CBG post 0.71% NPL, 83% liquidity ratio in 2021
Consolidated Bank Ghana (CBG) for the period ended December 31, 2021, recorded a non-performing loan (NPL) ratio of less than 1 percent.
Despite a marginal increase in its NPL under the review year from 0.12% in 2020 to 0.71% in 2021, CBG witnessed a very strong loan asset quality.
The posted NPL of 0.71% is indicative of robust loan recovery strategies being implemented by CBG.
With an NPL of 0.71%, CBG compared to its peers might probably have the lowest NPL in the country.
According to the Bank of Ghana, the industry’s average NPL currently stands at 14.4%.
CBG for the review period also strengthened its liquidity ratio increasing it from 73% in 2020 to 83% in 2021, indicating its increasing ability to meet short-term debt obligations.
A perusal of the bank’s 2021 Financial Statement by norvanreports revealed that profit-after-tax amounted to GHS 72m, 56 percentage points higher than the GHS 46m profit-after-tax recorded in the year 2020.
Accounting for the growth in the profit-after-tax was the bank’s net interest income which rose to GHS 624m from GHS 513m in 2021 and 2020 respectively.
CBG for the period under review ended with a total asset value of GHS 10.71bn.
This compares favourably to the GHS 9.96bn recorded in 2020. Contributing to the rise in the bank’s assets value were its cash and cash balances and loans and advances to customers.
Cash and cash balances rose to GHS 1.33bn in 2021 from GHS 763m in 2020, loans and advances also grew to GHS 1.33bn from GHS 861m in 2021 and 2020 respectively.
Liabilities of the bank at end-December 31, 2021, amounted to GHS 9.94bn, up from the GHS 9.39bn recorded in 2020.
Read details of Financial Statement below:
Final 2021 Cbg Summary Fs 2021 Signed by Fuaad Dodoo on Scribd
