Bank of Africa Ghana reduces NPLs by 7.25% YoY
Loan asset quality of Bank of Africa (BoA) Ghana was strengthened within the period of Q3 2020 and Q3 2021.
BoA Ghana within the said period reduced its Non-Performing loans by 7.25 percentage points indicative of a robust loan recovery strategy implemented by the bank.
The bank’s NPL in Q3 2020 stood at 20.22 percent, it however, declined to 12.97 percent in Q3 2021 falling below the industry’s average of 17 percent.
The bank’s ability to absorb bad loans as measured by the Capital Adequacy Ratio (CAR) although recording a marginal decrease, also remained strong within the review period.
BoA Ghana’s CAR as at end-Q3 2021, stood at 42.06 percent from the previous year’s 43.73 percent.
Increments in BoA Ghana’s cash and cash equivalents, loans and advances to customers and Investment securities, resulted in a significant surge in the bank’s assets value.
Of the three, the bank’s investment securities posted the highest increase ending Q3 2021 with some Ghs 1.50 billion from the Q4 2021 figure of Ghs 808 million.
Total assets value posted for Q3 2021 amounted to Ghs 2.87 billion as against the Q3 2020 figure of Ghs 1.99 billion.
Liabilities of the bank for the review period also increased significantly from Ghs 1.36 billion to Ghs 2.18 billion.
Deposits from customers of BoA Ghana and borrowed funds by the bank accounted for the surge in liabilities.
Deposits by customers grew from Ghs 948 million to Ghs 1,205 million, whereas borrowed funds also increased from Ghs 334 million to Ghs 807 million.
Net profit recorded for the period was Ghs 50 million, an increase of Ghs 2 million year-on-year from the previous year’s Ghs 48 million net profit.
Peruse financial statement below:
Boa Financials for q3 30 Sept. 2021 by Fuaad Dodoo on Scribd
