Stanbic Bank grows assets value by staggering GHS 4.5bn amid domestic debt restructuring programme
Despite the impressive growth in assets value, Stanbic Bank did record losses on bond assets held by the bank as a result of the government’s domestic debt exchange programme. The bank recorded a loss of GHS 62.5m at end-December 2022, compared to a profit position of GHS 405m previously.
Stanbic Bank Ghana has grown its assets value by an impressive GHS 4.5bn, according to the bank’s recently released 2022 financial statement. This marks a notable improvement from the bank’s total assets value of GHS 14bn recorded at end-December 2021. The growth in assets value was mainly driven by a significant increase in Stanbic Bank’s cash and cash equivalents from GHS 3.3bn in 2021 to GHS 8.5bn in 2022.
Despite the impressive growth in assets value, Stanbic Bank did record losses on bond assets held by the bank as a result of the government’s domestic debt exchange programme. The bank recorded a loss of GHS 62.5m at end-December 2022, compared to a profit position of GHS 405m previously.
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However, the bank’s asset value growth is a testament to the bank’s strong financial position and ability to navigate challenges. The bank has been able to grow its assets value despite the impact of the domestic debt exchange programme and related losses.
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The growth in assets value was also accompanied by a significant increase in liabilities. The bank’s liabilities grew from GHS 12bn in 2021 to GHS 16.8bn in 2022, largely driven by deposits, which amounted to GHS 15.3bn at end-December 2022.
The bank’s non-performing loans (NPLs) ratio worsened from 6.7% in 2021 to 8.9% in 2022. This is a cause for concern for the bank and will require the attention of the management team to reduce the level of NPLs.
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Furthermore, the bank’s capital adequacy ratio declined from 19.2% in 2021 to 12.3% in 2022. This decline in capital adequacy ratio suggests that the bank’s capital position has weakened, and may be unable to meet regulatory requirements.
Stanbic Bank Ghana has recorded impressive growth in assets value despite challenges faced by the banking industry. However, the bank must address the rise in non-performing loans and the decline in capital adequacy ratio to ensure it remains in good financial health.
Source: norvanreports.com
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