax: 0302-220591

Derby Avenue

P.O. Box GP4832, Accra

[email protected]

0302-664191/2

Fax: 0302-665847

Boundary Road

P.O. Box 819, Accra

[email protected]

Tel/Fax: 0302-672402

Osu

P.O. Box 0212, Osu, Accra

[email protected]

Tel/Fax: 0302-774456,

Mgr: 020-2011912


Ministries

P.O. Box M.88, Accra

[email protected]

0302-673950

Fax: 0302-674150

Korle-Bu


0302-666524/666521

[email protected]

Fax: 0302- 666524

Trade Fair Site

P.O. Box 198,

Trade Fair Centre

La

[email protected]

0302-778274, 774270

Fax: 0302-778275

Burma Camp

P.O Box B.C. 268

Burma Camp, Accra

[email protected]

0302-784182/0289546175

Fax: 0302-770341

Makola Market Branch


[email protected]

Tel/Fax: 0302-682278

Kasoa Main

P. O. Box KS 557, Kasoa

[email protected]

0302-862429/862431

Fax: 0302-862430

Kasoa Market

P. O. Box KS 557, Kasoa

[email protected]

Mgr: 0302-920448/910409

Fax: 0302-298080

Kisseiman

P. O. Box AT 1946

Achimota

[email protected]

0302-410444/020-8127357

Tantra Hill

PMB, Tantra Hill

[email protected]

Tel: 0302-413094, 412817

Tel/Fax: 0302-412822

Nima

P.O. Box, AN 5288

Accra-North

[email protected]

Mgr: 0302-222439/222441

Fax: 0302-222445

Dansoman

PMB 17,

Dansoman Estates

[email protected]

Tel: 0302-301409/301410

Fax: 0302-301454

Accra North

P.O.Box 5205

Accra-North

[email protected]

Mgr: 0302-253055

221990

Fax: 0302-250245

Abelenkpe

PMB, Achimota School

Accra

[email protected]

0302-769142/769135

Fax: 0302-769137


TEMA ZONE


P.O. Box 152, Tema Area

[email protected]

Mgr/Fax: 0303-204824

0303-201074

Zonal Legal Office

-do-

0303-212037

Tema Main

P.O. Box 152, Tema

[email protected]

Office /Fax- 0303-204346

Mgr: 202760, 202768/9

Tema Agency (Long Rm.)

-do-

0303-204768 Tema Agency (Golden Jubilee)

Tema Market

P.O. Box CO173, Tema

[email protected]

0289104444

Mgr./Fax: 0303-204763

Office: 0303-201422/202861

Evergreen Agency

0303-212094

Tema Ind. Area

P.O. Box 8202,

Tema Ind Area

[email protected]

Mgr/Fax.-0303-306082

Main Line: 302818/300575

Tema Fishing Harbour

P.O. Box 281,

Fishing Hbr.

[email protected]

Office: 0303-202413

Fax: 0303-202344

[email protected]

Tema Safe Bond

P. O. Box CO 1737

[email protected]

Mgr: 0303-215588

Tema Office: 0303-215576

Fax: 0303-215591

Ashaiman

P.O. Box AS 199, Ashaiman

[email protected]

Mgr/Fax: 0303-306606

Office: 0303-307691

Legon

P.O. Box LG 17, Legon

[email protected]

Mgr-0302-513131

Office: 0302-500644

Fax: 0302-500854

Madina

P.O. Box 431, Madina

[email protected]

Mgr-0302-501240

Office: 501241

Fax: 0302-500570


Aburi

P.O. Box 98, Aburi

[email protected]

Office: 03428-22043

Fax: 03428-22045,

Mampong-Akwapim

P.O. Box 54, Mampong-Akwapim

[email protected]

Office: 03427-22049

Fax: 03427-22218

Akropong Akwapim

P.O. Box 83, Akropong Akwapim

Office: 028-9534865

[email protected]

Somanya

P.O. Box 78, Somanya

Office: 03420-91421/ 03420-91428

[email protected]

Fax: 027-8787057

Akosombo

P.O. Box 24, Akosombo

[email protected]

Mgr: 03430-21142

Office: 03430-20472

Fax: 03430-20530

Akuse

P. O. Box 40, Akuse

[email protected]

Office: 03420-91311

Fax: 0244392189

Tetteh Quarshie Circle

Private Mail Bag, LG14, Legon

[email protected]

