By Festus Poquie
Three Ghanaian lenders are preparing to enter Liberia’s banking market with takeover bids as several local institutions — including state-owned Liberia Bank for Development and Investment face mounting troubles, Oracle News Daily understands.
GCB Group PLC said this week it is in advanced negotiations to acquire Liberia’s third-largest bank, Board Chairman Professor Joshua Alabi told shareholders at the lender’s annual meeting.
The move follows First Atlantic Bank PLC’s regulatory approval three months ago to begin operations in Liberia and signals growing regional consolidation as Ghanaian banks pursue cross-border growth.
“We met with the Governor of their Central Bank and met with the President of the country to show an interest in moving into the Liberia market and the possibility of acquiring the third largest bank in Liberia,” Alabi said, adding discussions are ongoing and the bank is optimistic about a successful outcome. GCB is also exploring expansion into The Gambia and Burkina Faso.
While GCB did not name the target, filings with the Central Bank of Liberia and a leaked acquisition brief point to International Bank Liberia Limited (IBLL) — formerly International Trust Company — as a likely candidate.
According to a Crowe Liberia LCC audited-financials summary for 2022 seen by Oracle News Daily, majority shareholders put IBLL up for sale in mid-2024 with an indicative price range of roughly USD 19.7m–21m, effectively the shareholders’ capital.
IBLL’s audited snapshot for 2022 showed total assets of about USD 177.7m and liabilities of USD 157.7m. Cash and cash equivalents were around USD 46.7m, loans and advances stood at roughly USD 96.8m and borrowings were about USD 23.6m.
The bank reported profit after tax of LRD 221.9m (about USD 1.45m) for 2022, and a capital adequacy ratio of 14.1% versus the regulator’s 10% minimum — metrics the Crowe note described as “well placed as a healthy financial institution in a challenged economy.”
Nevertheless, the sales move and interest from Ghanaian acquirers come amid reports of stress across Liberia’s banking sector. The International Monetary Fund reports three commercial banks are in a “troubling state,” including the state-owned Liberia Bank for Development and Investment, prompting discussions with external investors and potential consolidation.
Market players say cross-border acquisitions can provide fresh capital, governance overhaul and operational expertise, but they also carry political and regulatory hurdles.
GCB’s outreach included meetings with Liberia’s central bank and the president, according to Alabi, reflecting an attempt to secure high-level buy-in before closing any deal.
First Atlantic Bank’s recent licensing to operate in Liberia and GCB’s stated acquisition ambitions underscore a widening effort by Ghanaian banks to broaden regional footprints as domestic competition intensifies.
For Liberia, incoming investors could help stabilize struggling lenders, though sources warn potential buyers will need to manage legacy loan books and navigate local political sensitivities.
Neither GCB nor IBLL commented on the specifics of negotiations when contacted. The Central Bank of Liberia did not immediately respond to requests for confirmation of any pending transfer of ownership.
