The Republic Bank (Ghana) Plc, one of the country’s foremost banks, witnessed a 20.05 per cent growth in assets primarily due to loan and advances funded by deposit growth.
Mortgage loans formed the biggest contributor in the loan portfolio with a year-on-year growth of 32.57 per cent.
This achievement, according to the bank, reiterates the fact that it is maintaining its position as the pacesetter and preferred mortgage provider in Ghana.
The bank, however, posted a loss in the year under review, which the Managing Director, Benjamin Dzoboku, attributed to the government’s Domestic Debt Exchange Programme (DDEP) and the mark-to–market losses on investment.
Again, he also mentioned the higher provision for impairment on financial assets which also contributed to the loss contrary to the profit position gained in the 2021 financial year.
The bank posted a loss of GH¢66.8 million in the 2022 financial year as against the GH¢81.7 million it recorded in the previous year.
The unfortunate development in the year under review ended a streak of huge profits the bank had been recording in the last five years and beyond and makes the bank, one of the many to have suffered heavily due to the recent developments in the economy which has forced the country to seek an International Monetary Fund (IMF) bailout.
The managing director of the bank, in a statement released after the bank’s 32nd Annual General Meeting (AGM), held in a hybrid format of both virtual and in-person at the Accra City Hotel in Accra was, however, proud of the bank’s achievements in other areas.
Despite the loss position, “we saw significant growth in year-on-year improvement on several income lines such as Net Interest Income and Non–Interest income which grew by 23.53 per cent and 43.878 per cent respectively.
The increase in net income reflects a robust growth particularly in trading.”
On the issue of dividends, the bank, just like majority of its competitors, could not pay dividends to shareholders.
The managing director, however, assured shareholders that dividend pay outs will be made in 2025 by which time the Bank of Ghana’s embargo on dividend payments would have been lifted.
He expressed gratitude to the bank’s stakeholders, the board of directors and customers for their support and wished for a better year and beyond.
The acting Board Chairman of the bank, Paul King Aryene, informed shareholders of the bank’s commitment towards the Sustainable Banking Principles (SBP) in accordance with the regulator’s reporting requirement.
“Overall, our bank has made notable progress in meeting the SBPs including incorporating Environmental and Social Management systems in our credit delivery process, enhancing good corporate governance and ethical standards through diverse board sub committees and promoting gender equality and diversity through equal opportunity for all stakeholders,” he added.
The acting board chairman of the bank expressed gratitude to shareholders, the bank’s cherished customers, directors, management and staff for their support in the year under review and requested their unwavering support in the years ahead.
‘Our success is dependent on the success of our clients, the strength of our communities and the well-being of our employees,” Mr Aryene added.