Mgr: 0302- 506221/

024-4284764

Office: 0302-506198/9

Fax: 0302-506223

Ada

P. O. Box 55, Ada Foah

[email protected]

Mgr: 0303-910412

Office: 0303-910411/3

Spintex Road

P.O.Box 152 , Spintex

[email protected]

Mgr: 0302-816967

Office: 0302-816966

Fax: 0302-816968

Nungua

P.O. Box TN 30, Nungua

[email protected]

Office: 0302-715351/715365

Fax: 0302-715366

Mgr: 0302-715352

Adenta Shopping Centre

P. O. Box AF 2070, Adenta

[email protected]

Mgr: 0302-522541

Office: 0302-522543

Fax: 0302-522542


KOFORIDUA ZONE


P.O. Box KF 286, Koforidua

[email protected]

Mgr: 03420-26790

26791

Fax: 03420-23042

Koforidua

-do-

[email protected]

03420-23049, 23059

26832

Fax: 03420-22525

New Tafo

P.O. Box 42, New Tafo

[email protected]

03420-24772, 0244329645

Suhum

P.O. Box SU 155, Suhum

[email protected]

03425- 22370

Fax: 03425-22121

Asamankese

P.O. Box 167,

Asamankese

[email protected]

Mgr: 03420-91135,

Ops Mgr: 03420-91011

Fax: 03020-93084

Akim Oda

P.O. Box 364, Akim Oda

[email protected]

Mgr/fax: 03429-22697

03429-22124, 22869

Kade

.O. Box 63, Kade

[email protected]

0244342494

Fax: 0244394381

Nsawam

P.O. Box NW 280, Nsawam

[email protected]

03421-22062,

Fax: 03421-22560

Kibi

P.O. Box K97, Kibi

[email protected]

Mgr: 03420-24112

Anyinam

P.O. Box 46, Anyinam

[email protected]

Mgr: 0208179856

Ops Mgr: 0244614613

Office: 03420- 96697

Nkawkaw

P.O. Box 272, Nkawkaw

[email protected]

03431-22105, 22222

Mpraeso

P.O. Box 56, Mpraeso

[email protected]

03420-99684, 99610

Donkorkrom

P.O. Box 11, Donkorkrom

[email protected]

Mgr.:03424-22039/

03420- 96727

Office/Fax: 03424-22040

Konongo

P.O. Box 137, Konongo

[email protected]

Mgr: 03221-24336, 25866,

Tel: 03221-24276,

Fax: 03221-24209

Agogo

P.O. Box 74, Agogo

[email protected]

03220-92184

Juaso

P.O. Box 51, Juaso

[email protected]

03220-94834


HO ZONE


P.O. Box 164, Ho

[email protected]

03620-28251, 26543

Fax: 03620-27598

Ho Branch

P.O. Box 164, Ho

[email protected]

03620 -26436

28395, 27597, 27067

Mgr: 28905

Fax: 03620-28396

Ho Market Branch

P. O. Box HP 841

Ho Market

[email protected]

Mgr. /Fax: 03620-26491

03620-26459

Ho Polytechnic

P. O. Box 164, Ho

[email protected]

Mgr: 03620-27472

03620-27451, 27441

Fax: 03620-27446

Ho Clearing Secretariat

P.O. Box 164, Ho

03620-28882

Hohoe

P.O. Box 178, Hohoe

[email protected]

03627-22986/03620-95068

Mgr: 03627-22070

Fax: 03627-22432

Hohoe Clearing Secretariat

P. O. Box 178, Hohoe

03627-22431/03620-95044

Dzodze

P.O. Box 88, Dzodze

[email protected]

03620-91227

Aflao

P.O. Box AF12, Aflao

[email protected]

Mgr: 03625-31311

GCNET: 03625-31119

Fax: 03625-30451

03625-30207

Abor

P. O. Box 48, Abor

[email protected]

024-4313679

027-7808118

Fax: 027-8787049

Keta

P.O. Box KW133, Keta

[email protected]

Mgr: 03626-42663

Fax: 03626-43053

Office: 03626-42664

Akatsi

P.O. Box 39, Akatsi

[email protected]

Mgr: 03626-44401,

Office: 03626-44754

Fax: 03626-44499

Sogakope

P.O. Box 8, Sogakope

[email protected]

