Republic Bank Ghana doubles profit; strengthens loan asset quality
Republic Bank Ghana for the period ended September 2021 – Q3 2021 – has posted a profit Ghs 60.8 million.
Compared to Q3 2020’s profit of Ghs 30.3 million, the posted profit for Q3 2021 marks a 100 percent increment in the bank’s net profit or total comprehensive income.
A perusal of Republic Bank’s Q3 2021 Financial Statement by norvanreports reveals that year-on-year increments in the bank’s net interest income and other operating income accounted for the surge in the bank’s profit.
Net interest income and other operating income to the bank for the review period amounted to Ghs 209 million and Ghs 275 million from the previous figures of Ghs 182 and Ghs 239 million respectively in Q3 2020.
A peek at the bank’s assets value for the review period showed that Republic Bank at the end of September 2021, had grown the value of its assets by a little over Ghs 201 million.
Recorded assets value at end-Q3 2020 was Ghs 3.60 billion, at end-Q3 2021, Republic Bank’s assets value had grown to Ghs 3.80 billion.
The bank attributed the growth in the value of its assets to increased holdings of investment securities and marginal increment in loans and advances made to customers.
Investment securities, loans and advances to customers by the bank at the end of the third quarter of 2021 stood at Ghs 1.14 billion from Ghs 835 million in Q3 2020 and Ghs 1.62 billion from Ghs 1.55 billion in Q3 2020 respectively.
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In terms of the bank’s liabilities, posted liabilities at end-Q3 2020 was Ghs 3.13 billion, a marginal increase of some Ghs 110 million from the Ghs 3.02 billion liabilities recorded in Q3 2020.
Republic Bank for the period under review strengthened its loan asset quality, reducing Non-Performing Loans (NPLs) from 19.27 percent in Q3 2020 to 17.56 percent in Q3 2021.
The reduction in the bank’s NPLs could be attributed to some loan recovery strategies employed by the bank due to the pandemic-induced loan repayment challenges faced by businesses and households.
The bank for the review period also increased its Capital Adequacy Ratio (CAR) from 24.94 percent in Q3 2020 to 26.36 percent in Q3 2021, which is way above the Bank of Ghana’s regulatory CAR requirement of 13 percent.
Examine Q3 2021 Financial Statement of Republic Bank Ghana below:
pdf (18) by Fuaad Dodoo on Scribd
