Republic Bank Assets Hit GH¢3.34bn

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REPUBLIC BANK Ghana and its subsidiaries recorded a 16.2% increase in total assets from the GH¢2.88 billion recorded in 2018 to GH¢3.34 billion as at year end, 2019.

Deposits from customers improved from the GH¢2.16 billion reported in 2018 to GH¢2.52 billion as at the close of the year 2019.

Profit-after-tax for the year 2019 mushroomed year-on-year by 180.6% to GH¢79.1 million.

Charles William Zwennes, board chairman of the bank who disclosed this, said such achievements of the bank for the period under review were underpinned by improvements in interest income and impairment charges.

He said net-interest income grew year-on-year by 23.8% to GH¢232.9 million, whereas impairment charges dwindled year-on-year by 66.9%, amounting to GH¢19.1 million compared with the GH¢57.8 million as at December 2018.

He said the group’s value additions for the 2019 financial year was GH¢74.62 million, adding that despite the depreciation of the Ghana Cedi against the major foreign currencies during the year, the group’s value in US dollar terms as at the end of the current year stood at US$103.87 million (2018: US$103.77 million).

RBGH’s earnings per share (basic EPS) ratio also appreciated from GHP5.04 to GHP9.19 in 2019.

On the liquidity front, the group ended the 2019 financial with a liquid ratio of 130.69% (2018: 122.69%) and a growth of 25.52% in its cash and cash equivalent over the prior financial; and return on shareholders’ fund improved from 7.36% for 2018 to 14.56% for the current financial year.

Commenting on dividends for shareholders, he noted, “Dear shareholders, we are aware of the importance of dividends, and in furtherance of this, we have increased profitability and subsequently increased shareholders’ value. Unfortunately, the increase in the profitability was not enough to reduce the debit balance in the income surplus account, therefore we are unable to pay dividend this year.”

The board chairman added that going forward the impact of the Covid-19 pandemic on economic activity would play a major role in the operations and profitability of the bank. They are therefore compelled to find new and effective ways of doing business whiles optimizing returns.