…experiencing a substantial improvement in capital position
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First National Bank Ltd has pushed its financial recuperation further into 2025, announcing a profit of GH₵30.68 million in the initial three months, which is double what they earned during the corresponding timeframe in the previous year. This achievement follows robust trade revenues, careful enlargement of their balance sheet, and an ongoing enhancement in liquid reserves.
The financial outcomes for Quarter 1 in 2025 underscore the progress achieved during the previous year when the bank reported a comprehensive annual net income of GH₵18.24 million following a deficit of GH₵2.57 million in 2023. This consistent improvement indicates that First National Bank’s strategic plans are delivering favorable outcomes.
Strong growth in revenue
The total operating income following impairment provisions showed a remarkable 42% increase from the previous year, reaching GH₵138.38 million. This growth was fueled by improvements across various revenue sources even amid the difficult economic conditions.
Strong profit margins persist even under cost constraints
Operational expenditures rose to GH₵107.70 million from GH₵82.99 million in Q1 2024 because of inflation and investment activities. Regardless of this surge, the bank managed to post a pre-tax profit of GH₵30.68 million, marking an impressive 114% YoY increase, which suggests robust revenue expansion alongside controlled spending. These outcomes highlight that First National Bank is poised for improved operational efficiency heading into Q2 2025, despite ongoing high inflation-related expense burdens.
Robust balance sheet: enhanced liquidity andcapitalization provide support
The bank’s balance sheet saw significant growth, with total assets rising to GH₵6.13 billion from GH₵4.38 billion in the first quarter of 2024.
The amount of cash and cash equivalents rose to GH₵2.19 billion, marking a 36% increase from the previous year and accounting for almost 36% of total assets. This robust liquidity stance strengthens First National Bank’s ability to respond effectively to financial disruptions and capitalize on new market prospects.
Customer deposits increased by 36% to reach GH₵4.09 billion, up significantly from GH₵3.01 billion during the corresponding period of the previous year. This rise in deposits underscores market trust and offers a cost-effective financing foundation for additional asset development.
Capital position
As of March 2025, First National Bank’s Capital Adequacy Ratio was at 20.88%, well above the required threshold. This underscores the effectiveness of their capital enhancement plan.
Credit risk
The NPL ratio increased slightly to 13.7% from 12.3% in Q1 2024, indicating ongoing challenges for credit quality within the banking sector. Nevertheless, this figure remains considerably lower than the industry average of 22.6% as of February 2025, according to data released by the Bank of Ghana.
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Outlook: steady amid uncertainty
Management’s present course seems firmly focused on three key strategies: expanding their franchise network, improving capital efficiency, and controlling costs. According to the Q1 2025 results, these efforts are yielding consistent returns.
Given the precarious state of macroeconomic conditions stemming from elevated inflation and shifting policies aimed at fiscal consolidation,
NorvanReports
This projection suggests that the bank’s capacity to sustain profitability and uphold credit standards may face challenges in future quarters. Nonetheless, its increased liquidity position, steady enhancement of profits, and robust capital ratios offer a firm basis for ongoing expansion.
The first-quarter performance will bolster First National Bank’s standing within Ghana’s bustling banking industry, providing valuable insights for fellow banks as they adapt to the economic climate following restructuring.
Key Financial Highlights (First Quarter 2025):
|
Metric |
Q1 2025 |
Q1 2024 |
YoY Change |
| Net Interest Income | GH₵82.20m | GH₵51.83m | +58.6% |
| Net Fees & Commissions | GH₵22.19m | GH₵18.07m | +22.8% |
| Net Trading Income | GH₵36.67m | GH₵25.87m | +41.7% |
| Operating Income (post impair.) | GH₵138.38m | GH₵97.30m | +42.2% |
| Operating Expenses | GH₵107.70m | GH₵82.99m | +29.7% |
| Profit Before Tax | GH₵30.68m | GH₵14.30m | +114.7% |
| Total Assets | GH₵6.13bn | GH₵4.38bn | +39.9% |
| Customer Deposits | GH₵4.09bn | GH₵3.01bn | +35.9% |
| Capital Adequacy Ratio (CAR) | 20.88% | 19.01% | +1.87pp |
| NPL Ratio | 13.7% | 12.3% | +1.4pp |
Provided by Syndigate Media Inc. (
Syndigate.info
).
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