Republic Bank grows assets by GHS 578m YoY; strengthens CAR
Republic Bank Ghana, subsidiary of Republic Financial Holdings Limited of Trinidad and Tobago, for the year ended 2021 recorded an increase of GHS 578m in its total assets value.
Republic Bank per its end-December 2021 Financial Statement, affirms a total asset value of GHS 4.22bn from the GHS 3.64bn total assets value recorded at end-December 2020.
Accounting for the increase in the bank’s assets value was a significant increment in Republic Bank’s investment securities which grew from GHS 994m in 2020 to GHS 1.24bn in 2021.
Loans and advances to customers, cash and cash equivalents and pledged assets all rose from GHS 1.52bn to GHS 1.74bn, GHS 906m to GHS 946m and GHS 42m to GHS 74m in 2020 and 2021 respectively.
Total liabilities for the review period increased from GHS 3.03bn to GHS 3.53bn, an increase of some GHS 497m on a year-on-year (YoY) basis.
Accounting for the increase were elements which as deposits from customers and borrowing by the bank which rose from GHS 2.76bn to GHS 3.16bn and GHS 117m to GHS 136m respectively.
With regards to Capital Adequacy Ratio (CAR), Republic Bank strengthened marginally its CAR as it ended 2021 with a CAR of 27.63% – some 0.97% above 2020’s CAR of 26.66%.
The Bank’s CAR of 27.63% is more than double the banking industry’s average CAR of 11.5%.
With a CAR of 27.63%, it means that Republic Bank has enough capital to absorb potential losses incurred due to bad loans.
It also means that the bank is highly unlikely to become insolvent and very capable of protecting depositors’ monies.
The capital adequacy ratio (CAR) is a measurement of a bank’s available capital expressed as a percentage of a bank’s risk-weighted assets and liabilities.
Capital Adequacy Ratios mandate that a certain amount of the deposits be kept aside whenever a loan is being made. These deposits are kept aside as provisions to cover up the losses in case the loan goes bad.
Non-Performing Loans (NPLs) for the review period was significantly reduced by the bank thereby strengthening the bank’s asset quality.
Republic Bank reduced it’s NPLs from 19.03% to 15.32% (slightly above the industry’s average of 15.2%) in 2021.
The reduction in the bank’s NPLs signifies effective loan recovery methods being used by the bank.
In terms of profit recorded for the review period, Republic Bank for the year 2021 posted a net profit of GHS 81.6m, some GHS 30m more than the previous year’s net profit of GHS 51.6m.
Peruse Financial Statement:
Rbgh Financials_31 December 2021_colour_21.02.2022 (3 Full Pages) by Fuaad Dodoo on Scribd
