Absa Bank Ghana has announced an impressive 2021 financial performance having posted profit before tax of GH¢ 1.1 billion.
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.
The results, it said, “Demonstrate a concerted effort by Absa Bank to grow and maintain an efficient and resilient organisation, support its customers and clients while investing in relevant parts of the business to ensure sustainable growth.
“The difficulties created by the COVID-19 pandemic abated in 2021 following improved levels of economic activity across key sectors.”
It further added that “Absa Bank’s active participation in the improvement of the Ghanaian economy through its transactional banking segments supported this performance.”
Recovery from COVID-19
The Managing Director (MD) of Absa Bank Ghana, Mr Abena Osei-Poku, said: “The results reflect a return to medium-term growth driven by the recovery of the Ghanaian economy in 2021 from a challenging position in 2020 due to the COVID-19 pandemic.
“I am excited by what we have achieved as a business in supporting the key growth sectors of the Ghanaian economy, empowering individuals, and businesses to bring their possibilities to life.
She expressed gratitude to the board, management team and colleagues, who were always willing to go above and beyond to ensure success for the business.
“We remain focused on adopting dynamic and modern digital and data-driven solutions to make the lives of our customers and clients easy and convenient. We shall also continue investing in our communities and promoting the sustainability of the environment in which we operate,” she said.