Loan asset quality of Access Bank Ghana Plc, improved significantly in the first quarter of this year.
The improvement in the bank’s loan asset quality comes on the back of a reduction in its Non-Performing Loans (NPLs) by 8.2 percentage points on a year-on-year basis.
Recorded NPL as a percentage of gross loans for end-March 2021 was 16.73 percent as against the 24.98 percent recorded for end-March 2020.
Capital Adequacy Ratio (CAR) which measures how solvent a bank is as well as a bank’s ability to absorb losses incurred through bad loans, was increased by the Bank from 22.42 percent in Q1 2020 to 28.06 percent in Q1 2021.
Access Bank also saw it’s net interest and operating income rise to Ghs 111 million and Ghs 159 million respectively in Q1 2021.
Net interest and operating income recorded for Q1 2020 was Ghs 150 million and Ghs 151 million respectively.
Recorded increments in the bank’s net interest and operating income ultimately resulted in the Ghs 74.9 million profit posted by the bank for Q1 2021.
Compared to the Ghs 68.1 million recorded for same period last year, growth in profit represents a year-on-year increase of Ghs 6.8 million.
Total assets value as contained in the bank’s unaudited Financial Statement for Q1 2021 and perused by norvanreports, currently stands at Ghs 6.5 billion. An increase of some Ghs 1.4 billion from last year’s Ghs 5.1 billion.
Increment in Access Bank’s assets value is attributed to a surge in both investment securities and ‘other assets’.
Investment securities for the period under review, increased to Ghs 2.3 billion in Q1 2021 from Ghs 1.4 billion in Q1 2021.
Other assets held by the bank doubled in value ending the first quarter of this year at Ghs 272 million from Ghs 123 million in Q1 2021.
Then, is the bank’s total liabilities which increased from Ghs 4.2 billion to Ghs 5.4 billion in Q1 2020 and Q1 2021 respectively, mainly driven by increased deposits from customers and other banks.
