Republic Bank profit up by 45%
PROFIT of Republic bank PLC increased by 45.26 per cent last year. The bank’s profit grew from GH¢145.03 million in 2023 to GH¢210.67 million in the year under review.
The growth was attributed to a 16.61 per cent improvement in net interest income and 52.18 per cent decline in impairment losses on financial assets.
The bank’s interest income increased by 26.32 per cent from GH¢952.76 million as at year end 2023 to GH¢1.2 billion in 2024.
The significant increase in the bank's interest-bearing asset contributed to an increase in the banks interest income and net interest income.
However, net interest margin declined marginally from 8.86 per cent in 2023 to 7.87 per cent in 2024, driven by expansion in average total asset base by 37.39 per cent.
In view of this, the bank was unable to declare a dividend payment for 2024.
The Managing Director of Republic Bank Ghana PLC Group, Dr Benjamin Dzoboku announced this last Wednesday at the bank’s Annual General Meeting (AGM) in Accra.
Operating expenses
He said the bank’s operating expenses increased by 17.27 per cent to GH¢508.52 million in 2024 despite subdued inflationary pressures.
He indicated that a staff cost, key component of the operating expenses, also grew by 49.67 per cent, driven by salary increment and increases in staff medical and fuel allowances.
“Additionally, other operating expenses increased by 9.99 per cent in support of the ongoing digital transformation agenda, including a 65.25 per cent increase in software licensing and ICY cost.
As such, the Group’s cost-to-income ratio increased from 57.65 per cent in 2023 to 58.71 per cent in 2024, following the marginal growth in expenses,” Dr Dzoboku stated.
He said in 2023, the bank experienced a net impairment loss of GH¢66.09 million, primarily due to participation in the Cocoa bills Domestic Debt Exchange (DDEP).
However, he stated that through effective loan recovery and robust risk management, the bank successfully reduced its overall net impairment loss on financial assets to GH¢31.6 million by year-end 2024 compared with GH¢66.09 million in 2023.
Outlook
Following the performance for the 2024 fiscal year, Mr Dzoboku said management would continue in the steps of turning the Republic Bank Ghana into a financial lighthouse through innovative execution, strategic expansion and people development, as the bank seeks to triple our profits by 2028.
“I am confident that with the commitment and dedication of management and staff, we will achieve remarkable success in 2025 and create value for all stakeholders,” he added.
Six strategic pillars
He said the bank will continue to anchor its growth strategy on six core pillars; retail and commercial banking, SME support, corporate banking, mortgage financing, digital transformation, and wealth management.
He explained that the SME sector remains a strong focus given its role in Ghana’s economy and the bank intends to deepen its mortgage dominance and an area where it has historically led the market.
“We centralised our mortgage portfolio and we are now the leading bank when it comes to mortgages. I’m not sure any bank can compete with us,” he added.
The Board Chairman of the bank, David Addo-Ashong revealed that the global economy is holding steady, although the degree of grip varies widely across countries.
Domestically, he said high-frequency indicators suggest continued improvement in economic activity.
“Growth has been robust so far, with economic indicators pointing towards stronger growth in the coming quarters. Business and consumer confidence are gradually improving. Financial sector inflation expectations remain broadly anchored, reserve build-up has been sufficient to provide confidence, and the currency is recording some gains,” he stated.
He said with the strong macroeconomic policy implementation by the new government and improved foreign exchange availability, the economy should observe a realignment of the trajectory of the exchange rate with the fundamentals.
“In 2025, Republic Bank will forge exciting partnerships with notable local and international organisations to advance financial inclusion and champion environmental, social and governance (ESC) goals, staying true to our purpose of enriching lives and building sustainable communities through our CSR/PMAD programme,” Mr Addo Ashong said.
He revealed that the bank will also host SME clinics and seminars, offering tailored support to entrepreneurs, fostering innovation and driving economic growth, as well as mortgage campaigns to make homeownership dreams a reality for our customers and prospects.