First National Bank posts 38.4% CAR for Q2 2021
South African-owned bank, First National Bank (FNB), for the second quarter of 2021 posted a Capital Adequacy Ratio (CAR) of 38.42 percentage points.
The bank’s Capital Adequacy Ratio which is approximately three times the 13 percent Capital Adequacy Ratio requirement by the Central Bank, is indicative that the bank is in a good position to cover potential losses incurred as a result of bad loans.
It is also indicative that the bank is very solvent and as such depositors are very unlikely to lose their funds.
An examination of the bank’s Q2 2021 Unaudited Financial Statement revealed a slight weakening in the bank’s loan asset quality by 4.44 percentage points year-on-year.
First National Bank’s Non-Performing Loans (NPLs) grew from 0.15 percent in Q2 2020 to 4.59 percent in Q2 2021.
The weakening of the bank’s loan asset quality indicates declining loan repayment levels, but as noted earlier, the bank is in a good position to cover losses made from bad loans.
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Also, the bank’s NPL of 4.59 percent is way below the banking industry’s NPL of 17 percent, hence there is no need for depositors to be worried about the bank’s current NPL level.
First National Bank for the second quarter of this year posted operating income of Ghs 89 million, an increase of Ghs 26 million from the operating income of Ghs 63 million recorded for Q2 2020.
However, the bank’s expenses – personal expenses, other operating expenses, depreciation and amortization – absorbed a chunk of the bank’s operating income resulting in the bank recording a total comprehensive income of Ghs 6.6 million at end-June 2021.
In terms of net assets value, the bank for the review period increased slightly its assets value by some Ghs 137 million.
Assets value of First National Bank for end-June 2021 stood at Ghs 2.21 billion as against the Ghs 2.08 billon recorded same period last year.
Liabilities of the bank, also for the review period increased marginally to Ghs 1.68 billion in Q2 2021 from Ghs 1.54 billion in Q2 2020.
Peruse details of the financial statement below:
FNBG Q2 Unaudited Financial Statements _ June2021 by Fuaad Dodoo on Scribd
