Absa Bank Ghana crosses GH¢1bn profit before tax
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Loading... - Eric Armah
- 31 Mar 2022
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This is 55 per cent higher as compared to the previous year, primarily reflecting the shift in economic activity, credit extension and the improvement in the performance of loans. The feat also meant that the bank was able to fall on fewer provisional reserves against expected losses, thereby shoring up profitability.
As a result, the bank has returned to its earlier position of being the industry’s leader in profitability, and again reflecting a consistent trend after 2020 when it saw the impact of COVID come through in the financial results.
According to a statement issued in Accra and signed by the Head, Corporate Communications and External Relations of the bank, Mr Ebenezer Amankwah, and copied to the Graphic Business, the bank recorded an increase in revenues by 17 per cent to GH¢1.6 billion while impairment also saw a reduction by 35 per cent.
Explaining that, it said the revenue increase was largely driven by capital retention, strong liability growth and good growth in loans and advances. This was further supported by an active adoption of digital channels by the bank’s dynamic base of clients and customers.
It said the positive results were driven by capital retention, strong liability growth and good growth in loans and advances. This was further supported by an active adoption of digital channels by the bank’s dynamic base of clients and customers.
The bank also attributed the positive feat to what it described as emerging recovery of the Ghanaian economy in 2021, from a difficult position the previous year.
That, according to the bank, came on the back of a return to normal activity by the Ghanaian economy after a challenging 2020 due to the COVID-19 pandemic.
The bank’s customer assets was up seven per cent to GH¢4.8 billion while customer deposits were up by 22 per cent to GH¢7.9 billion.
Return on equity improved by 6.6 per cent to 32.6 per cent. Read More...
