Some banks in Ghana have recorded profits within the first quarter of 2019 after the Bank of Ghana’s (BoG) $77 million (GH₵400 million) recapitalisation requirement was enforced.
4 banks in Ghana which made profit in the 1st quarter of 2019 after recapitalisation The profit comes as these banks are able to undertake additional transactions including assets and investments, a condition which came along with the recapitalisation requirement policy.
The Bank of Ghana introduced the $77 million (GH₵400 million) recapitalisation requirement for universal banks in the country to meet before the start of this year.
The requirement was aimed at strengthening and making the banking sector more resilient to shocks as well as to help reposition the banks to better support the growing needs of the Ghanaian economy.
Some banks who met the requirement have hence been noted to have met the aim of the policy as they make profits in the first quarter of the year.
Here are 4 banks which recorded profit in the first quarter of 2019
1. Republic Bank
According to its unaudited March 2019 financials, Republic Bank recorded a 29 percent increase in its profit, from $2.2 million (GH₵11.3 million) a year before to $3.1 million (GH₵16 million) in the first three months of 2019. Increase in interest and operating income contributed significantly to the growth in the bottom line of the listed bank.
In terms of liquidity, the capital adequacy ratio shot up from 21.80 percent in 2018 to 30.12 percent. This was basically due to the increase in the stated capital, signalling the strength of the bank.
Non-performing loans importantly reduced to 18.96 percent in March 2019 from 23.85 percent.
2. Zenith Bank
For Zenith, one of the high rising tier one banks, profit went up significantly by 36 percent to GH₵66 million at the end of the first quarter of 2019. In March 2018, the profit was $8 million (GH₵41.7 million). The significant increase comes from growth in interest income particularly loans and net trading income or transfers.Customer Deposit at the end of March 2019 was $656 million (GH₵3.4 billion), as against $ 617 million (GH₵3.2 billion) the same period last year.Its stated capital remained however unchanged at $77 million (GH₵400 million), whilst statutory reserves was $47 million (GH₵243 million) at the end of March 2019. 3. Ghana Commercial Bank (GCB) Ghana’s biggest bank, GCB Bank on the other hand, witnessed a 42.7 percent growth in […]