First Bank of Nigeria (FBN) Ghana, considerably improved its loan asset quality over the period between Q1 2020 and Q1 2021.
Recorded non-performing loans (NPLs) of FBN Bank at the end of the first quarter of 2021, stood at 8.51 percent of gross loans.
On a year-on-year basis, FBN Bank slashed its loans by 13.65 percentage points from the 22.16 percent NPL ratio recorded in Q1 2020.
The bank for the first quarter also posted a Capital Adequacy Ratio (CAR) of 70.87 percent – 5 times more the BoG’s regulatory requirement of 13 percent CAR – indicating the bank’s strong ability to absorb potential losses incurred through bad loans.
Profit recorded for Q1 2021, according to the bank’s Q1 2021 Financial Statement and as examined by norvanreports, was Ghs 14.2 million.
Profit recorded for same period last year – Q1 2020 – was Ghs 12.6 million, implying that the bank on a year-on-year basis grew its profit by some Ghs 1.6 milllion.
The realized profit was driven by net interest income and revenue which improved from Ghs 35 million to Ghs 40 million and Ghs 39 million to Ghs 44 million in Q1 2020 and Q1 2021 respectively.
Total assets value posted by FBN Bank for Q1 2021, stood at Ghs 1.67 billion, an increment of Ghs 363 million when compared to the recorded Ghs 1.31 billion total assets value in Q1 2020.
The bank’s total liabilities which include cash deposits from customers on a year-on-year basis, also saw an increase of some Ghs 323 million.
Total liabilities at end-Q1 2021, amounted to Ghs 1.14 billion from the Ghs 820 million recorded in Q1 2020. This makes the bank one of the strongest with the ability to mobilize deposits even in the pandemic era where individuals and business are looking for cash to inject into their business.
