Absa Bank Ghana has kicked off 2025 with an impressive first-quarter performance, reinforcing its position as a leader in Ghana’s banking industry.
The bank’s strong financial performance, along with its strategic moves, has cemented its role as a leader in the sector.
The bank announced a Profit-Before-Tax (PBT) of GH¢686 million for Q1 2025, markedly surpassing its rivals and claiming the leading spot in the sector. This remarkable achievement underscores the institution’s adept fiscal strategies and rigorous implementation methods.
Following the Domestic Debt Exchange Program (DDEP) and the recent significant drop in Treasury bill rates, Absa Bank Ghana has shown its dedication to bolstering the real economy. As one of the leading institutions, the bank maintains the highest loan-to-deposit ratio amongst Tier 1 banks, indicative of its active strategy in balancing risk assets between lending and investing in government securities.
Absa Bank Ghana has concentrated efforts on supporting small and medium-sized enterprises (SMEs) as well as promoting community growth. In collaboration with the Mastercard Foundation, the bank offered more than 7,000 SMEs loans at an attractive 10 percent interest rate, which helped create approximately 50,000 new jobs.
Furthermore, the partnership between the bank and MTN for the Ahomka Loan project has provided over GH₵7 billion in microloans through digital wallets during the last half-decade, thereby boosting financial inclusivity throughout the nation.
One significant accomplishment for the bank was transforming its initial quarter net impairment charge into a net positive credit. This turnaround was due to thorough efforts with customers, resulting in a recalculation of expected credit losses and the freeing up of surplus reserves.
The bank’s non-pledged trading assets expanded considerably throughout the year, mirroring heightened engagement in trade activities consistent with economic trends. This growth underscores that the bank’s role as a net borrower from the interbank market was an integral component of its strong treasury and liquidity management approach.
Absa Bank Ghana experienced significant year-over-year growth in deposits, fueled by innovative account offerings and superior customer service. Borrowings formed an integral component of their balanced funding strategy, providing customers with attractive yields and broadening financing options. Despite expanding its lending portfolio, the bank maintained a reduced NPL ratio due to stringent credit assessment practices. Additionally, Absa Bank Ghana claimed the position of having the second-highest CAR among leading banks.
In addition to offering financial services, Absa Bank Ghana has dedicated resources to community projects such as financial education programs that benefited more than 100,000 students in 2024. They have also provided vocational training for women via collaborations with groups like CAMFED.
These strategic initiatives have not escaped notice. The Ghana Banking Sentiment Index indicates that Absa Bank Ghana leads in customer sentiment, showcasing its focus on customer-oriented services. Absa’s pledge to innovation can be seen through improvements in their mobile banking application as well as the growth of their Agency Banking system, with an aim to broaden access to financial services.
The bank has launched premium Infinite and Signature Credit Cards, providing customers with advantages like worldwide shopping rebates and travel coverage. With the ongoing implementation of their ‘Your Story Matters’ philosophy, Absa Bank Ghana’s first-quarter 2025 performance establishes a solid foundation for consistent expansion and sector dominance through the remainder of the year.
Provided by SyndiGate Media Inc.
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