FBN Bank records GHS 61.6m net profit; posts 56% CAR at end-2022

First Bank of Nigeria (FBN) Ghana for the year 2022 recorded a net profit of GHS 61.6m.

The GHS 61.6m profit recorded in 2022 is a significant achievement by FBN given the fact that most banks in the country for the review period recorded net losses as result of the domestic debt exchange programme undertaken by government.

Also, impairment costs on financial assets held by the bank within the review period rose to GHS 215m from the previous year’s figure of GHS 14.3m on the back of the domestic debt exchange programme.

The recorded net profit for 2022 is however lower than the GHS 73.5m profit recorded in 2021.

Assets value of the bank within the review period grew from GHS 1.91bn in 2021 to GHS 2.83bn in 2022 driven mainly by increments in the bank’s cash and cash equivalents (GHS 621m) and investment securities (GHS 1.5bn).

Total liabilities of the bank also grew to GHS 2.18bn from GHS 1.32bn on the account of increments in customer deposits which stood at GHS 1.2bn at end-2022.

Capital Adequacy Ratio (CAR) of FBN declined from 62.9% in 2021 to 56.9% in 2022, despite the decline the bank’s CAR still remains significantly above the BoG’s 10% minimum CAR requirement.

Loan asset quality of FBN within the review period deteriorated significantly with the bank’s non-performing loans ratio rising to 24.9% from 4.25%.

Source: norvanreports.com