First Atlantic Bank records 85.3% surge in net profit; total assets value Jumps by 65.6%

First Atlantic Bank records 85.3% surge in net profit; total assets value Jumps by 65.6%

First Atlantic Bank Ghana has announced its financial results for the second quarter of 2023, showcasing an impressive 85.3% increase in net profit compared to the same period last year.

While the bank witnessed significant growth in key financial indicators, concerns have arisen over the deterioration of loan asset quality.

During the review period, the bank’s net profit soared from GHS 50.08 million in Q2 2022 to an impressive GHS 92.8 million in Q2 2023.

This remarkable surge was primarily attributed to substantial increments in net interest income, which rose from GHS 151 million to GHS 274 million, underlining the bank’s robust operational performance.

First Atlantic Bank’s total assets value exhibited a notable 65.6% rise, climbing from GHS 5.04 billion in Q2 2022 to GHS 8.35 billion in Q2 2023.

This remarkable growth was primarily driven by significant increases in cash and cash equivalents, reaching GHS 2.1 billion, and investment securities, totaling GHS 2.09 billion.

The bank’s Capital Adequacy Ratio (CAR) moved from 21% in Q2 2022 to 14% in Q2 2023, aligning it with the industry’s average CAR.

Within the period under review, non-performing loans, went up from 8% in Q2 2022 to 17% in Q2 2023 year on year impacted by the ongoing Domestic Debt Exchange Programme by the government.

Despite the challenges in CAR and loan asset quality, First Atlantic Bank remains committed to its growth trajectory and overall financial health.

The bank’s strong net profit performance and substantial growth in total assets signal its position as a significant player in Ghana’s financial landscape.

However, addressing the mounting concerns over loan asset quality will be critical to sustaining its success in a dynamic economic environment.

First Atlantic Bank Ghana’s Q2 2023 financial results exemplify the complexities faced by financial institutions in balancing growth and risk management, requiring strategic focus and prudent decision-making to navigate these challenging times successfully.