An inventory report on the assets and liabilities of defunct Capital Bank has revealed that shareholders’ loans accounted for 65% of the bank’s loans and advances.

The report conducted by the Receivers, Vish Ashiagbor and Eric Nana Nipah of pwc, said shareholders’ loan amounted to ¢749 million and had been in default for over three years.

It also revealed that the defunct bank had loans and advances of approximately ¢1.2 billion, accounting for 44% of the bank’s total assets as of 14th August 2017.

“The revised asset position of Capital Bank as of 14^th August 2017 was approximately ¢1.2 billion. We continue to review the bank's records to ascertain its accurate asset position".

Also, the Receivers said “an initial assessment of Capital Bank's assets indicates impairments of approximately ¢1.4 billion.”

“The total assets of Capital Bank were approximately ¢2.6 billion as of 14^th August 2017. However, from our initial assessment and Asset Quality Review we have adjusted the value of Capital Bank’s Assets to approx. ¢1.2 billion. This value includes asset balances purchased by GCB per the Purchased and Acquisition Agreement”, the report further disclosed.

Day one cash after liquidation was ¢2.4m

The report also said the cash counted on day one after liquidation was approximately ¢2.4 million, lower than the ¢19.5 million stated in the Management Account and General Ledger.

“On day one, we performed a physical count of cash held in vaults at the bank’s head office and branch network (25 branches). This was done in conjunction with GCB and Bank of Ghana (BoG) representatives. Total cash counted was the cedi equivalent of ¢17.1m. The cash counted was approximately ¢2.4 million, lower than the ¢19.5 million stated in the Management Account and General Ledger.”

Afterwards, it said GCB assumed all the cash in Capital Bank in line with the Purchase and Assumption arrangement, adding “the cash was handed over on 14^thAugust 2017 following a sign off of count sheets by GCB and BoG representatives”.

Total foreign accounts valued at ¢10.7m

Again, the Receivers report revealed that a review of documents available at Capital Bank and the nostro account statements indicated that the total balance of Capital Bank’s accounts with correspondent banks was approximately ¢10.7 million.

This was due to a deposit of almost ¢210.1 million with BHF Bank, Frankfurt that was wrongly duplicated.

However, per the management records of the bank as at revocation date, Capital Bank maintained 30 foreign currency accounts (Nostro Accounts) with various correspondent Banks. The cedi equivalent of balances in these accounts was approximately ¢220.8m as of 14^th August 2017.

Long term investments estimated at ¢303,000

For investments, the Receiver identified that Capital Bank’s long term Investments which related to two equity investments amounted to ¢303,000.

These comprised of a 100% investment in Capital Bank Investment Services Limited valued at approximately ¢300,000 and Capital Bank’s shares in Ecobank Transnational Incorporation valued at ¢2,500 as of 14th August 2017.

“These values are at cost and the current values are likely to be much higher than what is reflected in the Bank’s books. We will ascertain the current values of the shares and realise them appropriately”, the report explained.

The Receivers said the document has been prepared for Bank of Ghana in accordance with the Joint Receivers’ reporting responsibility to Bank of Ghana under Sections 130(1), 130(4) and 126(3) of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930), requiring the Receiver to prepare and deliver a report on the inventory of assets and liabilities of the resolved institution.