CBG posts GH¢41.1m profit in less than a year in operation

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Consolidated Bank of Ghana (CBG) says it has moved from a negative position to post profit, in a generally challenging banking environment in less than a year as a result of prudent management practices. The Bank’s 2019 second quarter results show a profit after tax of ¢41.1 million, representing about 280 percent improvement on performance over the 2018 financial results. The second quarter performance also indicates that Net Interest Income was up by about 83% from about ¢122 million at the end of 2018 to ¢223.8 million in the second quarter of 2019. Total assets of the bank went up from ¢7.5 billion to ¢8.3 billion, representing a growth of 11%. 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. 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who kept their funds after the initial threat to move deposits, while others returned funds that were initially withdrawn.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 stabilised 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 testimony of the strong desire to excel and a solid workforce. Mr Wilson Addo commended the customers for believing and staying with the bank, promising they will stand with them and grow with them. He commended the staff of the Bank for working hard to ensure that the Bank became profitable in record time.

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Consolidated Bank Ghana (CBG)