THE recent banking reforms are paying off as banks that have so far released their unaudited 2019 half year results have registered positive gains.

GCB, ADB, StanChart, CAL and others have all released sterling first-half year financial results with strong balance sheets. Indigenous banks have, so far, impressed with positive financial results. They include Fidelity (GH₵117 million profit), Consolidated (GH₵115 million profit), Prudential (GH₵22 million profit) and National Investment Bank (GH₵9 million profit).

GCB Bank

Ghana’s biggest bank, GCB witnessed a whopping 53 percent increase in profit from GH₵86 million in June 2018 to GH₵131.7 million in June 2019.

This was attributed to huge gains from increased interest income (interest from loans and advances and investments) and lower interest expense. Interest expense dropped from GH₵233 million a year ago to GH₵195.5 million in the first half of this year.

The strong performance pushed earnings per share from 65 pesewas in June 2018 to 99 pesewas in June to 2019. GCB seems now to be reaping from the takeover of UT and Capital Bank in 2017.

The bank stated capital moved from GH₵100 million a year ago to GH₵500 million in June 2019.
For the balance sheet, customers deposit stood at GH₵8.4 billion in June 2019 whilst loans and advances was GH₵3.1 billion.

Capital Adequacy Ratio which determines the strength and stability of the Bank stood at 18.1 percent, up from 16.8 percent a year ago whereas Non Performing Loans (NPLs) was low at 8.0 percent.


ADB also saw its profit going up by 22.1 percent to GH₵25.1 million at the end of the first half of 2019.

It registered a profit of GH₵20.5 million during the same period last year.
The major contributor to the bottom line was as a result of reduction in impairment. Loan loss was GH₵2. 5 million at the end of June 2019 as against GH₵13.1 million last year.

On the balance sheet, the bank’s stated capital shot up from GH₵275 million in June 2018 to GH₵571. 7 million. This was as a result of the GAT Fund which is a government supported Special Purpose Vehicle and will be paid within a period of five years.
CAR moved from 15.92 percent in June 2018 to 16.63 percent in June 2019. NPL was however a major concern and still high at 46.38 percent.


For Standard Chartered Bank, it’s profit however dropped but remained strong. It declined by about GH₵4. 0 million, from GH₵137. 8 million in June 2018 to GH₵133.0 million in June 2019. Earnings per share thus dropped from GH₵1.02 in June 2018 to 99 pesewas in June 2019.

The reduction in the bottom line was due to the high impairment on the financial assets which was GHc74. 5 million in the first half of the year compared to GH₵33.6 million in June of 2018, as well as about GH₵2.4 million increase in operating expenses.

The bank’s stated capital stood at GH₵400 million compared with GH₵121.6 million the same period last year.
NPL was still high at 22.36 percent in first half of this year, from 48.16 percent a year ago.

According to the May 2019 Banking Sector Report, the 24 banks operating in the country recorded after tax profit of GH₵1.1 billion, representing a growth of 38.9 percent in the first four months of the year.
The higher growth was underpinned by higher growth of net interest income which grew by 21.6 percent.

CAL Bank

For CAL Bank, profit went up by 17.7 percent, from GH₵80.2 million a year ago to GH₵94.4 million in June 2019.

The increase in profit was also due to significant reduction in interest expense and increased interest income. Interest expense came down from GH₵131.7 million a year before to GH₵167 million in June 2019, whilst interest income went up from GH₵367 million in June 2018 to GH₵409 million in June 2019.

Balance sheet size increase from GH₵4.6 billion in June 2018 to GH₵6.2 billion in June 2019, signaling a strong balance sheet. Deposits from customers was GH₵3.7 billion, up from GH₵2.8 billion a year ago, whilst loans and advances was GH₵2.4 billion in June 2019, from GH₵2.0 billion the same period in 2018.

Regarding some key benchmark indicators, CAR was 18.6 percent in June 2019, down from 21.5 percent, whilst NPL was 9.0 percent, lower than the 9.9 percent registered in June 2018.

Credit: The Finder

(By Augustine AMOAH)