"Republic Bank Ghana Posts Strong Q1 Profit Amid Tight Credit Environment"

" Republic Bank Ghana Posts Strong Q1 Profit Amid Tight Credit Environment \r\n\r\nRepublic Bank Ghana PLC has reported a solid first-quarter performance for the financial year 2025, recording a 63.5 million Ghana cedis profit at the group level, a 26.1% increase compared to the 50.4 million cedis posted in the same period in 2024. The achievement comes despite a challenging macroeconomic backdrop and tight credit conditions.\r\n\r\nThe bank\u2019s net interest income rose 17.6% year-on-year to GH\u00a2182.2 million , up from GH\u00a2154.9 million , supported by higher interest rates and increased lending activity. Total interest income stood at GH\u00a2324.2 million , driven by a surge in loans and advances to customers, which grew from GH\u00a22.4 billion to GH\u00a23.0 billion , representing a robust 21.9% year-on-year expansion.\r\n\r\n\u201cWe are pleased with the resilience of our core operations,\u201d said Managing Director Benjamin Dzoboku , highlighting the bank\u2019s improved cost efficiency and asset quality. \u201cOur performance reflects disciplined risk management and a strong deposit mobilization drive.\u201d\r\n\r\n Fee Income Rebounds; Impairments Narrow \r\n\r\nNet fee and commission income slightly declined at the bank level but remained strong at the group level, totaling GH\u00a235.2 million , nearly flat from GH\u00a236.2 million in Q1 2024. Trading income held steady at GH\u00a210.2 million , while investment-related income rebounded sharply to GH\u00a22.9 million , driven by gains on fair-value-through-profit-and-loss (FVTPL) securities.\r\n\r\nCrucially, impairment losses on financial assets dropped by more than 54%, down to GH\u00a26 million from GH\u00a213.2 million , underscoring improving asset quality. The bank\u2019s non-performing loan (NPL) ratio improved significantly to 15.85% from 19.30% a year earlier, even as total loans expanded.\r\n\r\n Cost Discipline and Regulatory Resilience \r\n\r\nTotal operating expenses for the group rose to GH\u00a2139.4 million , compared to GH\u00a2120.6 million last year, due largely to increased personnel costs and depreciation charges. Nonetheless, the bank maintained profitability, reporting a pre-tax profit of GH\u00a295.1 million , up 21.3% year-on-year.\r\n\r\nRepublic Bank's capital adequacy ratio (CAR) stood at 18.85% , well above the regulatory minimum, while its liquidity ratio reached 121.69% , reflecting a strong buffer in the face of financial volatility.\r\n\r\nDespite the bank maintaining regulatory compliance on all fronts, it disclosed a single breach unrelated to statutory liquidity, which incurred a modest GH\u00a2240,000 sanction .\r\n\r\n Deposits, Liquidity, and Investment Activity \r\n\r\nCustomer deposits rose by 11.3% year-on-year to GH\u00a26.31 billion , reflecting continued customer confidence. Borrowings, however, saw a significant increase to GH\u00a21.54 billion from GH\u00a2921.6 million , likely due to funding for expanding lending operations.\r\n\r\nInvestment securities increased to GH\u00a21.72 billion , and cash and equivalents rose sharply to GH\u00a24.64 billion from GH\u00a23.4 billion , indicating ample liquidity. The bank also recorded strong positive cash flow from operations, totaling GH\u00a2182.8 million .\r\n\r\nOn the investment side, the bank was aggressive, with GH\u00a22.96 billion worth of securities sold and GH\u00a22.77 billion purchased, suggesting proactive portfolio reshuffling amid fluctuating market yields.\r\n\r\n Forward Outlook \r\n\r\nAnalysts believe the bank is strategically positioned to capitalize on Ghana\u2019s anticipated economic rebound in H2 2025, especially if inflation and lending rates stabilize.\r\n\r\nHowever, managing asset quality will remain a key concern, especially as sector-wide restructuring efforts and currency depreciation pressures continue to affect loan recoveries.\r\n\r\nBoard Chairman Jonathan Prince Cann reaffirmed the board\u2019s commitment to sustainable growth and strong governance, adding that Republic Bank\u2019s forward strategy will emphasize \u201cresilience, digital transformation, and inclusive banking.\u201d\r\n\r\n "

"Republic Bank Ghana Posts Strong Q1 Profit Amid Tight Credit Environment"

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