Mgr: 027-7811195,

Fax: 027-8787062


Kpando

P.O. Box 70, Kpando

[email protected]

03623-50203,

Mgr/Fax: 03623-50984

Peki

P.O. Box 12, Peki

[email protected]

Mgr: 0244313094,

027-7809678

Fax: 027-8787020

Jasikan

P.O. Box 85, Jasikan

[email protected]

Mgr: 05425-98548

Fax: 027-8787010

Kadjebi

P.O. Box 27, Kadjebi

[email protected]

Mgr: 0249332765

Fax: 027-8787050

Nkwanta

P. O Box 56

Nkwanta

[email protected]

Mgr: 0276229119,

0244334835

0277808121

Fax: 0277878051

Dambai

P. O. Box DM38, Dambai

Volta Region

[email protected]

Mgr: 0242-214388

0247-262517

Fax: 027-8787009

KUMASI ZONE


c/o

P.O. Box SE 1212

Suame, Kumasi

[email protected]

03220-31604,

Fax: 03220-23512

Area Manager’s Secretariat

-do-

[email protected]

03220-29001, 82812

Clearing Secretariat

[email protected]

03220-29002

GCNet

03220-32525

Valuation

Tel/Fax: 03220-26468

Legal

03220-27587

Corporate Office

P. O. Box KS 14751, Kumasi

03220-81884

Fax: 03220-81885

SMEs Office

-do-

03220-81886,

0244514611, 0244104467

Kumasi Main

P.O. Box 852, Kumasi

[email protected]

03220-25291-3

Mgr: 03220-37303

Fax: 03220-24569


Ahinsan

P.O. Box 8818, Ahinsan, Kumasi

[email protected]

03220-28255, 33452

Mgr: 03220-31964

Fax: 03220-24129

Kejetia


[email protected]

03220-31446

Mgr: 03220-44660

Fax: 03220-22692

Asafo Market


[email protected]

03220-23514, 45252

Mgr: 03220-45251

Fax: 03220-36721

Harper Road

P. O. Box KS 14751, Kumasi

[email protected]

03220-81880

Mgr: 03220-81881

Fax: 03220-81882

Jubilee House

P.O. Box SE 1212,

Suame Kumasi

[email protected]

03220-30819

Mgr: 03220-26366

Fax: 03220-25070

Kwame Nkrumah

Univ.of Sci. & Tech. Kumasi

Private Post Bag,

[email protected]

03220-60153, 62135

Mgr: 03220-62136

Fax: 03220-62137

Ejura

P.O Box 24, Ejura

[email protected]

Tel: 03220-97147

03222-22006

Yeji

P.O. Box 29, Yeji

[email protected]

Tel/Fax: 03527-22008

Obuasi

P.O. Box 290, Obuasi

[email protected]

03225-40255

03225-42669

Bekwai Ashanti

P.O. Box 127, Bekwai Ash.

[email protected]

03224-20143

Mgr: 03224-20204

Fax: 03224-20144

Dunkwa-On-Offin

P.O. Box 228

Dunkwa-On-Offin

[email protected]

03322-28236,

Fax: 03322-28673

New Edubiase

P.O. Box 42, New Edubiase

[email protected]

03220-94702

New Offinso

P.O. Box 60, New Offinso

[email protected]

03220-91590


Nkawie

P.O Box 69, Nkawie

[email protected]

03220-92192

Mampong Ashanti

P.O. Box 94, Mampong- Ashanti

[email protected]

03222-22329

Fax: 03222-22327

Effiduase Ashanti

P.O. Box 10, Effiduase

[email protected]

03220-92173

Fax: 03220-92173

Ejisu

P.O. Box 49, Ejisu

[email protected]

03220- 92480, 99449

Fax – 03220-20183

Agona Ashanti

P.O. Box 16,

Agona Ashanti

[email protected]

03220-91820

Sefwi-Wiawso

P.O. Box 59, Sefwi-Wiawso

[email protected]

03120- 94488

Mgr: 0208171152

0542423440

Tech Junction

P. O. Box UP1151, KNUST,

Kumasi

[email protected]

Mgr: 03220-64830,

Office: 03220-64832 / 64800

Fax: 03220-64831

Bantama

P. O. Box PT 80, Kumasi

[email protected]

