Barclays Bank posts ¢550 million in profits for 2017

Barclays Bank recorded ¢550 million in profits before tax for 2017, the Bank’s Audited financial statements ending December 2017 has shown.

The bank recorded a pre-tax profit increase of 30 percent to post an all-time industry high of ¢550 million, in the year in which it marked the centenary anniversary of its existence in the country.

The total bank revenues also increased by 24 percent year-on-year, giving a 42 percent return on average equity.

The results show a strong performance on all the bank’s income lines as it delivered impressive growth in net-interest and fee-based income, Barclays added in a statement copied to JOYBUSINESS.

Operating costs increased by 12.7 percent year-on-year, being significantly below inflation and reflecting a commitment to pursue efficient banking operations with profitability in view.

As a result, cost to income ratio improved from 39.7 percent in 2016 to 36 percent one of the lowest in the industry.

In terms of balance sheet performance, the bank’s gross customer loan book grew by 18 percent to ¢2.27 billion, while deposits increased by 11 percent to ¢3.2 billion.

Total assets stood at ¢5.95 billion at end of the year 2017, representing a growth of 13 percent over prior year. In addition, total equity soared by 33 percent to GHS 1.05 billion.

The bank also demonstrated its strong liquidity position with a capital adequacy ratio of 20.45% well above the regulatory threshold of 10 percent.

“We made impressive progress because we remained focused on our vision to be the leading bank in Ghana,” said Mrs Patience Akyianu, Managing Director of Barclays Bank Ghana.

“Our performance reflects our financial strength and commitment to stay close to our customers, understand their needs and tailor services to help them achieve their financial objectives.”

Antoinette Kwofie, Finance Director of Barclays Bank Ghana noted that in the midst of a challenging economic environment for the banking sector, the bank recorded phenomenal performance in aggregate indices across all segments delivering profitability and returns to shareholders.

“Additionally, we have maintained a strong balance sheet whilst driving operational efficiencies and a strong risk management culture. We also remain well capitalised and ready to meet the revised regulatory capital requirements without an external injection,” she said.

Key points:

– Profit before tax profit increase of 30% to post an all-time industry high of ¢550 million

– Revenues increased by 24 percent year-on-year

– Cost to income ratio improved from 39.7 percent in 2016 to 36 percent.

– Total assets stood at ¢5.95 billion at end of the year 2017, a growth of 13 percent.

– Capital adequacy ratio of 20.45 percent well above the regulatory threshold of 10 percent.

– Total equity increased by 33 percent to ¢1.05 billion

– Income tax expense of ¢164 million

Source: Myjoyonline