Republic Bank nearly doubles profit in Q2 2021
Republic Bank Plc, for the second quarter of this year, posted a profit-after-tax of Ghs 43 million, nearly doubling its profit to what was recorded in Q2 2020.
The recorded profit compares favourably with the Ghs 24 million profit-after-tax posted for the same period last year.
An examination of the bank’s Q2 2021 Unaudited Financial Statement indicates that the growth in profit was on the account of increments in the bank’s net interest and operating incomes.
Net interest and operating incomes on a year-on-year (yoy) basis grew from Ghs 118 million to Ghs 138 million and Ghs 157 million to Ghs 180 million respectively.
The recorded profit of the bank marginally increased the value of its asset as Republic Bank’s total assets value as at end-June 2021, was Ghs 3.75 billion from the end-June 2020 recorded total assets value of Ghs 3.43 billion.
Aside from the profit, the other element that contributed massively to the bank’s assets value growth was its investment securities.
The bank’s investment securities holdings grew from Ghs 876 million to Ghs 1.17 billion yoy.
Loans and advances to customers increased marginally from Ghs 1.50 billion to Ghs 1.58 billion in the review period.
The bank’s cash and cash equivalents pledged and non-pledged trading assets declined considerably. A growth In these assets would have boosted the bank’s total assets value at the end of the second quarter of this year.
Posted liabilities for Q2 2021, stood at Ghs 3.09 billion, an increase of some Ghs 244 million when compared to the Ghs 2.85 billion liabilities recorded in Q2 2020.
The marginal increase in the bank’s liabilities was a result of an increase in deposits from customers.
Deposits from customers grew from Ghs 2.63 billion in Q2 2020 to Ghs 2.83 billion in Q2 2021.
The bank’s asset quality improved slightly as posted non-performing loans (NPLs) for the second quarter was 17.4 percent of total loans made as against the 17.49 percent NPLs posted for Q2 2020.
The bank’s NPL is, however, similar to the banking industry’s NPL of 17 percent.
With regards to provisions made by the bank to cover bad loans as well as protect depositor’s funds, Republic Bank for Q2 2021 posted a Capital Adequacy Ratio (CAR) of 26.33 percent which is well above the Bank of Ghana’s (BoG), 13 percent CAR regulatory requirement.
Examine details of financial statement below: