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Tuesday, April 16, 2024

Strong capital and 178% growth in PBT –

Despite Ghana’s recent challenging macroeconomic conditions, FBNBank Ghana Limited posted significant growth in key variables in the 2023 financial year.  The performance underscores the bank’s resolve to serve its clients by putting them first and support the economy through cutting-edge financial intermediation.

The published financial statements of the bank principally showed that FBNBank Ghana remains healthy and solvent. The Capital Adequacy Ratio (CAR), a key indicator of solvency and healthy status, has consistently stayed above the regulatory benchmark. In 2022, the bank closed with CAR of 56.9% compared to industry average of 16% and the regulatory benchmark of 10%. At the end of the 2023 financial year, the bank’s CAR stood at 52.68% compared to 14% average for the industry.

Due to its high CAR, the confidence of all stakeholders the Ghanaian public in the bank’s stability remains high. As a result of that, the bank’s total customer deposits increased by 66% to over GHS2bn in 2023. Also, loan and advances for the period increased by 22% which is an indication of contributing to the growth of the real sector.

In addition, FBNBank showed a strong liquidity position that reflects its ability to satisfy the financial needs of its customers. Recent statistics from the Bank of Ghana’s Summary of Economic and Financial Data showed that, the banking industry’s liquidity stood at 37% in 2023. However, FBNBank’s liquidity ratio stood at 106% driven by growth in cash and cash equivalent balance of 96% indicating its ability to meet especially its short-term obligations to customers. Consequently, the total asset of the bank increased from GHS2.83bn in 2022 to GHS3.69bn in 2023 representing a growth of 30% within the period. This significant growth represents the confidence of the Bank’s cherished customers in the brand and institution in the safety of their deposits.

Aside significant growth in its balance sheet, the Profit Before Tax (PBT) of the bank grew by 178%, moving from GHS102.4m in 2022 to GHS284.7m in 2023. This was achieved through robust cost management, process improvement and diversification of revenue streams by leveraging on technology and other innovative ways of banking.

As a result, key revenue lines recorded remarkable growth in the period relative to cost lines. Net Interest Income of the bank increased by over 200% from GHS204.9m in 2022 to 616.4m in 2023. Also, net income from fees and commissions increased by 64% from GHS17.6m in 2022 to GHS28.9m in 2023.

FBNBank also continues to deliver impressive returns to its shareholders. The return on equity (post tax) for the 2023 financial year stood at 27% compared to 10% in the previous year. This was largely due to strategic decisions and leadership at all levels of operations of the bank.

Commenting on this sterling performance, MD/CEO of FBNBank Victor Asante stated that “the remarkable financial growth in 2023 was as a result of consistent and disciplined execution of our strategies including deployment of innovative technology-driven products, strong risk management framework, sound internal control system and expansion of our services to new markets and corporate entities”.

The 2023 performance of FBNBank shows the bank’s continuous growth in the Ghanaian market and management’s effort to leverage 130 years of experience of its parent company First Bank of Nigeria to serve its clients and support the growth and development of the economy.

Source: FBNBank Ghana Limited

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