Page 80 - GTBank Annual Report 2020 eBook

capital (1.25% of risk assets and hybrid the business. The impact of the level of capital on
instruments – convertible bonds). Banking shareholders’ return is also recognized and the
operations are categorized mainly as trading bank recognizes the need to maintain a balance
book or banking book, and risk-weighted assets between the higher returns that might be possible
are determined according to specific with greater gearing and the advantages and
requirements that seek to reflect the varying security afforded by a sound capital position.
levels of risk attached to the assets and off-
financial position exposures. The Bank and its individually regulated
operations has complied with all externally
The Bank’s policy is to maintain a strong capital imposed capital requirements throughout the
base so as to maintain investor, credit and market year. There have been no material changes in the
confidence and to sustain future development of Bank’s management of capital during the year.

Capital Adequacy Ratio
The capital adequacy ratio is quotient of the bank’s capital base and its risk-weighted asset base. In
accordance with the Central Bank of The Gambia regulations, a minimum ratio of 10% is to be maintained
by commercial banks.

In thousands of Gambian Dalasi Dec.-2020 Dec.-2019
Tier 1 capital
Ordinary share capital 300,000 300,000
Retained earnings 225,412 129,758
Other reserves 359,471 323,962
Shareholders’ funds 884,883 753,720
Add/(Less):
Shareholders’ funds 884,883 753,720
Tier 2 capital - -
Total - -
Total regulatory capital 884,883 753,720
Risk-weighted assets 2,600,313 2,383,622
Capital ratios
Total regulatory capital expressed as a percentage
of total risk-weighted assets 34% 32%
Total tier 1 capital expressed as a percentage of
risk-weighted assets 34% 32%

Annual Report 2020

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