RBGH remained profitable in Q2-2018 reporting a profit after tax of GHS 19.31 million.
The bank was successful at growing its revenue in Q2-2018. It saw its net interest income grow by 4.34% from GHS 72.52 million in Q2-2017 to GHS 75.67 million in Q2-2018. Non-interest income on the other hand increased by 57% from GHS 23.75 million in Q2-2017 to GHS 37.27 million in Q2-2018. RBGH’s profit before tax increased by 11.72% from GHS 23.31 million in Q2-2017 to 26.05 million in Q2-2018.
In terms of cost efficiency, the bank’s cost to income ratio fell to 71% in Q2-2018 from 75% in Q2-2017. The quality of the bank’s loan portfolio improved with its non-performing loan ratio (NPLR) declining marginally from 21.84 in Q2-2017 to 21.71 in Q2-2018. Although its NPLR is below the industry average of 22.60% reported in Q2-2018 by the central bank, it is expected that the bank will take the necessary steps to improve the quality of its assets by continuously focusing its efforts on recovering past due and non-performing loans whiles enhancing its existing risk management systems. RBGH grew its loan portfolio by 14.88% with deposits from customers rising by 6.2% in Q2-2018. The bank remains well capitalized. Its capital adequacy ratio increased to 18.74% in Q2-2018 from 14.77% in Q2-2017.
RBGH’s YTD return as at the end of yesterday’s trade stood at 6.47%. Its share price is likely to stay relatively stable in the short term buoyed by its performance in Q2-2018.
The composite Index and the financial stocks index fell by 17.31 points and 11.30 points to peg at a YTD return of 13.43% and 17.88% respectively. There were 5 losers [GOIL, TBL, EGL, CAL & ETI]. EGL topped the charts in terms of volumes as 400,000 shares worth GHS 1,236,000 changed hands.
On the Ghana Alternative Market
Trading activity on the Ghana Alternative Market was hushed as no shares changed hands.
On the Currency market
The Cedi appreciated marginally against the British Pound but lost to the Dollar and the Euro at the end of yesterday’s trade. The local currency exchanged at a mid-rate of GHS 4.7196 to the USD, GHS 6.0814 to the GBP and GHS 5.5246 to the EURO. The GCFM Cedi index, a measure of the holistic performance of the Cedi on the interbank market now records a year-to-date depreciation of 5.22%.
By GN RESEARCH