Prior to the Bank of Ghana’s deadline of April 30, 2023, local banks have started releasing their 2022 Financial Statement.
However, their profitability situation has been significantly impacted by the Domestic Debt Exchange Programme (DDEP).
Nearly all of the banks who published their results had losses, according to the 2022 Audited Financial results sighted by the media.
One of these is Standard Chartered Bank, which posted a loss of 66.4 million in 2022 as opposed to a profit of 410.8 million in 2021, Joy News reports.
Despite earning an astounding $807.7 million in interest revenue in 2022, this is the case.
As a result of the effect of the DDEP, the tier one bank made an impairment of ¢1.18 billion in 2022.
Similarly, Republic Bank registered a loss of ¢66.8 million in 2022.
It posted a net interest income of ¢370.6 million, but a ¢237 million loss on financial assets and other costs triggered the loss.
Again, GCB Bank lost ¢568 million in 2022, despite recording net interest income of ¢2.09 billion.
FNB, Stanbic, Zenith heavily impacted by DDEP
Parent companies of First National Bank, Stanbic, Zenith and Guaranty Trust Bank have already hinted of significant losses by their Ghana subsidiaries due to the impact of the DDEP on their operations. This will therefore require additional capital injection to turn things around.
For instance, Standard Bank said it was ready to re-capitalise its Ghanaian unit after making provisions to cover more than half of its holdings in the nation’s debt.
FirstRand Limited, Africa’s biggest bank by market capitalization, also hinted of writing off more than half the value of its holdings of Ghanaian bonds as the country grapples with a restructuring of its sovereign debt.
The banks had also indicated of slowing down lending until the Ghanaian economy improves.
The loss position of the banks means shareholders may not enjoy dividend for the 2022 financial year.
Societe Generale records ¢110.6m
Meanwhile, Societe Generale Bank is one of the few banks that recorded a profit in 2022.