FBN Bank reduces NPL by 10.83 percentage points
First Bank of Nigeria (FBN) Ghana, for the third quarter of 2021 posted a strong loan asset quality reducing its non-performing loans (NPLs) by some 10.83 percentage points.
The bank on a year-on-year basis reduced its NPLs from 19.98 percent in Q3 2020 to 9.15 percent in Q3 2021, indicating a strengthening of the bank’s loan asset quality.
The reduction in FBN Bank’s NPLS is indicative of the fact that the use of some specific loan repayment strategies by the bank are working and effective.
Also, the bank’s Capital Adequacy Ratio (CAR) for the period ended Q3 2021 stood at 71.54 percent, a significant reduction from the 111.26 percent CAR posted same period last year.
Despite the large reduction in the bank’s CAR for the review period, FBN Bank’s CAR is significantly above the Bank of Ghana’s (BoG) regulatory CAR requirement of 13 percent.
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The capital adequacy ratio (CAR) is a measurement of a bank’s available capital expressed as a percentage of a bank’s risk-weighted assets and liabilities.
Capital Adequacy Ratios mandate that a certain amount of the deposits be kept aside whenever a loan is being made. These deposits are kept aside as provisions to cover up the losses in case the loan goes bad.
With regards to profit made for the review period, FBN Bank posted a net profit or total comprehensive income of Ghs 37 million.
The posted profit of Ghs 37 million for Q3 2021, represents a marginal decline in profit from the Ghs 39 million recorded in Q3 2020.
The bank’s total assets value and liabilities for the review period recorded marginal changes.
Total assets value of FBN increased marginally from Ghs 1,703 million in Q3 2020 to Ghs 1,709 million in Q3 2021.
Total liabilities on the other hand also decreased marginally from Ghs 1,183 million in Q3 2020 to Ghs 1,155 million in Q3 2021.
Examine details of FBN Bank’s Q3 Financial Statement below:
FBNBank Ghana Limited 3rd Quarter Financial Statement (2021) (4) by Fuaad Dodoo on Scribd
