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No dividend for 2019, BoG declares, despite GHC1.8 billion profit

The Bank of Ghana posted a profit of 1.8 billion Ghana cedis for 2019 but won’t be paying out to shareholders

The Bank of Ghana posted a profit of 1.8 billion Ghana cedis for 2019 but will not be paying out to shareholders.

This is about twice the operating loss of GHC793 million it recorded in 2018.

The recovery has been attributed largely to the strong performance the central bank posted for the year under review.

For 2019, the Bank of Ghana’s income from fees, penalties charged to commercial banks, interests and other revenue streams reached GHC5.85 billion compared to the GHC3.12 billion recorded in 2018.

Though the central bank’s expenditure items such as personnel costs, rent, repairs and renewals increased from GHC3.92 billion to GHC4 billion between 2018 and 2019, it posted more income for 2019, which contributed to the profit.

Meanwhile, the banking sector regulator’s total assets, which are those items it can lay claim to, increased by 16% within the one-year period, rising from GHC59 billion to roughly GHC69 billion.

Of this, securities such as long-term government bonds came tops with a share of GHC46.2 billion, followed by cash and balances with correspondent banks at GHC7.4 billion. Balances with the International Monetary Fund turned out the third-most lucrative asset, at GHC5.34 billion.

Total liabilities, which are items to which the central bank cannot lay claim, also increased by 13.4% to attain GHC67 billion, up from the GHC59 billion recorded in 2018.

Deposits with the central bank comprising those facilities belonging to the government of Ghana and other financial institutions contributed the highest amount: GHC19.4 billion.

These were followed by currency in circulation and liabilities to the IMF, with shares of GHC16.3 and GHC10 billion.

Despite the strong performance posted by the Bank of Ghana in 2019, the board did not approve payments of dividends for the year.

Earlier this year, the Bank of Ghana ordered banks and specialised deposit-taking institutions to suspend paying out dividends to shareholders.

Pius Amihere Eduku

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citinews
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Pius Amihere Eduku
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