First Capital Plus leads 4th quartile banks

First Capital Plus Bank (FCPB) has, within a year of starting operations as a universal bank, been adjudged the leading fourth quartile bank in the country by the recent PwC Ghana Banking Survey 2014.

The survey found that FCPB leads its peers in share of industry deposits among fourth quartile banks despite being a new entrant. The bank’s previous status as a savings and loans company, the report noted, positioned it to mobilise deposits from a largely unbanked market segment.


FCPB also posted a favourable return comparable with its peers in the fourth quarter banks during the 2013 financial year.


The survey, for a reasonable comparison and analysis of the industry, grouped participating banks into quartiles based on the book amounts of their total operating assets.


All participating banks were grouped based on the book amounts of their operating assets held as at 31 December 2013.


The survey indicated that FCPB controls 1.2 percent of the industry’s operating assets. It’s now ranked 20th in the league of 27 banks captured in the report.


Mr. Kofi Mensah, CEO of First Capital Plus Bank, in an interview with the B&FT said the bank’s key strength lies in its ability to navigate perceived challenges prevalent in the informal sector through a deep-seated commitment toward understanding the nature of the industry, building deeper inter-personal bonds with clients, and developing sector-specific internal strategies.

There are currently about 28 universal banks in the country, comprising 15 foreign-owned banks, 10 private domestic banks, and 3 government-controlled banks


The study identified 2013 as one of the toughest years in the country’s banking industry over the past decade. It found that despite growth in the industry’s total assets by 33 percent in 2013 compared to the five-year historic (2008-2012) average growth rate of only 26 percent, there was a slowdown in deposit mobilisation by the industry in 2013.


According to the survey, bank executives who participated are optimistic that the industry is on the brink of a significant transformation period. They identified four key factors that will drive the biggest transformation in the country’s banking industry over the coming five years.


These are competition, legislation and regulations, technology, and performance of the domestic economy.


Competition in the banking sector over the next five years, according to the survey, is expected to be driven by existing and potential new entrant foreign banks, including regional banks.