Republic Bank records 10.4% decline in profit; assets value rise to GHS 4.4bn
Republic Bank Ghana witnessed a 10.4 percentage points year-on-year decline in its net profit at the end of the third quarter of this year.
Per the bank’s Q3 2022 Financial Statement, net profit declined from GHS 74m in Q3 2021 to GHS 66m in Q3 2022.
Accounting for the decline in the bank’s net profit was a decrease in its profit before tax from GHS 115m in Q3 2021 to GHS 103m in Q3 2022.
Within the review period, total assets value of Republic Bank witnessed a 16.1 percentage points increase.
Total assets value rose from GHS 3.8bn in Q3 2021 to GHS 4.4bn in Q3 2022.
Accounting for the rise in total assets value were increments in Republic Bank’s cash and cash equivalents, loans and advances to customers and investment securities.
The aforementioned components of the bank’s total assets value grew from GHS 776m to GHS 870m; GHS 1.62bn to GHS 1.99bn; and GHS 1.14bn to GHS 1.32bn in Q3 2021 and Q3 2022 respectively.
Liabilities of the bank also witnessed an increase within the review period as it grew from GHS 3.13bn in Q3 2021 to GHS 3.66bn in Q3 2022.
Growth in Republic Bank’s liabilities was driven mainly by increment in deposits from customers. Deposits from customers rose to GHS 3.35bn at end-Q3 2022 from the previous figure of GHS 2.78bn at end-Q3 2021.
Asset quality and capital adequacy ratio of the bank declined within the review period.
Asset quality declined as the bank’s non-performing loans (NPLs) increased to 19.08% from 17.56%, indicating some inefficiencies in the bank’s loan recovery methods.
Capital Adequacy Ratio of Republic Bank also decreased from 26.36% to 21.59%, despite the decline, the bank’s Capital Adequacy Ratio is still fairly above the BoG’s minimum 13% capital adequacy ratio requirement.
