Interest rate cuts bite Republic Bank Ghana, nine-month profit falls a quarter

Republic Bank Ghana PLC’s nine-month profit fell by almost a quarter as falling Ghanaian interest rates squeezed the income it earns on loans and government securities, even as its balance sheet expanded and asset quality improved.

Republic Bank Ghana is 66.5 per cent owned by Republic Financial Holdings Ltd of Trinidad and Tobago, which runs banks across 16 Caribbean and West African markets.

Group profit after tax dropped 24.2 per cent to GH¢153.4 million (US$13.7 million) in the nine months to September 30, from GH¢202.4 million a year earlier, according to unaudited statements filed with the Ghana Stock Exchange on October 27. Earnings per share slid to 17.14 Ghana pesewas from 22.68.