Consolidated Bank  Ghana posts profit in Q1— Halfs non-performing loan ratio
• Daniel Wilson Addo — Managing Director, CBG

Consolidated Bank Ghana posts profit in Q1— Halfs non-performing loan ratio

Consolidated Bank Ghana (CBG) posted a profit of GH¢48.1 million at the end of the first quarter of the year.


This is more than three times the figure the bank recorded in the same period last year when profit stood at GH¢10.5 million.

According to the summary of the bank’s financial statement published in the dailies yesterday, operating income also shot up to GHS328.4 million in the period under review as against the same period last year when the figure stood at GH¢197.1 million.

Impairment gains or financial assets dropped from GH¢71.7 million to GH¢50.0 million while loans and advances to customers also dipped drastically from GH¢789.1 million in the first quarter of the year to just GH¢79.4 million during the same period last year.

While the bank’s total assets stood at GH¢11.1 billion in March 2023, the figure went up to GH¢15 billion in the first quarter of the year. On the other hand, total liabilities also shot up from GH¢11.8 billion to GH¢13.7 billion in the period under review.

Risk management

The bank, in its report, admitted that its activities expose the business to risks.

“These risks are managed in a targeted manner. The core functions of the bank’s risk management are to identify all key risks for the bank, measure these risks, manage the risk positions and determine capital allocations,” it said.

The bank said risks arising from financial instruments to which the bank is exposed include credit risk; liquidity risk; market risk and operational risk.

It said the bank regularly reviewed its risk management policies and systems to reflect changes in markets, products and best market practices, adding: “The bank aims to achieve an appropriate balance between risk and return and minimise potential adverse effects on the bank’s financial performance.

Meanwhile, the bank was able to half its non-performing loan ratio from 26.73 per cent in March 2023 to 13.44 per cent in the period under review.


CBG recently received a GH¢2.5 billion capital injection from its sole shareholder, the government, as part of measures to position it for growth and restore balance sheet resilience.

By this, the bank, formed some five years ago through the amalgamation of seven defunct banks during the country’s financial sector crisis, becomes one of the first among the commercial banks in the country to access funds from the Ghana Financial Sector Fund (GFSF), created to support banks whose balance sheet was impaired as a result of the implementation of the Domestic Debt Exchange Programme (DDEP).

The support, therefore, makes CBG, which has grown to become one of the major financial institutions in the country, more solvent and liquid to discharge its core mandate of financial intermediation without any challenges.

According to the Managing Director of the bank, Daniel Wilson Addo, “The bank is ideally positioned to continue its growth trajectory and, most importantly, to continue to make a positive impact on the economy.”

Areas of focus

Through the support, he said, Ghana’s agricultural and small-scale enterprise (SME) sectors are expected to witness a major transformation this year because the bank intends to rump up its financial support for the two sectors.

Meant to unlock the potential of two of the most important sectors of the economy, in line with the government’s overall ambitions for the year, the move by CBG, Mr Addo said, is also expected to boost food production to contain inflation, ensure food security and expand exports, as well as create jobs for the mass of the people while providing a source of financial livelihood for small businesses in dire need of capital.

Shedding some more light on the SME sector, he said CBG had played a pivotal role in providing as much as GH¢1.6 billion in loans to cover 5,600 businesses, introduced innovative programmes such as the ‘CBG SME loan Adesua’ series and optimised loan processing for swift access.

“The initiatives in the SME sector have earned the bank various awards including the Euromoney Award for SME Market leadership in 2022 and 2023,” he added.

He said in the corporate and institutional banking segment, CGB has participated in loans totalling GH¢2.35 billion, either as a lead arranger or transaction adviser, benefitting crucial sectors such as energy, tourism and education.

“In the immediate future, CBG would deepen investment in digitisation, upscale support to SMEs, further prioritise customer service and ensure greater operational efficiency,” Mr Addo said.

The overriding ambition is to build market leadership in SME financing while building a resilient institution.b

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