Bank of Ghana posts Ghs 1.57 billion net profit for 2020
The Bank of Ghana (BoG), per its 2020 Annual Report and Financial Statements, posted a net profit of Ghs 1.57 billion.
The posted profit for 2020 marked a decline in the Bank’s net profit by some Ghs 230 million when compared to the Ghs 1.80 billion recorded in 2019.
Board of Directors of the Central Bank for the 2020 fiscal year did not recommend dividend payments to government, probably in view of the decline the Bank’s profit.
According to the Bank, an amount of Ghs 403.37 million – as against the Ghs 1.24 billion made in 2019 – has been set aside as approved appropriations from reserves for contingencies, emergency interventions, general purpose loans, and others.
The report said despite the Covid-19 pandemic, the Central Bank has ensured that all key/critical functions and activities continue to operate, with none having been disrupted to date.
“Ghana has a strong and resilient banking system with adequate levels of capital and significant liquidity buffers to effectively manage the risks they face from the pandemic. The Basel framework, around which the Bank’s regulations are structured, provides for built-in capital and liquidity buffers for banks to draw on during times of financial stress”, the report pointed out.
Related Story: Central Bank’s assets value grows by Ghs 29.1 billion in 2020
“However, the Covid-19 pandemic created observed liquidity strains in various funding markets, which necessitated a review of the money market liquidity management strategy. Therefore, in addition to the measures taken by the Government of Ghana to contain the impact of the Covid-19 pandemic, the Central Bank has deployed monetary and financial stability policy tools to further mitigate the Covid-19 pandemic’s impact on the Ghanaian economy”, it stressed.
In 2020, the Bank of Ghana donated an amount of Ghs 10 million to the National Covid-19 Trust Fund to support the national’s effort towards the fight against the Covid-19 pandemic.
It also donated Ghs 10 million to the Private Sector Covid-19 Fund for the completion of a new Infectious Diseases Treatment Centre at Ga East, Accra to help in the management of critical Covid-19 cases.
Meanwhile, the BoG for the period under review recorded an increase in its assets value by Ghs 29.1 billion.
The Bank, per data provided in its 2020 Annual Report and Financial Statement ended 2020 with a total assets value of Ghs 97.8 billion.
The Central Bank’s 2020 assets value compared to the Ghs 68.6 billion assets value recorded in 2019 represents over 42 percentage points increment year-on-year.
