Republic Bank Grows Asset Base By 36.68%; Net Profit Rise To GHS 88.5M
Republic Bank Ghana Plc grew its asset base by 36.68 percentage points year-on-year from GHS 6.22bn in Q2 2023 to GHS 8.62bn in Q2 2024.
Growth in the bank’s asset base was driven largely by increments in cash and cash equivalents, investment securities as well as loans and advances to corporate and individual customers of the bank.
Within the review period, cash and cash equivalents grew from GHS 2.28bn to GHS 3.57bn; investment securities rose from GHS 1.05bn to GHS 1.35bn; and loans and advances to customers increased from GHS 2.14bn to GHS 2.80bn.
Liabilities of the bank within the same review period grew from GHS 5.47bn in Q2 2023 to GHS 7.74bn.
Growth in the bank’s liabilities was mainly on the account of increment in deposits from corporate and individual customers of the bank.
Deposits at Republic Bank rose from GHS 4.31bn in Q2 2023 to GHS 6.08bn in Q2 2024.
Increased deposits at the bank by customers imply a strengthening of the bank’s ability to undertake more credit creation activities – lend more to businesses and individuals.
The Trinidad and Tobago-owned bank recorded some GHS 88.5m.in net profit at end-Q2 2024, an appreciable increase from the GHS 88.1m net profit recorded in Q2 2023.
Increment in the bank’s net profit was on account of growth in its net interest income which ended the second quarter of 2024 at GHS 292m from the GHS 240m net interest income recorded in the second quarter of 2023.
Despite the recorded growth in assets value and net profit of the bank, the Capital Adequacy Ratio (CAR) of Republic Bank reduced to 15.44% from 19.44% indicating a 4 percentage points year-on-year decrease in CAR.
Despite the decline in CAR, the bank’s capital adequacy ratio remains fairly above the 13% CAR requirement by the Central Bank.
The capital adequacy ratio (CAR) is a measure of how much capital a bank has available, its purpose is to ensure that banks have enough capital on reserve to handle a certain amount of losses, before being at risk of becoming insolvent.
Loan asset quality of the bank measured by non-performing loans (NPLs) improved slightly with Republic Bank ending Q2 2024 with an NPL ratio of 17.5% from 18.45% in Q2 2023.