Mgr: 03220-48820

Office/ Fax: 48823

TAMALE ZONE


P.O. Box 228, Tamale

[email protected]

03720-26415, 25715

Fax: 22765

Zonal Valuation Office

P. O. Box 228, Tamale

3720-27276

Tamale Clearing Secretariat

P. O. Box 228,

Tamale

03720-22999

Tamale Main


[email protected]

Mgr: 03720-22827

Fax: 03720-22455

Office: 03720-26400,

26406, 22755, 25745

Tamale Market


[email protected]

03720-22608

Fax: 03720-22608

Tamale Hospital Road

P. O.Box TL. 2240, Tamale

[email protected]

Mgr/Fax: 03720-27279

Office: 27278

Bolgatanga

P.O. Box 12, Bolgatanga

[email protected]

03820- 23462

Fax: 03820-23446

Office: 03820-24961



03820-22500

Bawku

P.O. Box 36, Bawku

[email protected]

Mgr: 027-7809679

Office: 03720-91689

Fax: 027-8787870

Navrongo

P.O. Box 28, Navrongo

[email protected]

Mgr/Fax; 03821-22318

Office: 03821-22390, 027-7809697,

027-8787029

Tumu

P.O. Box 2, Tumu

[email protected]

03920-21214, 91509

Fax: 03920-22420

Lawra

P.O. Box 92, Lawra

lawramgr@gcb,com.gh

03920-24791

03920-21079

Wa

P.O. Box 66, Wa

[email protected]

Office: 03920-22025,

Mgr/Fax: 03920-22039


03920-20501

Bole

P.O. Box 24, Bole

[email protected]

Mgr/Fax: 03725-22006

Office: 03920 -93342

Damongo

P.O. Box DM 40, Damongo

[email protected]

020-6815099

Mgr: 03720-95230

Office: 03920-93486

Yendi

P.O. Box 32, Yendi

[email protected]

Mgr/Fax: 03720-95242

Office: 03720- 95241

Salaga

P.O. Box SL 7, Salaga

[email protected]

Office: 03720-95192

Kete-Krachi

P.O. Box 13, Kete Krachi

[email protected]

03620-91834

Bimbilla

P.O. Box 27, Bimbilla

[email protected]

Mgr.:03720-94356

Office: 03720-24379, 03720-91739

Fax: 03720-23434

Walewale

P. O Box 91, Walewale

[email protected]

03820-94326

027-8787021


SUNYANI ZONE


P.O. Box 34, Sunyani Area

[email protected]

Mgr: 03520-25957

03520-25958, 24084

Fax: 03520-27162

Zonal Clearing Secretariat

P.O. Box 34, Sunyani

03520-23506

Sunyani Main

-do-

[email protected]

03520- 27157

Mgr: 03520-27716

0205881994

Fax: 03520-27087

Sunyani Market

[email protected]

03520-24103

P. O. Box 325, Sunyani

Mgr: 03520-24267

Fax: 03520-24474

Berekum

P.O. Box 115, Berekum

[email protected]

Mgr/ Fax: 03522-22042,

Office: 03522- 22567/22193

Dormaa Ahenkro

P.O. Box: 16, Dormaa Ahenkro

[email protected]

03523-22033,

03520-9612403523-22047

Mgr: 03520-96115

Fax: 027-8787012

Techiman Main

P.O. Box 196, Techiman

[email protected]

03525-22369

Mgr: 03520-91092

Fax: 03525-22048

Techiman Market

P. O. Box TM796, Techiman

[email protected]

03525-22395

Fax: 03525-22394

Wenchi

P.O. Box 49, Wenchi

[email protected]

03520-91445, 027-7808099

Fax: 0278787008

Nkoranza

P.O. Box 44, Nkoranza

[email protected]

03520-47305 /92076

027-7808095

Kintampo

P.O. Box 31, Kintampo

[email protected]

03520-38839, 92047

Mgr: 03520-37306

Fax: 027-8787025

Duayaw Nkwanta

P.O. Box 66, Duayaw Nkwanta

[email protected]

Mgr: 020-912-6053, 027-7808091

Fax: 027-8787005

Bechem

P.O. Box 69, Bechem

[email protected]

03520-92007

03520-92690

Akumadan

P.O. Box 33 Akumadan, Ash.

