Republic Bank Ghana sees strong recovery in 2023; profit soars to GHS 130.4 million
Republic Bank Ghana has reported a robust financial performance for the fiscal year 2023, marking a notable turnaround from the challenges faced in the preceding year.
According to the bank’s Q4 2023 financial statement, it recorded a profit of GHS 130.4 million, a significant rebound from the GHS 66.8 million loss posted in 2022 as a result of the Government’s domestic debt restructuring.
The surge in profit translates into a remarkable earnings per share of GHS 15.31, a stark contrast to the previous year’s loss per share of GHS 7.84, indicating a commendable revival in shareholder value.
Key drivers behind the bank’s impressive performance include a substantial increase in interest income, which soared to GHS 947 million in 2023.
Additionally, the bank witnessed substantial growth in its asset base, reaching GHS 6.95 billion, reflecting a commendable increase of GHS 1.87 billion from the previous year’s value of GHS 5.08bn.
This expansion in assets was primarily fueled by significant growth in cash and cash equivalents (GHS 2.98bn), loans and advances to customers (GHS 2.42bn), and investment securities (GHS 1.06bn).
However, it’s noteworthy that the bank’s liabilities also experienced growth, reaching GHS 6.16 billion by the end of 2023, up from the GHS 4.41 billion recorded in the previous year.
Republic Bank Ghana within the review period witnessed its capital adequacy ratio (CAR) decline to 19.2% in 2023 from 21.2% in the previous year. Nonetheless, the bank demonstrated commendable improvement in loan asset quality, with its non-performing loans ratio (NPLs) declining by 3.9% to 15.95% in 2023 from 19.85% in 2022, indicating a strengthening asset quality portfolio.
Republic Bank Ghana’s resurgence in 2023 underscores its resilience and strategic initiatives amid challenging economic conditions. The bank’s ability to navigate uncertainties and deliver substantial growth reflects its commitment to delivering value to stakeholders while maintaining prudent risk management practices.
