Top Performing Local Bank Equities In Q1-2018

On the Ghana Stock Exchange

As Q2-2018 draws to a close, we review the financial performance of listed banks on the local bourse based on their Q1-2018 financials. SCB topped the charts in terms of profitability with a return on equity (ROE) of 8.04% in Q1-2018, followed by EGH and ACCESS with an ROE of 6.21% and 5.10% respectively.

ADB’s return on equity of 2.47% was the lowest in Q1-2018. In terms of cost efficiency, SCB led the list with the lowest cost-to-income ratio of 32%, followed by CAL and ACCESS reporting a cost-to-income ratio of 46% and 50% respectively. ADB reported the highest cost-to-income ratio in Q1-2018 of approximately 79%.

GCB topped the charts in terms of asset quality reporting the lowest non-performing loan ratio (NPLR) of 8% in Q1-2018 with CAL and SOGEGH reporting NPLRs of 10.30% and 13.20% respectively. SCB stood at the bottom of the list in terms of asset quality recording highest non-performing loan ratio of 46.25%.

In Q1-2018, SCB reported the highest capital adequacy ratio (CAR) of 46.25%, followed by CAL and RBGH both reporting capital adequacy ratios of 21.80%. EGH reported the lowest capital adequacy ratio of 12.62% in Q1-2018 . In terms of share price performance, SOGEGH topped the list of gainers among bank equities recording a YTD return of 53.66%  with RBGH and ACCESS posting the lowest YTD return of -5.04% and -1.23% as at the end of yesterday’s trade.

It is expected that most bank equities will maintain a positive YTD return in the coming months anchored on their fundamentals.

The Composite index and the Financial Stocks index gained 1.87 points and 2.6 points to peg at a YTD return of 11.66% and 11.78% respectively. There were 3 gainers [UNIL, CAL & EGL] and 2 losers [PZC & GCB] at the end of yesterday’s trade. CAL topped the charts in terms of volumes as 4,999,500 shares worth GHS 6,399,360 changed hands.

On the Ghana Alternative Market

Trading 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 Euro and the Dollar at the end of yesterday’s trade. The local currency exchanged at a mid-rate of GHS 4.5196 to the USD, GHS 5.9160 to the GBP and GHS 5.2307 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 0.69%.MING LOCAL BANK EQUITIES IN Q1-2018.


Story: GN Research

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