First National Bank Ltd has extended its financial recovery into 2025, reporting a profit of GH₵30.68 million in the first quarter, doubling its earnings for the same period last year. The performance comes on the back of strong trading income, prudent balance sheet expansion, and a continued boost in liquidity buffers.
The Q1 2025 results reinforce the gains made in the prior year when the bank posted a full-year net profit of GH₵18.24 million after emerging from a GH₵2.57 million loss in 2023. This upward trajectory suggests that First National Bank’s strategic initiatives are yielding positive results.
Strong growth in revenue
Total operating income after impairment provisions recorded an impressive 42% year-on-year growth to GH₵138.38 million, driven by growth across all revenue streams despite the challenging macro environment.
Resilient profitability despite cost pressures.
Operating expenses increased to GH₵107.70 million, up from GH₵82.99 million in Q1 2024 due to inflation and investments. Despite the rise, the bank achieved a profit before tax of GH₵30.68 million, a 114% increase year-on-year implying stronger growth in revenue whilst keeping costs in check. The results indicate that First National Bank is entering Q2 2025 with stronger operating leverage, even as inflationary cost pressures remain elevated.
Balance sheet strength: liquidity and capitalisation boosts
The bank’s balance sheet expanded considerably, with total assets increasing to GH₵6.13 billion, up from GH₵4.38 billion in Q1 2024.
Cash and cash equivalents surged to GH₵2.19 billion, up 36% year-on-year and now representing nearly 36% of total assets. The strong liquidity position enhances First National Bank’s agility in navigating funding shocks and seizing market opportunities.
Total customer deposits rose by 36% to GH₵4.09 billion, a significant jump from GH₵3.01 billion for the same period last year. The deposit growth affirms market confidence and provides a low-cost funding base for further asset expansion.
Capital position
First National Bank’s Capital Adequacy Ratio stood at 20.88% as of March 2025, comfortably above the regulatory minimum. This is a testament to the bank’s recapitalisation strategy.
Credit risk
The NPL ratio ticked up to 13.7%, compared to 12.3% in Q1 2024, highlighting the continued pressure on credit quality in the banking industry. However, it is noteworthy that the 13.7% is significantly better than the industry average of 22.6% as of February 2025, as reported by Bank of Ghana.
Outlook: steady amid uncertainty
Management's current trajectory appears anchored in three strategic areas: franchise growth, capital efficiency and cost control. The Q1 2025 results indicate that this approach is delivering steady returns.
With macroeconomic conditions still fragile due to high inflation and evolving fiscal consolidation measures, NorvanReports can project that the bank’s ability to maintain profitability and credit discipline will be tested in subsequent quarters. However, its expanded liquidity base, consistent earnings improvement, and solid capital levels provide a strong foundation for continued growth.
The Q1 performance will strengthen First National Bank’s positioning in Ghana’s competitive banking sector, with its recovery path offering important lessons for peers navigating the post-restructuring economic landscape.
Key Financial Highlights (Q1 2025):
Metric
Q1 2025
Q1 2024
YoY Change
Net Interest Income
GH₵82.20m
GH₵51.83m
+58.6%
Net Fees & Commissions
GH₵22.19m
GH₵18.07m
+22.8%
Net Trading Income
GH₵36.67m
GH₵25.87m
+41.7%
Operating Income (post impair.)
GH₵138.38m
GH₵97.30m
+42.2%
Operating Expenses
GH₵107.70m
GH₵82.99m
+29.7%
Profit Before Tax
GH₵30.68m
GH₵14.30m
+114.7%
Total Assets
GH₵6.13bn
GH₵4.38bn
+39.9%
Customer Deposits
GH₵4.09bn
GH₵3.01bn
+35.9%
Capital Adequacy Ratio (CAR)
20.88%
19.01%
+1.87pp
NPL Ratio
13.7%
12.3%
+1.4pp
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