Zenith Bank remains well capitalised and liquid despite DDEP

Zenith Bank (Ghana) Limited says it remain well capitalised, liquid and resilient to continue its support for businesses and household customers in the country.

According to the recent Summary of Financial Statement ending December 31, 2022, Zenith Bank (Ghana) Limited posted a surge in its total net non-interest income from a loss position of ¢3.8 million in 2021 to ¢331 million in the year under review.

The bank’s Capital Adequacy Ratio (CAR) also remained higher than the regulatory limit set by the Bank of Ghana and industry average in 2022. The banks’ assets quality for the period also reflected an improvement in the Non-Performing Loans (NPL) ratio for the year.

The Summary of Financial Statement attributed operating income, risk assets and deposits as primary growth areas for Zenith Bank Ghana Ltd for the period.

Due to government’s Domestic Debt Exchange Programme (DDEP) which impacted on most banks operating in the country, Zenith Bank Ghana posted a net loss of ¢555 million in 2022. This was as a result of the impairment charges relating to the debt restructuring programme.

Despite the loss encountered for the period, Zenith Bank Ghana Limited will not need an injection of additional capital which demonstrates that it is well capitalised with a total equity of ¢982 million recorded as of the end of December 2022.

In the first quarter of 2023 ending March 31, 2023, Zenith Bank Ghana Ltd. adopted and implemented growth-related strategies which resulted in a quick recovery from the loss position recorded in 2022, to the path of profitability.

The Summary of Financial Statement cited profitability, operating income, assets and deposits as key growth areas of the bank, leading it to make a profit of ¢217 million for the period.

The bank continues to be well capitalised and is positioned to support its customers.

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