Republic Bank Posts 51.7% Increase in Profit-After-Tax for Third Quarter 2024

Republic Bank Ghana Plc has recorded a notable surge in its total assets for Q3 2024, underscoring the bank’s robust financial performance and growth trajectory.

The bank’s assets increased significantly by 43.7% year-on-year, rising from GHS 6.2 billion in Q3 2023 to GHS 8.9 billion in Q3 2024.

This growth translates into an additional GHS 2.7 billion in asset value over the period.

The increase in assets is largely attributed to a substantial 73.9% rise in cash and cash equivalents, which closed the quarter at GHS 3.7 billion.

Investment securities also saw an impressive climb of 75.3% to GHS 1.8 billion, while loans and advances to customers grew by 33.7% to GHS 2.9 billion, reflecting the bank’s strategic focus on expanding its lending portfolio.

In terms of liabilities, Republic Bank Ghana’s total liabilities shot up by 46.5%, reaching GHS 8 billion, up from GHS 5.4 billion recorded in Q3 2023.

The bank also posted a strong profit-after-tax of GHS 128 million, marking a 51.7% jump from the GHS 84.5 million reported in the same period last year.

However, the bank’s Capital Adequacy Ratio (CAR) saw a slight dip, ending Q3 2024 at 15.59%, compared to 17.48% in Q3 2023.

Although still above regulatory thresholds, the dip reflects increased risk-weighted assets.

On the asset quality front, non-performing loans (NPLs) recorded a marginal decline from 16.80% to 16.51%, indicating a mild improvement in loan recovery strategies.

To address the NPL ratio more aggressively, the bank may need to bolster its loan recovery mechanisms going forward.

Source:norvanreports.com