First Atlantic Bank strengthens loan asset quality in Q3 2021
Loan asset quality of First Atlantic Bank for the period between Q3 2020 and Q3 2021 was strengthened as the bank reduced its non-performing loans (NPL) by 9 percentage points.
NPL of First Atlantic Bank as at the end of Q3 2021 stood at 15 percent from the previous level of 24 percent in Q3 2020.
The strengthening of the bank’s loan asset can be attributed to efficient loan recovery strategies put in place by the bank within the period under review.
Improvement in the revenue and cashflow of businesses on the back of the rebound of the economy from the Covid-19 pandemic can also be said to have contributed to the decline in the bank’s NPL as businesses are now able to repay loans taken although some level of loan repayment challenges still persist
The bank’s profit for the period amounted to Ghs 83 million.
The posted profit marks an increase of Ghs 33 million year-on-year when compared to the Ghs 50 million profit recorded for same period last year.
The bank’s profit for the period was driven mainly by First Atlantic Bank’s net interest and operating incomes.
The bank’s net interest and operating incomes for the period amounted to Ghs 183 million and Ghs 251 million respectively.
With regards to total assets value, First Atlantic Bank, grew its assets by Ghs 1 billion in the review period.
The bank ended Q3 2021 with a total assets value of Ghs 4.1 billion from the Ghs 3.06 billion recorded in Q3 2020.
The bank’s investment securities, other assets, cash and cash equivalents mainly accounted for the increase.
Posted liabilities of Ghs 3.4 billion for the period also marked an increase of Ghs 1 billion from the Ghs 2.4 billion liabilities recorded in Q3 2020.
Increments in the bank’s liabilities was mainly driven by deposits from customers as deposits grew from Ghs 2.3 billion in Q3 2020 to Ghs 3.3 billion in Q3 2021.
First Atlantic Bank’s ability to absorb bad loans was weakened within the period under review as the bank’s Capital Adequacy Ratio declined by 8 percentage points from 29 percent in Q3 2020 to 21 percent in Q3 2021.
Despite the reduction, the bank’s CAR still remains well above the Bank of Ghana (BoG), minimum 13 percent regulatory CAR requirement.
Examine Q3 2021 Financial Statement below:
