First National Bank posts 23.6% growth in assets value in 2022
First National Bank (FNB) Ghana at the end-December 2022 recorded a 23.6% growth in total assets value.
The bank within the review period witnessed its assets value rise from GHS 2.48bn to GHS 3.06bn indicating some GHS 586m increase in assets value.
Growth in assets value of the bank was driven by increments in the South African-owned bank’s cash and cash equivalents from GHS 649m in 2021 to GHS 1.05bn in 2022, further supported by an increase in loans and advances to customers which stood at GHS 981m at end-2022.
Liabilities of the bank driven mainly by deposits from customers (GHS 1.92bn) stood at GHS 2.82bn, an increase from the previous year’s figure of GHS 1.93bn.
Growth in deposits by customers indicate increased capacity by the bank to increase loans to customers as well as potential increase in interest-income from loans.
Despite the growth in assets, impairments costs on financial assets held by the bank on the back of the domestic debt restructuring programme amounted to GHS 263m. (Impairment resulting from domestic debt exchange amounted to GHS214m)
The debt exchange programme largely affected the bank’s profitability leading to a net loss of GHS 340m in 2022.
Within the review period, Capital Adequacy Ratio (CAR) of First National Bank declined to 19.82% from 36.62%.
Despite the decline, the bank’s CAR still remains well above the BoG’s minimum CAR requirement of 10%.
Loan asset quality of First National Bank for the period under review deteriorated with non-performing loans ratio of the bank falling from 3.49% in 2021 to 7.09% in 2022.
