Bank of Ghana registers ¢1.57bn profit in 2020

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The Bank of Ghana’s 2020 Annual Report has revealed that the institution has registered a profit of ¢1.57 billion last year.

This is compared to the ¢1.80 billion recorded in 2019.

The directors of the Central Bank however did not recommend dividend to be paid to the shareholder (government). In 2019, it also did not pay dividend.

The report said “the directors have assessed the ability of the Central Bank to continue as a going concern. The directors, therefore, have a reasonable expectation that the Bank has adequate resources to continue in operational existence for the foreseeable future. Thus, the going concern basis has been adopted in preparing the annual financial statements of the Bank and the Group.”

An amount of ¢403.37 million (2019: ¢1.24 billion) has however been set aside as approved appropriations from reserves for contingencies, emergency interventions, general purpose loans, and others.

The report said despite the Covid-19 pandemic, the Central Bank has ensured that all key/critical functions and activities continue to operate, with none having been disrupted to date.

“Ghana has a strong and resilient banking system with adequate levels of capital and significant liquidity buffers to effectively manage the risks they face from the pandemic. The Basel framework, around which the Bank’s regulations are structured, provides for built-in capital and liquidity buffers for banks to draw on during times of financial stress”, the report pointed out.

“However, the Covid-19 pandemic created observed liquidity strains in various funding markets, which necessitated a review of the money market liquidity management strategy. Therefore, in addition to the measures taken by the Government of Ghana to contain the impact of the Covid-19 pandemic, the Central Bank has deployed monetary and financial stability policy tools to further mitigate the Covid-19 pandemic’s impact on the Ghanaian economy”, it stressed.

In 2020, the Bank of Ghana donated an amount of ¢10 million to the National Covid-19 Trust Fund to support the national’s effort towards the fight against the Covid-19 pandemic.

It also donated ¢10 million to the Private Sector Covid-19 Fund for the completion of a new Infectious Diseases Treatment Centre at Ga East, Accra to help in the management of critical Covid-19 cases.

It concluded, saying, the Central Bank will continue to follow the policies and advice of various national institutions and, at the same time, continue its operations in the best and safest way possible without jeopardizing the health of its employees.

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