Absa Bank grows assets value by Ghs 3 billion YoY with increased profit
South African-owned bank, Absa bank Ghana, on a year-on-year (YoY) basis, increased the value of its total assets by an impressive Ghs 3 billion.
The bank’s total assets value which stood at Ghs 12.7 billion in the third quarter of 2020, rose to Ghs 15.7 billion in the third quarter of 2021.
Per Absa Bank’s Q3 2021 Financial Statement, the main drivers of the posted total assets value of Ghs 15.7 billion were the bank’s non-pledged trading assets, investment securities, loans and advances to banks.
Absa Bank’s non-pledged trading assets and investment securities rose from Ghs 2.06 billion to Ghs 3.57 billion in Q3 2020 and Q3 2021 respectively.
Loans and advances to banks also grew from Ghs 212 million to Ghs 714 million in Q3 2020 and Q3 2021 respectively.
There was a corresponding increase in liabilities as the bank’s total liabilities grew from Ghs 10.6 billion in Q3 2020 to Ghs 13.5 billion in Q3 2021 – also increasing by almost Ghs 3 billion.
Driving the bank’s liabilities were deposits from customers and borrowings or loans taken by the bank which grew from Ghs 6.08 billion to Ghs 7.7 billion and Ghs 3.4 billion to Ghs 4.1 billion for the period under review.
Meanwhile, profit made by the bank for the review period totalled Ghs 546 million at the end of Q3 2021.
Compared to last year’s profit of Ghs 385 million, the bank increased its profit or total comprehensive income by Ghs 161 million.
Despite the impressive growth witnessed in the bank’s assets value and profit, Absa Bank’s loan asset quality weakened with its non-performing loans (NPLs), increasing by 2.09 percent.
For the review period, the bank’s NPLs as a ratio of gross loans made increased from 9.40 percent to 11.49 percent.
Also, the bank’s Capital Adequacy Ratio (CAR) which measures or determines the bank’s ability to cover or absorb bad loans also declined from 21.35 percent to 18.7 percent.
Despite the decline, the bank’s CAR is still well above the Bank of Ghana’s regulatory minimum requirement of 13 percent CAR.
Examine Absa’s Q3 2021 Financial Statement below:
Q3 Financial Statement q3 for Period 30 September 2021 by Fuaad Dodoo on Scribd
