Unless events turn in their favour, shareholders of GCB Bank may be biting their fingers as the Bank of Ghana (BoG) has halted the payment of dividends following a regulatory breach.
This new twist is coming despite an approval for dividends to be paid by GCB Bank to shareholders at its Annual General Meeting (AGM) in May this year.
In a notice issued on October 20, 2025, and circulated to all customers, GCB Bank explained that despite receiving shareholder approval to pay dividends for the 2024 financial year, it cannot proceed with the payment because the central bank has not granted the necessary regulatory “no objection.”
“GCB Bank PLC wishes to inform its esteemed shareholders and the general public that the Bank is presently unable to proceed with the payment of the dividend approved at its Annual General Meeting (AGM) held on May 2, 2025, for the year ended December 31, 2024,” the bank’s notice announced.
Why The Freeze
GCB Bank explains that the Bank of Ghana’s decision stems from what is known as a “single obligor limit” breach. This rule basically ensures that banks do not lend or expose too much of their funds to one customer or entity, to prevent the risk of huge losses if that customer defaults.
According to GCB Bank, the problem arose when the government’s short-term cocoa bills, which the bank had invested in, were converted into longer-term bonds.
Previously, cocoa bills were treated like treasury bills (short-term, low-risk securities). But after the reclassification into long-term bonds, they were now counted differently under banking regulations.
This shift meant GCB Bank’s total exposure to a single borrower, in this case, COCOBOD, suddenly appeared higher than allowed under the BoG’s prudential rules. That technical breach put the bank in temporary non-compliance, automatically disqualifying it from paying dividends until the issue is resolved.
The Way Forward
The bank says it is actively engaging the Central Bank to address the matter and return to full compliance as soon as possible. It also expressed regret for any inconvenience to shareholders, assuring them that the situation is temporary and that its financial position remains strong.
The indigenous bank further reiterated its commitment to regulatory compliance, financial soundness, and the protection of shareholder value, signaling that this is a procedural setback rather than a financial distress issue.
“The Bank is actively engaging with the regulator to resolve this matter as quickly as possible and to restore full compliance,” the notice assured.
What This Means for Shareholders
Considering the turn of events, shareholders will have to wait until the issues are settled with the BoG before they can receive their dividends.
The development emphasizes the commitment of the Bank of Ghana to ensure that banks are strictly regulatory compliant to protect depositors and the entire financial system.
This means that until GCB regularizes its exposure under the single obligor rule, no dividends can be paid, even though they were approved months ago.
