Absa Bank Ghana has announced an impressive 2021 financial performance, recording an increase in revenues by 17% and a reduction in impairments by 35%. This comes on the back of a return to normal activity by the Ghanaian economy after a challenging 2020 due to the COVID-19 pandemic.
Profit before tax and return on equity grew by 55% and 6.6% respectively year on year, reflecting prudent cost and capital management.
The results, announced this week, 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.
Key highlights:
- Revenue grew by 17% to GHS1.6 billion
- Profit before tax (PBT) increased by 55% to GHS 1.1 billion
- Customer Assets was up 7% to GHS4.8 billion
- Customer Deposits were up by 22% to GHS 7.9 billion
- Return on Equity improved by 6.6% to 32.6%,
- Impairments fell by 35%,
Profits before tax (PBT) increased by 55% Year-on-Year to GHS1.1 billion with revenues jumping by 17% to GHS1.6 billion, driven by capital retention, strong liability growth and good growth in Loans & Advances. This was further supported by an active adoption of digital channels by the bank’s dynamic base of clients and customers. The emerging recovery of the Ghanaian economy in 2021, from a difficult position the previous year, was also a key factor in the improvement in revenues.
The difficulties created by the COVID-19 pandemic abated in 2021 following improved levels of economic activity across key sectors. Absa Bank’s active participation in the improvement of the Ghanaian economy through its transactional banking segments supported this performance.
Abena Osei-Poku, Managing Director of Absa Bank Ghana 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. I am grateful to the Board, Management team and colleagues, who are always willing to go above and beyond to ensure success for this 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.”
