Republic Bank posts 152% liquidity ratio; grows asset base to GHS 4.1bn
Republic Bank Ghana for the review period between Q1 2021 and Q1 2022 grew its asset value base to GHS 4.1bn.
The growth represents a more than GHS 297m year-on-year increase in the bank’s assets base when compared to the GHS 3.8bn total assets value recorded same period last year – Q1 2021.
Driving the growth in the bank’s assets base were loans and advances to customers as well as Investment securities holdings of the bank which amounted to GHS 1.9bn and GHS 1.2bn respectively.
In Q1 2021, loans and advances to customers as well as Investment securities holdings of the stood at GHs 1.5bn and GHS 1.1bn respectively.
Despite the increase in loans and advances and investment securities, a major component of the bank’s asset base which is its cash and cash equivalents declined from GHS 880m to GHS 658m.
Liabilities of Republic Bank within the review period witnessed a marginal increase as the bank at the end of the first quarter of 2022, posted total liabilities of GHS 3.3bn driven largely by customer deposits.
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Compared to same period last year, Republic Bank’s total liabilities was GHS 3.1bn.
Republic Bank continues to post high liquidity ratio as the bank for the first quarter of this year, recorded a liquidity ratio of 152%.
Liquidity ratio measures a bank’s ability to meet or pay its short term debt obligations.
Given the bank’s liquidity ratio of 152% (above 100%), it is safe to say that the bank is more than capable of meeting its short term debt obligations.
Capital Adequacy Ratio (CAR) of Republic Bank at end-Q1 2022 also stood at 24.2%, 11.2 percentage points higher than the Central Bank’s 13% minimum CAR requirement.
This therefore implies that the bank has enough funds to cover loan losses or bad debts.
On a year-on-year basis, non-performing loans of the bank was reduced by 3.25 percentage points from 18.39% in Q1 2021 to 15.14% in Q1 2022, indicating a strengthening of the bank’s loan asset quality.
With regards to profit made for the review period, Republic Bank posted a profit-before-tax of GHS 42m up from the GHS 33m recorded in Q1 2021.
Profit-after-tax however amounted to GHS 27.4m.
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