CBG’S NET INTEREST INCOME UP 83% BY SECOND QUARTER
The Consolidated Bank of Ghana (CBG) has made a Net Interest Income increase of about 83% that is from about ¢122 million at the end of 2018 to ¢223.8 million in the second quarter of 2019.
An impressive leap from a negative position to post profit, in a generally challenging banking environment in less than a year.
CBG was formed by government in August last year after the collapse of five struggling banks – Sovereign Bank, Royal Bank, The Beige Bank, Construction Bank and Unibank- in the country. Heritage Bank and Premium Bank were added in January 2019.
These banks had liquidity challenges and the Bank of Ghana revoked their licenses leading to the establishment of CBG to salvage depositors’ funds and to manage the aftermath of the banking sector clean-up.
The Bank’s 2019 second quarter results shows a profit after tax of ¢41.1 million, representing about 280 percent improvement on performance over the 2018 financial results.
Total assets of the bank went up from ¢7.5 billion to ¢8.3 billion, representing a growth of 11%.
Due to a dip in customer confidence in the sector and the subsequent withdrawal of funds, CBG fought hard but ended 2018 with a loss of ¢22.8 million.
CBG over time won the trust of many customers who kept their funds after the initial threat to move deposits, while others returned funds that were initially withdrawn.
The Bank says as of June 2019, CBG has succeeded in turning around its fortunes and moved into profitability.
Having stabilized the finances within such a short period, the bank has turned its attention to growth through a number of marketing activation programmes nationwide.
Staff of the Bank recently embarked on the “We Stand with You” campaign on major streets across the country to signify their commitment to serve clients.
The Managing Director of CBG, Daniel Wilson Addo, said they are poised to be the preferred bank in Ghana.
According to him, the quick turnaround of the fortunes of the Bank is a testimony of the strong desire to excel and a solid workforce.