15 out of 21 banks recorded losses in 2021 – 2022 Audited Financial Statement

May 2, 2023
15 out of 21 banks recorded losses in 2021 – 2022 Audited Financial Statement: Ghana News

Fifteen out of the twenty-one banks that have released their 2022 Audited Financial Statements in Ghana recorded losses last year, reflecting the challenging economic environment and the impact of the Domestic Debt Exchange Programme or debt restructuring on the operations of financial institutions.

The 2022 Summary Financial Statements of these banks reveal that the impairment of assets was a significant factor, attributed to reduced coupon rates and an extension of the maturity period from five to fifteen years, among other factors.

Consolidated Bank suffered the biggest loss, with approximately GH¢2 billion recorded in 2022, and local banks were among the hardest hit.

However, these financial institutions have shown signs of recovery in the first quarter of 2023, with some recording positive profits.

In 2022, the six banks that managed to register a profit before tax (PBT) were  (GH¢191 million), Societe Generale (GH¢172 million), FBN  (¢GH102 million), and (GH¢91 million).

In terms of impaired assets, incurred the highest loss, writing off GH¢2.12 billion, followed by Consolidated Bank and GCB Bank, which wrote off GH¢2.11 billion and GH¢2.08 billion, respectively.

On the other hand, FBN Nigeria (GH¢212 million), Bank of Africa (GH¢187 million), and Omni BSIC (GH¢149 million) were the least affected.

Regarding the Capital Adequacy Ratio, an important indicator of financial soundness, Consolidated Bank fell significantly below the industry threshold with a ratio of -5%, compared to the required 10%. FBN Nigeria, Access, and GT Bank, however, had the highest Capital Adequacy Ratios in the banking industry, with ratios of 57%, 37%, and 36%, respectively.

Notably, the 2022 Financial Statements for NIB and UMB are yet to be released.

Earlier reports by Joy Business had indicated that Ghanaian banks collectively incurred losses of about GH¢15 billion in 2022 due to the impact of the .

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