First National Bank records impressive Q1 performance

Strong Revenue Growth

First National Bank reported a 42% increase in operating income. The total reached GH₵138.38 million year-on-year. This growth occurred across all revenue streams despite economic challenges.

Profitability Amid Cost Pressures

Operating expenses rose to GH₵107.70 million from GH₵82.99 million in Q1 2024. This increase was due to inflation and investments. Despite higher costs, the bank's profit before tax reached GH₵30.68 million, up 114% year-on-year. This indicates strong revenue growth while managing costs effectively.

Balance Sheet Strength

The bank’s total assets grew significantly to GH₵6.13 billion, up from GH₵4.38 billion in Q1 2024. Cash and cash equivalents increased by 36% to GH₵2.19 billion, making up nearly 36% of total assets. This strong liquidity position helps the bank navigate funding shocks and seize market opportunities.

Customer Deposits Surge

Total customer deposits rose by 36% to GH₵4.09 billion, compared to GH₵3.01 billion last year. This growth reflects market confidence and provides a low-cost funding base for expansion.

Capital Position Remains Strong

As of March 2025, First National Bank’s Capital Adequacy Ratio stood at 20.88%. This is well above the regulatory minimum and shows the effectiveness of its recapitalization strategy.

Credit Risk Update

The non-performing loan (NPL) ratio increased to 13.7%, up from 12.3% in Q1 2024. This highlights ongoing credit quality pressures in banking but remains better than the industry average of 22.6%.

Outlook Amid Uncertainty

Management focuses on franchise growth, capital efficiency, and cost control strategies for stability amid economic uncertainty. The Q1 results show that this approach yields steady returns.

Macroeconomic conditions remain fragile due to high inflation and fiscal measures ahead. However, expanded liquidity, consistent earnings improvement, and solid capital levels support continued growth.

The Q1 performance strengthens First National Bank’s position in Ghana's competitive banking sector as it navigates post-restructuring challenges.

Key Financial Highlights (Q1 2025)

- Net Interest Income: GH₵82.20m (up +58.6%)
- Net Fees & Commissions: GH₵22.19m (up +22.8%)
- Net Trading Income: GH₵36.67m (up +41.7%)
- Operating Income: GH₵138.38m (up +42.2%)
- Operating Expenses: GH₵107.70m (up +29.7%)
- Profit Before Tax: GH₵30.68m (up +114.7%)
- Total Assets: GH₵6.13bn (up +39.9%)
- Customer Deposits: GH₵4.09bn (up +35 .9%)
- Capital Adequacy Ratio: 20 .88% (up +1 .87pp)
- NPL Ratio: 13 .7% (up +1 .4pp)