Republic Financial Holdings: Republic Bank Ghana set to become most profitable subsidiary by 2023

Republic Financial Holdings: Republic Bank Ghana set to become most profitable subsidiary by 2023

Republic Bank Ghana, the local subsidiary of Republic Financial Holdings Limited of Trinidad & Tobago, is set to become the most profitable subsidiary of the Group by December 2023.

Currently the third most profitable subsidiary of the Group, the company’s new goal and drive of becoming the most profitable subsidiary is being championed by the bank’s newly appointed Managing Director, Benjamin Dzoboku.

Sharing his short to medium term goals in an exclusive interview with norvanreports barely a week into his new role as the MD of Republic Bank Ghana, Mr Dzoboku averred his main aim is to significantly drive upwards the profitability of the bank.

This, he noted, will be done by moving the bank from its current Tier 4 position to a Tier 1 position, supported by the re-alignment and re-organization of some departments in the bank.

For instance, the credit department of the bank, he asserts, will have to be re-aligned and re-organized to help drive down the bank’s non-performing loans (NPLs) – this, he however noted, has been done within his first 5 days in office.

“As a bank we were in the Tier 3 position in December last year, but we slipped to Tier 4 just this year – 2022 – and we need to get back to Tier 3 by December 2022 and then to Tier 2 with the objective of moving to Tier 1.

“As part of my short to medium term goals, we should see Republic Bank Ghana becoming the most profitable bank in the Republic Group by December 2023. We are going to be the number 1 performer in terms of profitability in the group, already we are number 3 in terms of profitability,” Mr Dzoboku told norvanreports.

A Tier 1 bank is a bank with a Tier 1 capital consisting of shareholders’ equity and retained earnings—disclosed on their financial statements—and is a primary indicator to measure a bank’s financial health.

These funds come into play when a bank must absorb losses without ceasing business operations. Tier 1 capital is the primary funding source of the bank. Typically, it holds nearly all of the bank’s accumulated funds.

These funds are generated specifically to support banks when losses are absorbed so that regular business functions do not have to be shut down.

Republic Bank Ghana at the end of the first quarter of 2022, posted a profit-before-tax of GHS 42m up from the GHS 33m recorded in the first quarter of 2021.

Profit-after-tax however amounted to GHS 27.4m.

With regards to the bank’s total asset base, Republic Bank for the review period between Q1 2021 and Q1 2022 grew its asset value base to GHS 4.1bn.

The growth represents a more than GHS 297m year-on-year increase in the bank’s assets base when compared to the GHS 3.8bn total assets value recorded same period last year – Q1 2021.

In all, there are 21 subsidiaries of Republic Financial Holdings Limited (RFHL). Find below the list of the 21 subsidiaries of RFHL: