United Bank of Africa (UBA) Ghana, saw its total assets value increase marginally from Ghs 3.8 billion in Q1 2020 to Ghs 4.1 billion in Q1 2021.
The marginal year-on-year increase of a little over Ghs 300 million was driven mainly by cash and bank balances, loans and advances to customers and ‘other assets’.
UBA Ghana’s cash and bank balances recorded for end-March 2021, was Ghs 917 million, an increase of Ghs 391 million from the Ghs 526 million recorded for end-March 2020.
Loans and advances to customers for the period under review increased slightly from Ghs 909 million in Q1 2020 to Ghs 934 million in Q1 2021, due to the fall in credit demand by customers occasioned by the Covid-19 pandemic.
Value of ‘other assets’ held by the bank surged from Ghs 40 million in Q1 2020 to Ghs 122 million Q1 2021.
Total liabilities recorded at end-March 2021, amounted to Ghs 3.16 billion. A slight increment of some Ghs 160 million from the Q1 2020 recorded liabilities of Ghs 3 billion.
With respect to profit made for Q1 2021, the bank’s profit suffered as it declined to Ghs 38 million from the Ghs 55 million profit posted for same period last year.
The decline in the bank’s profit was on the account of decrements in its net interest and operating incomes.
Net interest income fell from Ghs 83 million in Q1 2020 to Ghs 74 million in Q1 2021. Operating income also fell from Ghs 115 million to Ghs 98 over the same period.
An examination of the bank’s Q1 2021 unaudited Financial Statement by norvanreports, revealed an improvement in the bank’s loan asset quality, as its Non-Performing Loans (NPLs) decreased by 6.4 percentage points on a year-on-year basis from 51.2 percent in Q1 2020 to 44.8 percent in Q1 2021.
The bank also, marginally improved its Capital Adequacy Ratio (CAR) increasing it to 24.3 percent end-Q1 2021 – above Bank of Ghana’s 13 percent CAR requirement – from 23.8 percent in Q1 2020.
