"GTBank posts 2.39% NPLs; grows CAR to 40%"

" \n GTBank posts 2.39% NPLs; grows CAR to 40% \n \n\n \n GTBank Ghana, witnessed a strong loan asset quality position for the first quarter of 2022. \n \n\n \n This is despite a marginal deterioration in the bank\u2019s loan asset quality on a year-on-year basis. \n \n\n \n Non-Performing Loans (NPLs) of the bank increased to 2.39% in the first quarter of 2022 from the previously recorded 1.02% NPLs in Q1 2022. \n \n\n \n With a 2.39% NPL, GTBank\u2019s NPLs is 6 times less the industry\u2019s average of 14.4%. \n \n\n \n Despite the marginal increment in the bank\u2019s NPLs, any loan losses or bad debts arising from the NPLs will be comfortably covered by the bank, given the increase in its Capital Adequacy Ratio (CAR) within the period under review. \n \n\n \n GTBank for the review period increased its CAR from 35% in Q1 2021 to 40% in Q1 2022. \n \n\n \n The Capital Adequacy Ratio (CAR) is a measurement of a bank\u2019s available capital expressed as a percentage of a bank\u2019s risk-weighted assets and liabilities. \n \n\n \n Capital Adequacy Ratios mandate that a certain amount of the deposits be kept aside whenever a loan is being made. These deposits are kept aside as provisions to cover up the losses in case the loan goes bad. \n \n\n \n The bank for the review period also strengthened its capacity to pay short term debts as it increased its liquidity ratio to 65.86% from the previous 62.86% recorded same period last year. \n \n\n \n Assets of the bank for the period between Q1 2021 and Q1 2022, saw an increment in value of some GHS 668m, ending Q1 2022 at a total value of GHS 5.7bn. \n \n\n \n This is from the Q1 2021 total assets value of GHS 5.03bn. \n \n\n \n Increment in the bank\u2019s assets value was mainly driven by growth in the bank\u2019s cash and cash equivalents as well as loans and advances to customers. \n \n\n \n Cash and cash equivalents, loans and advances for the review period rose from GHS 894m to GHS 1.3bn and GHS 1.6bn to GHS 1.8bn respectively. \n \n\n \n Liabilities for the same review period, also grew from GHS 3.8bn to GHS 4.3bn driven mainly by deposits from customers. \n \n\n \n Deposits from customers accounted for GHS 4.2bn of the bank\u2019s total liabilities. \n \n\n \n Per the bank\u2019s financial statement for the first quarter of this year, net profit made from its operations amounted to GHS 102m. \n \n\n \n Examine details of Financial Statement below: \n \n\n \n 2022 Q1 Financials Publication Web Copy 2022 04-29-145359 Flkm by Fuaad Dodoo on Scribd (function() { var scribd = document.createElement(\"script\"); scribd.type = \"text\/javascript\"; scribd.async = true; scribd.src = \"https:\/\/www.scribd.com\/javascripts\/embed_code\/inject.js\"; var s = document.getElementsByTagName(\"script\")[0]; s.parentNode.insertBefore(scribd, s); })(); \n "

"GTBank posts 2.39% NPLs; grows CAR to 40%"

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