Republic Bank is on course to see its total assets race past the GH¢7billion mark for the first time, its Managing Director Benjamin Dzoboku has said.
If attained, it will represent a minimum of 37.3 percent and 12.5 percent increase over the GH¢5.1billion and GH¢6.22billion recorded at end-December 2022 and June 30, 2023 respectively.
“There are a lot of areas that you have to operate in as a financial institution, but you must identify your core competence. Thus the bank started as a mortgage company, and what we have done is only a return to our roots,” Mr. Dzoboku added during an interaction with the B&FT.
The bank’s mortgage portfolio grew from circa GH¢324million to GH¢402million at the close of 2022. Already, it has accelerated to GH¢456million thus far, with anticipation of an end-2023 value of GH¢500million.
Win-win
Over the past year, the financial services provider has experienced a 12.02 percent rise in its net loans and advances portfolio, going from GH¢1.75billion in 2021 to GH¢1.96billion in 2022. While progress was observed across all categories in the loan portfolio, it was mortgage loans that exhibited the most substantial annual growth – reaching 32.57 percent.
The advancements made throughout the year to reorganise its mortgage business were singled out as playing a pivotal role in driving improvements in the mortgage loan portfolio.
“We have three mortgage hubs, and we see it as delivering a win-win by driving a sustainable business but also giving back to the community which we serve. This is evident in our mortgage rate being the lowest in the country,” the bank’s MD stated buoyantly, pointing out the mortgage rate that is currently lower than the ‘risk-free’ 91-day Treasury bill rate.
“On the back of our new pension-backed mortgage product, the introduction of new products and services… we believe that as we increase the volume of customers that we serve, the profit will eventually grow,” he added.
Real economy
Additionally, the bank is poised to extend credit to the real sector with a focus on SMEs in the retail segment. The corporate segment, Mr. Dzoboku said, will see an emphasis on education, energy – brown and green – as well as agribusiness.
“We have shown in the past that we are a bank that is truly in the business of banking. We have a history dating back 186 years and, with that, valuable experience across time and place. We will continue to improve on this strategy,” he said.
The bank’s helmsman further stated that its four credit cards have seen remarkable uptake with more than 400 new cards issued in July 2023 alone.
In the period under review, Republic Bank saw its liabilities rise to GH¢5.48billion from GH¢3.6billion during the comparable period of 2022. This was driven by a 52.5 percent appreciation in customer deposits. Mr. Dzoboku attributed this to customer confidence in the bank’s performance and abilities during a period of broad uncertainty.
“We are a liability-driven institution. As we grow our liabilities, through deposits we are able to extend more facilities to individuals and businesses. Through partnerships and opportunities in key sectors of the economy, we anticipate further growth in loans and advances going forward,” he added as outstanding loans and advances hit GH¢2.2billion at the end of first-half 2023.