[email protected]

0244313714

Fax: 027-8787013

Tepa

P.O. Box 103, Tepa, Ash

[email protected]

03220-20900

Fax: 03220- 47100


Hwidiem

P.O. Box 11, Hwidiem

[email protected]

03220-47082

Goaso

P.O. Box 83, Goaso

[email protected]

03520-91815

Fax: 027-8787014

Mim

P.O. Box 33, Mim

[email protected]

03520 -91821

Fax: 027-8787006

Sankore

Private Post Bag, Sankore

[email protected]

Office: 0244313638

Sampa

P. O. Box 90, Sampa, B/A

[email protected]

Mgr: 0271-497-602

0244-737-467

Office: 0244341751

Drobo

P. O. Box 27, Japekrom

[email protected]

0244334836

Fax: 027-700161

TAKORADI ZONE


P.O. Box 475, Takoradi

[email protected]

03120-23072, 22355

Area Mgr: 03120-24948

Fax: 03120-25226

SME

-do-

03120-33994

Corporate Banking

-do-

03120-26700,

Fax: 03120-25226


-do-

03120-23383

Zonal Legal Office

-do-

03120 -29340

Takoradi Main

-do-

[email protected]

03120-22351- 4

Mgr: 03120-23102

Fax: 031 20-23540

GCNET

03120-29103

Royal Banking

03120-21353

Takoradi Harbour


[email protected]

Mgr: 03120-22731

Office: 03120-22534,

Fax: 03120-27309


Takoradi Market Circle


[email protected]

Office: 03120-23569,

Mgr/ Fax: 03120-25370

Sekondi

P.O. Box 101, Sekondi

[email protected]

Mgr/ Fax: 03120-46746

Office: 03120-46511

Mobile: 0244187545

Tarkwa

P. O. Box 90, Tarkwa

[email protected]

Mgr:03123-20394, 024- 7817921

Fax: 03123-20374

Axim

P.O. Box 55, Axim

[email protected]

Mgr/Fax: 03121-22408,

Office: 03121-22256

Half-Assini

P.O. Box 54, Half-Assini

[email protected]

Mgr.: 03121-90159

Dadieso

Private Mail Bag, Dadieso

[email protected]

Mgr: 0244335687

0277801177

Fax: 027900136

Elubo

P. O. Box EL 134, Elubo

[email protected]

Mgr: 03122-22545

Office: 03122-22544

Fax: 03122-22546

GCNET Elubo

-do-

03122-22547

Enchi

P.O. Box 15, Enchi

[email protected]

03120-98614

03120-98648

Samreboi

P.O. Box S40, Samreboi

[email protected]

03120-97520

Prestea

P.O. Box 102, Prestea

[email protected]

Mgr: 03120-92670

Office: 0244313089, 027-7801254

Fax: 0277900138

Bogoso

P.O. Box 42, Bogoso

[email protected]

Office: 0277801256

Mgr: 03120-92655, 027-7801256

Fax: 0277900137


CAPE COAST ZONE


P.O. Box 65, Cape Coast

[email protected]

Fax: 03321-32625

Office: 03321-37887


-do-

03321-37038

Fax: 03321-32625

Cape Coast Main


[email protected]

03321-32813

03321-32354

Mgr: 03321-34253

Fax: 03321-32549

Cape Coast University


[email protected]

03321-32287, 34020

03321- 30069

Fax: 03321-36377

Agona Swedru

P.O. Box 186, Agona Swedru

[email protected]

Office: 03320-20291

Fax: 03320-20414,

Mgr: 03320-21071

Assin Fosu

P.O. Box AF 76, Assin Fosu

[email protected]

Mobile: 027-6793122

03321-91141, 0277811191

Fax: 027-8787061

Mankessim

P.O. Box 78, Mankessim

[email protected]

Mgr: 03321-94026

Office: 03321-91435

Mobile: 020-2011620

Fax: 0277-900113

Winneba

P.O. Box 128, Winneba

[email protected]

03323-21064, 22364

Tel/Fax: 03323-22133

Twifu Praso

P.O. Box TW 84, Twifu Praso

[email protected]

03120-99030

027-7776775 / 0244314810

Fax: 027 7900 124

Breman Asikuma

P.O. Box 60,

Breman-Asikuma

[email protected]

Mgr: 0246-339233

0277777655

Saltpond

P.O. Box SP. 096,

Saltpond

[email protected]

