Absa Bank adds GHS 4.5bn to asset base YoY; assets value now GHS 17.7bn
South African-owned bank, Absa Bank (Ghana), on a year-on-year (YoY) basis increased its total assets value by a whooping GHS 4.5bn.
Within the period of Q1 2021 and Q1 2022, the bank per its first quarter financial results for 2022, grew its total assets value to GHS 17.7bn from the previous year’s GHS 13.2bn total assets value.
A perusal of Absa Bank’s financial results for Q1 2022 reveals that elements such as cash and cash equivalents, non-pledged trading assets, loans and advances to both banks and customers as well as its investment securities holdings accounted for the surge in asset value.
In Q1 2022, the aforementioned elements increased to GHS 2.1bn from GHS 1.8bn; GHS 3.3bn from GHS 2.5bn; GHS 1.1bn from GHS 335m; GHS 5.1bn from GHS 4.2bn and GHS 4.4bn from GHS 3.4bn respectively.
Liabilities for the review period increased by almost the same margin as the bank ended Q1 2022 with total liabilities of GHS 15.2bn, some GHS 4.2bn increase from last year’s GHS 11bn total liabilities.
Mainly accounting for the increase in liabilities were the GHS 9bn deposits mobilised from customers of the bank as well as the GHS 4.5bn borrowings/loans taken by the bank.
Despite the surge in total assets value, Absa Bank for Q1 2022, posted a net profit of GHS 174m, some GHS 21m less the GHS 195m net profit recorded in Q1 2021.
Financial soundness indicators such as the Capital Adequacy Ratio (CAR), Non-Performing Loans (NPLs) and Liquidity Ratio of the bank for the review period declined slightly.
The bank’s CAR for instance declined from 25.35% in Q1 2021 to 21.86% in Q1 2022 – it however, remains above the Bank of Ghana’s 13% minimum CAR requirement.
Absa Bank’s NPLs also increased to 9.2% from the previous year’s NPLs of 8.36%. Liquidity Ratio also for the review period fell to 79.23% from last year’s 84.52%.
Peruse details of the financial statement below:
Financial Publication March by Fuaad Dodoo on Scribd
