Republic Bank begins implementation of new strategic plan — Makes strong profit rebound

Republic Bank Ghana has commenced the implementation of its new strategic plan with a strong commitment to its stakeholders to become a financial lighthouse focused on deepening and expanding its relationship with customers.

The bank under its plan also intends to enhance its mortgage business; and consolidate and expand its banking operations while deepening its electronic business to delight customers.

The Managing Director of the bank, Benjamin Dzoboku, said this at the bank’s Annual General Meeting (AGM) in Accra last Thursday.

“Our goal, going forward, is to illuminate the path for financial success,” he noted.

Financial Performance

The bank made a strong recovery from a loss position of GH¢61.13 million in 2022 to post a profit of GH¢145.03 million last year.

This represents a percentage increase of  337.25 per cent.

The bank’s total assets also closed the year in review with GH¢6.99 billion reflecting a significant increase of GH¢1.88 billion when compared with the 2022 figure.

The increase, which was primarily driven by a notable growth in money market placements, in addition to growth in loans and advances, was supported by remarkable growth in deposits within the year.

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It further posted a comprehensive income of GH¢145.03 million in 2023 as against the loss of GH¢22.70 million recorded in 2022. 

This increment of 739 per cent is the result of a 41.90 per cent improvement in the bank’s net interest income and a 72.64 per cent decline in impairment losses on financial assets.

Despite the dramatic financial turnaround, the bank, however, noted that it would pay dividends to shareholders in 2026 after the audit of the 2025 financial year.

Bank’s performance in 2023

Giving further details about the bank's performance, Mr Dzoboku, in his report revealed that with signs of an economic rebound on the horizon, coupled with the recent decrease in the central bank’s monetary policy rate and further anticipated cuts in the coming months, the bank would post a further increment in profit in 2024.

“Following our performance for the 2023 financial year, we shall continue in the steps of pushing our customer-centric and innovation agenda as well as instil a performance-based culture in the bank as we seek to triple our profits by 2028,” he noted

He said the operating expenses of the bank increased by 33.55 per cent to GH¢433.61 million in 2023 in the wake of sustained inflationary pressures while staff wages and salaries costs also grew by 25.4 per cent driven by the salary increment and increases in staff medical and fuel allowances. 

“Additionally, other operating expenses increased by 48.2 per cent in support of the ongoing digital transformation drive including a 65.25 per cent increase in software licensing and ICT cost,” he stated.

Loans and advances 

The bank withstood the year’s inflationary pressure that forced the BoG to hike interest rates by 30 per cent to grow its net loans and advance portfolio by 24 per cent. 

This was an increment from GH¢1.96 billion in 2022 to GH¢ 2.43 billion in 2023.

The bank’s credit cards showed the most remarkable increase of 110.50 per cent, from GH¢7.4 million in 2022 to GH¢15.6 million, reflecting the bank’s successful strategy of leveraging digital channels for growth.