First National Bank strengthens loan asset quality; reduces NPLs to 4.7%
First National Bank (FNB) Ghana for the third quarter of 2021 strengthened its loan asset quality as the bank marginally reduced its non-performing loans (NPLs) by 0.7 percent.
First National Bank’s NPLs at the end of Q3 2021 stood at 4.7 percent from the previous 5.4% NPLs recorded in Q3 2020.
The strengthening of the bank’s loan asset quality and hence its reduction in NPLs can be attributed to some specific loan recovery strategies being used by the bank.
The bank for the review period also increased its net profit by some 94.9 percentage points recording a net profit of Ghs 7.41 million from the Ghs 3.80 million recorded as profit in Q3 2020.
The recorded increment in the bank’s net profit is mainly attributed to the increase in its operating income.
FNB’s operating income on a year-on-year basis increased from Ghs 102 million in Q3 2020 to Ghs 132 million in Q3 2021.
Driven mainly by its cash and cash equivalents and non-pledged trading assets, the bank’s total assets increased slightly to Ghs 2.24 billion from Ghs 2.15 billion in Q3 2020 and Q3 2021 respectively.
Cash and cash equivalents increased from Ghs 381 million in Q3 2020 to Ghs 678 million in Q3 2021.
Meanwhile, the bank’s liabilities for the review period also increased to Ghs 1.7 billion in Q3 2020 from Ghs 1.61 billion in Q3 2021.
The bank’s liabilities were mainly driven by deposits from customers and other banks.
Read details of Q3 2021 Financial Statement below:
FNB Ghana Q3 Unaudited Financial Statements_September 2021_V2 by Fuaad Dodoo on Scribd
