Absa Bank outshines industry with outstanding Q1 2025 results

Absa Bank Ghana has commenced 2025 with a remarkable first-quarter performance, underscoring its leadership in Ghana’s banking sector.

The bank’s robust financial results, coupled with strategic initiatives, have solidified its position as a frontrunner in the industry.

The bank reported a Profit-Before-Tax (PBT) of GH¢686 million for Q1 2025 significantly outperforming its competitors and securing the top position in the industry. This impressive figure is a testament to the bank’s strategic financial management and disciplined execution.

In response to the Domestic Debt Exchange Program (DDEP) and the recent sharp decline in Treasury bill rates, Absa Bank Ghana has demonstrated its commitment to supporting the real economy. The bank boasts the highest loan to deposit ratio among Tier 1 banks, which reflects its proactive approach in optimizing risk asset mix between loans and investment in government securities.

Absa Bank Ghana has focused on empowering small and medium-sized enterprises (SMEs) and fostering community development. Through a partnership with the Mastercard Foundation, the bank provided over 7,000 SMEs with loans at a competitive 10percent interest rate, facilitating the creation of nearly 50,000 jobs.

In addition, the bank’s collaboration with MTN on the Ahomka Loan initiative has disbursed more than GH¢7 billion in microloans via digital wallets over the past five years, enhancing financial inclusion across the country.

A notable achievement for the bank was replacing its first-quarter net impairment charge with a net positive credit. This was a result of diligent work with clients, leading to a reassessment of credit loss provisions and the release of excess reserves.

The bank’s non-pledged trading assets grew significantly over the year, reflecting increased activity in the trading business in line with the economy, indicating that the bank’s position as a net taker from the interbank market was part of its robust treasury and liquidity management strategy.

Absa Bank Ghana reported strong year-on-year deposit growth, driven by market-leading account solutions and excellent customer experience. The bank’s borrowings were part of a normal funding mix, offering clients good returns and diversifying funding sources. The bank achieved a lower Non-Performing Loan (NPL) ratio despite the growth in its loan book, thanks to robust origination controls. Absa Bank Ghana also boasted the second highest Capital Adequacy Ratio (CAR) within tier one banks.

Beyond financial services, Absa Bank Ghana has invested in community initiatives, including financial literacy programs that reached over 100,000 students in 2024, and vocational training for women through partnerships with organizations like CAMFED.

These strategic efforts have not gone unnoticed. According to the Ghana Banking Sentiment Index, Absa Bank Ghana ranks among the top in customer sentiment, reflecting its dedication to customer-centric services. Absa’s commitment to innovation is also evident in its enhanced mobile banking app and the expansion of its Agency Banking network, aiming to make banking services more accessible.

The bank has also introduced premium Infinite and Signature Credit Cards, offering clients benefits such as global shopping discounts and travel insurance. As the bank continues to implement its ‘Your Story Matters’ ethos, Absa Bank Ghana’s Q1 2025 performance sets a strong precedent for sustained growth and industry leadership throughout the year.

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