Prudential Bank Ghana recorded a year-on-year (YoY) profit of Ghs 6.8 million from end-December 2019 to end-December 2020.
Total profit recorded at the end of 2020 according to the bank’s 2020 Financial Statement was Ghs 33 million from the Ghs 26 million recorded at the end of 2019.
The YoY increase of Ghs 6.8 million was on the account of a rise in the bank’s net interest and operating incomes which amounted to Ghs 284 million end-2020 from Ghs 184 million end-2019 and Ghs 379 million end-2020 from Ghs 276 million end-2019 respectively.
Tax payments, amortisation and other expenses of the bank for the period under review however, reduced the bank’s incomes to the Ghs 33 million recorded at the end of 2020.
The bank’s loan asset quality deteriorated as its Non-Performing Loans (NPLs) increased by 7 percent ending 2020 at 16.05 percent of gross loans from the 2019 NPLs rate of 9.04 percent.
The NPLs can be attributed to the inability of businesses and households to pay back loans taken the previous year – 2018 – as the Coronavirus pandemic negatively impacted the income stream of businesses and households.
The bank recorded no significant changes in its Capital Adequacy Ratio (CAR) as it maintained its CAR of 19 percent – 6 percentage points higher than the BoG’s 13 percent – for end-December 2020. Recorded CAR for 2019 was also 19 percent.
With regards to assets value, Prudential bank increased its assets value by more than Ghs 700 million as its total assets value at the end 2020 was valued at Ghs 3.9 billion from Ghs 3.2 billion in 2019.
Increment in total assets value was due to increases in the bank’s investment securities as well as cash and cash equivalents.
Investments securities at end-2020 amounted to Ghs 1.2 billion from Ghs 832 million in 2019, with cash and cash equivalents amounting to Ghs 732 million from Ghs 402 million in 2019.
Total liabilities recorded for the period under review also saw a surge from Ghs 2.5 billion to Ghs 3.3 billion in 2019 and 2020 respectively.