Access Bank slashes NPLs to 4%; adds GHS 1.6bn to total assets value
Access Bank Ghana Limited witnessed a significant improvement in its loan asset quality for period between Q1 2021 and Q1 2022.
Access Bank within the review period strengthened its loan asset quality reducing it from 16.73 percentage points to 4.04 percentage points.
The bank’s current NPLs is way below the banking industry’s NPLs of 14.4 percent.
The significant reduction in the bank’s NPLs is indicative of the robust loan recovery methods currently being used by the bank in loan repayment mobilisation.
Another significant gains recorded by Access Bank within the review period, is the growth of its total assets value to GHS 8.2bn
Per the bank’s Financial Statement for the end of the first quarter of 2022, total assets value compared to same period last year, grew by some GHS 1.6bn.
Access Bank’s total assets value as at Q1 2021 stood at GHS 6.5bn.
The GHS 1.6bn growth in the bank’s total assets value was mainly driven by increments in its investment securities which rose from GHS 2.3bn in Q1 2021 to GHS 3.7bn in Q1 2022.
Profit-before-tax as noted by the bank in its financial statement, amounted to GHS 132m, some GHS 25m more when compared to the GHS 107m profit-before-tax recorded for same period last year.
However, the bank’s profit-after-tax amounted to GHS 87m, based on which earnings per share for shareholders is pegged at 50 pesewas.
The bank’s liquidity ratio at the end of the first quarter of this year, stood at 109%, a significant reduction from the posted 164% in Q1 2021.
The liquidity ratio measures a bank’s ability to pay or meet its short-term debt obligations.
Despite the significant decline in the bank’s liquidity ratio, the bank can comfortably meet or pay its short term debt obligations given its current liquidity ratio of 106%.