Office: 03321-92003

Mobile: 0277777652

Fax: 0277900089

Abura Dunkwa

P.O. Box 29, Abura Dunkwa

[email protected]

03321-91964

Mgr: 027-7777654

Fax: 0277900127

Elmina

P. O. Box EL 113 Elmina

[email protected]

Mgr: 03321-40381,

Office: 03321-40383

Fax: 03321-40382

Mgr: 03321-30440


AREA OFFICES

Accra High Street

P.O. Box 2971, Accra Retail

[email protected]

Mgr:0302- 662337

Fax: 0302-673496

Ops. Mgr: 0302-672857

Cables Dept.: 0302-673493

Current/savings Dept: 0302-662508

Foreign Desk:: 0302-662434

Accra

P.O. Box K.96

0302-225928, 222641

Accra New Town

[email protected]

Fax: 0302-236671

Area Mgr: 0302-249772.

Tema

P.O. Box 152, Tema

[email protected]

0303-202768/9, 204824

Fax: 0303-204824

Koforidua

P.O. Box KF286, Koforidua

[email protected]

03420-26790-1

Fax: 03420-23042

Ho

P.O. Box 164, Ho

[email protected]

03620-28251, 26543

Fax: 03620-27598

Kumasi

P.O. Box SE 1212

[email protected]

3220- 31604

Suame, Kumasi

Fax: 03220-23512

Tamale


[email protected]

03720-26415, 25715

Fax: 03720-22765

Sunyani

P.O. Box 34, Sunyani

[email protected]

03520-25957/8, 24084

Fax: 03520-27162

Takoradi


[email protected]

03120-23072, 22355

24948

Fax: 03120-25226

Cape Coast


[email protected]

03321-32625

Fax: 03321-32625


2

To be held at 10.00am on Friday, June 29, 2012 at the National Theatre

Dear Member(s) You are hereby cordially invited to the next Annual General Meeting of Ghana Commercial Bank Limited, for which the details are as given above. If you will be attending in person, please bring along to the meeting this invitation or the counterfoil printed below, to facilitate registration, which will begin at 7:00 a.m. If you are unable to attend the meeting, you may use the Form below to exercise your vote by filling in the appropriate sections; then fold the Form as instructed overleaf and return it to GCB Registry at least 48 hours before the meeting. Alternatively you may appoint a Proxy (who need not be a Member of the Company) to attend and vote in your stead.

PROXY FORM RESOLUTION FOR AGAINST NOTES

1. To receive and consider the Financial Statements

for the year ended 31st December 2011 together with the reports of the directors and auditors thereon.

1. A member (shareholder) who is unable to

attend an Annual General Meeting is allowed by law to vote by proxy. The proxy form at the left has been prepared to enable you to exercise your vote if you cannot attend personally.

2. Provision has been made for the Chairman

of the Meeting to act as your proxy, but you may wish to name any person to attend the meeting and vote on your behalf.

3. In case of joint holders, each holder should

sign

4. If executed by a Company/ Corporation, the admission card should bear the Common Seal or be signed on its behalf by a Director.

5. For a postal proxy, please sign and post it so as to reach the GCB Registry not later than 10a.m on Wednesday, June 27th, 2012.

2. To declare a dividend for the year ended

31st December 2011.

3. To re-elect Mr. Fifi Fiavi Kwetey who is retiring

by rotation.

4. To authorize Directors to determine

the fees of the Auditors.

Shareholder Details Folio No. All Signatories to Sign Below

Please use this Counterfoil to indicate whom (if any) you might wish to act as your Proxy

FORM OF PROXY FOR USE AT AGM I/We ……………………………................................…………………………………a member/members(*) of GCB Hereby appoint ………………………………………................................………..or failing whom, the Chairman of the meeting as my/our(*) proxy to vote for me/us on my/our(*) behalf at the Annual Meeting of the Company to be held at 10am on June 29, 2012 and at any adjournment therefore.

Date

………….......…..........….….2012

(*) Delete whichever is not applicable

GHANA COMMERCIAL BANK LIMITED INVITATION AND FORM OF PROXY

FOR USE AT ANNUAL GENERAL MEETING

(*) Delete whichever is not applicable

Documents

contents - Doobia.com 2011 Annual_Report.pdf · contents Notice 5 The Board of Directors, Officials & Registered Office 7 Profile of Directors 8 Financial Highlights 11 Chairman’s