FBNBank grows profit-after-tax by 96%; maintains liquidity ratio at 98%
FBNBank Ghana, for the 2021 fiscal year recorded 96 percentage points increment in its profit-after-tax.
The Ghanaian subsidiary of the Nigerian-owned bank at end-December 2021, posted a profit-after-tax of GHS 73.5m, some GHS 36.1m more than the profit-after-tax of GHS 37.4m recorded for the previous year – 2020.
Per the bank’s 2021 Financial Statement made available to norvanreports, recorded profit-after-tax for 2021 was driven mainly by growth in net interest income which rose from GHS 148m in 2020 to GHS 174m in 2021.
Based on the posted profit-after-tax for 2021, earnings per share for shareholders amounts to 0.18 pesewas, a 100 percentage points increment when compared to the 0.09 pesewas earnings per share posted in 2020.
For the year under review, the bank’s total assets value increased marginally from GHS 1.81bn in 2020 to GHS 1.91bn in 2021.
Accounting for the marginal growth in assets value was loans and advances made to businesses and households by the bank.
Loans and advances made by FBNBank increased from GHS 533m in 2020 to GHS 602m in 2021.
Regarding the issue of loans made within the review year, FBNBank within the year 2021 strengthened its loan asset quality by reducing its Non-Performing Loans (NPLs) from 7.58% in 2020 to 4.25% in 2021.
The reduction in the bank’s NPL indicates improved loan recovery methods being used by the bank.
The bank’s liquidity ratio also within the same year stood at 97.98% (approximately 98%), with a liquidity ratio of 98%, FBNBank is more than able to meet its short-term debt obligations.
The bank’s Capital Adequacy Ratio (CAR) which measures its ability to absorb bad loans stood at 62.99% at end-December 2021.
The bank’s CAR is 4.8 times higher than the Bank of Ghana’s minimum 13% CAR regulatory requirement.
Regarding its liabilities, FBNBank ended 2021 with total liabilities of GHS 1.32bn, marginally above the GHS 1.29bn recorded in 2020.
Peruse details of Financial Statement below:
2021 Full Year Financials by Fuaad Dodoo on Scribd
