First Atlantic Bank strengthens balance sheet as net interest income surges 67%

First Atlantic Bank PLC has reinforced its financial resilience in 2025, posting strong growth in net interest income while maintaining cost discipline and a robust capital position. The bank’s performance reflects broader stability within Ghana’s banking sector following recent reforms and improved regulatory oversight.

Board Chairman of the Bank, Amanquaye Armar disclosed at the bank’s Annual General Meeting in Accra that net interest income rose sharply by 67.1 per cent to GHS 952.7 million, driven by strategic asset allocation and improved revenue mobilisation. The increase highlights the bank’s ability to optimise its earning assets in a competitive financial environment.

“Net interest income grew by 67.1 per cent to GHS 952.7 million in 2025,” he stated at the meeting on Tuesday, April 7. This growth is seen as a key indicator of improved core banking operations and profitability.

He noted that the bank implemented deliberate cost-containment measures anchored on value-for-money principles, resulting in improved operational efficiency. Effective cost management has become a critical focus for banks aiming to sustain profitability amid fluctuating economic conditions.

“Deliberate measures were also put in place to contain operational costs by enforcing value-for-money principles. As a result, the bank recorded a cost-to-income ratio of 39.9 per cent, below the industry average of 48.8 per cent,” Mr Armar added. This lower ratio suggests the bank is operating more efficiently than many of its peers.

The bank’s balance sheet, he said, reflected both resilience and sustained expansion, supported largely by customer confidence. Strong customer trust often translates into increased deposits and long-term business growth.

“Our balance sheet demonstrated resilience, underscoring the strength and stability of our financial position,” he said. “Total assets increased by 44.0 per cent to GHS 19.2 billion in 2025, from GHS 13.3 billion in 2024.” This significant asset growth points to expansion in lending, investments, and other financial services.

Customer deposits also recorded significant growth, rising by 43.3 per cent year-on-year to GHS 16.6 billion. “This growth was largely funded by an increase in customer deposits, which grew by 43.3 per cent year-on-year to GHS 16.6 billion in 2025,” he explained. Deposit growth is often a key measure of customer confidence and liquidity strength.

Mr Armar further emphasised the bank’s strong capital buffers, noting that it consistently exceeded regulatory requirements set by the Bank of Ghana. Maintaining adequate capital is essential for absorbing financial shocks and supporting future expansion.

“Our capital position remained strong throughout the year, consistently exceeding regulatory thresholds. The Bank's Capital Adequacy Ratio stood at 20.6 per cent, well above the prudential minimum of 13.0 per cent,” he said. This level of capitalization positions the bank favorably within the industry.

He added that the bank’s listing on the Ghana Stock Exchange has enhanced its capital base and opened up new avenues for growth. Public listing also increases transparency and provides access to a wider pool of investors.

“The Bank’s successful listing on the Ghana Stock Exchange has also strengthened our capital base and provided access to additional resources for growth and expansion,” Mr Armar noted. Analysts say such developments could enable the bank to scale its operations and invest in digital transformation initiatives.