FBNBank Ghana posts robust Q2 2023 results; net profit rises to GHS 57.3m
FBNBank Ghana, a prominent player in the nation’s financial landscape, has reported impressive financials for the second quarter of 2023, as net profit soared to GHS 57.3m, representing a remarkable 49% year-on-year surge. The bank’s resounding performance can be attributed to a substantial growth in net interest income, which ballooned from GHS 88m to a staggering GHS 285m over the same period.
A significant driver behind the bank’s buoyant trajectory was the commendable expansion of its total assets value, which surged from GHS 2.08bn to GHS 3.3bn within the review period. Notably, this growth was chiefly fueled by a surge in FBNBank’s investment securities, standing at GHS 1.8bn, along with a robust increase in cash and cash equivalents, reaching GHS 857m.
The robust performance notwithstanding, the bank’s liabilities also witnessed substantial growth, primarily propelled by customer deposits, which escalated to GHS 2.6bn from GHS 1.45bn year-on-year, showcasing a notable 79% increase. As of the end of Q2 2023, customer deposits stood at GHS 1.55bn, reinforcing the bank’s position as a favored choice for depositors.
Furthermore, FBNBank Ghana has demonstrated an exemplary Capital Adequacy Ratio (CAR), scaling to an impressive 57% by the end of Q2 2023. This marked improvement from 49.2% at the same point in 2022 places the bank’s CAR significantly above not only the industry’s average CAR of 14% but also the Bank of Ghana’s mandatory CAR threshold of 13%.
However, the bank’s loan asset quality raised concerns as non-performing loans experienced a notable deterioration, surging from 3.71% to 24.4% year-on-year. This indicates a considerable increase in the proportion of bad loans in FBNBank Ghana’s loan portfolio.
The impressive Q2 2023 results underline FBNBank Ghana’s formidable position in the market, bolstered by robust net profit, expanding assets, and strong capital adequacy.
