Zenith Bank reduces NPLs; increases CAR to 43%
Zenith Bank Ghana for the third quarter of 2021 strengthened its loan asset quality as the bank reduced its non-performing loans (NPLs) by 1.46 percent.
Zenith Bank’s NPLs at the end of Q3 2021 stood at 7.58 percent from the previous 9.04% NPLs recorded in Q3 2020.
The strengthening of the bank’s loan asset quality and hence its reduction in NPLs can be attributed to some specific loan recovery strategies being used by the bank.
Also, the bank’s Capital Adequacy Ratio (CAR) for the period ended Q3 2021 stood at 43.86 percent, a significant increment from the 3741 percent CAR posted same period last year.
Zenith Bank’s CAR is significantly above the Bank of Ghana’s (BoG) regulatory CAR requirement of 13 percent.
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.
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.
The bank’s total assets value and liabilities for the review period recorded significant marginal increments
Total assets value of Zenith Bank increased marginally from Ghs 7,025 million in Q3 2020 to Ghs 8,553 million in Q3 2021.
Total liabilities on the other hand also decreased marginally from Ghs 5,602 million in Q3 2020 to Ghs 7,016 million in Q3 2021.
Examine details of FBN Bank’s Q3 Financial Statement below:
2021 q3 Financial Report Publication by Fuaad Dodoo on Scribd
