First National Bank Ghana grows assets to GHS 3.71bn, ends 2023 with 19.18% CAR
First National Bank Ghana for the 2023 fiscal year grew the value of its assets to GHS 3.71bn from the previous year’s assets value figure of GHS 3.06bn.
Growth in the bank’s assets value was underpinned by increments in its cash and cash equivalents (GHS 1.23bn), loans and advances (GHS 1.12bn), non-pledged trading assets (GHS 134m), and investment securities (GHS 1.02bn).
Liabilities of the bank driven largely by growth in customer deposits (GHS 2.44bn) ended the year at GHS 3.36bn.
Growth in customer deposit indicates customer trust in the bank and further strengthens the bank’s credit creation ability.
Loan asset quality of the Bank measured by its non-performing loans deteriorated slightly to 11.16% from the previous year’s figure of 7.09%.
The Bank’s NPL is, however, significantly below the industry’s average NPL of 24.6%.
First National Bank Ghana ended the year with a Capital Adequacy Ratio (CAR) of 19.18% which is well above the industry’s average CAR of 13.6%, indicating the bank is solvent and financially stable.
Meanwhile, the bank recorded a loss of GHS 2.5m for the 2023 review year mainly due to increased operational expenses.
Operational expenses of First National Bank Ghana at the close of the 2023 fiscal year amounted to GHS 292m, a slight increase from the previous year’s operating expenses of GHS 289m.
The Bank’s operating income net of impairment loss on financial assets at end-2023 stood at GHS 290m, indicating a recorded loss of GHS 2.5m for the Bank in the review year.
Interest payments on customer savings and investments (GHS 284m), fees and commission expenses (GHS 30m), Personnel expenses (GHS 173m), and other operating expenses (GHS 83m) among others are what accounted for the Bank’s high operating expenses.
The GHS 2.5m recorded loss for 2023 is, however, a significant improvement on the GHS 340m loss recorded in 2022 on the back of the Government’s domestic debt restructuring programme.
Directors of the Bank have considered the bank’s ability to continue as a going concern despite the recorded GHS 2.5m loss and have no reason to believe the business will not be a going concern.
Going concern is an accounting term, which means a business is financially stable and can operate with the expectation of indefinite existence.
The Bank notes that its aim is to achieve an appropriate balance between risk and return and minimize potential adverse effects on its financial performance.
