First Atlantic Bank PLC recorded a 12.5% increase in consolidated profit for the period ended June 30, 2026, supported by stronger interest earnings, higher fee income and a sharp reduction in impairment charges.

The bank’s unaudited financial statements show that consolidated profit increased to GH¢158.02 million, compared with GH¢140.52 million in the corresponding period of 2025.

Profit before tax also rose by 12.3% from GH¢216.44 million to GH¢243.04 million, while operating profit increased to GH¢242.66 million from GH¢216.44 million.

Net interest income grows strongly

First Atlantic Bank generated interest income of GH¢513.02 million, representing an 8.5% increase from the GH¢472.76 million reported a year earlier.

Interest expenses, however, declined by 23.3% to GH¢174.04 million from GH¢226.95 million.

The combination of higher interest income and lower funding costs pushed net interest income up by 37.9% to GH¢338.97 million, compared with GH¢245.80 million in June 2025.

Fee and commission income nearly doubled, rising by 83% from GH¢137.15 million to GH¢250.94 million. After accounting for fee and commission expenses, net fee and commission income increased by 78.5% to GH¢127.76 million.

Net trading income declined by 22.2% to GH¢66.50 million from GH¢85.50 million.

Overall operating income increased by 31.9% to GH¢534.82 million, up from GH¢405.35 million in the previous year.

Impairment charges decline

One of the major contributors to the bank’s profit growth was the decline in impairment charges.

Net impairment charges fell by 78.6% from GH¢52.04 million in June 2025 to GH¢11.15 million in June 2026.

Personnel expenses rose slightly by 1.4% to GH¢94.74 million, while depreciation and amortisation increased to GH¢34.08 million from GH¢25.68 million.

Other operating expenses climbed by 43.7% to GH¢171.40 million from GH¢119.24 million.

After income tax and sector-related levies, profit attributable to shareholders of the parent company stood at GH¢157.74 million. The group’s non-controlling interest accounted for GH¢281,000.

Total assets approach GH¢20 billion

First Atlantic Bank’s consolidated total assets increased by 38.3% to GH¢19.57 billion at the end of June 2026, compared with GH¢14.16 billion a year earlier.

Cash and balances with banks more than doubled to GH¢8.00 billion from GH¢3.98 billion.

Loans and advances to customers increased by 73.9% to GH¢2.46 billion, up from GH¢1.41 billion. Investment securities also rose by 12.3% to GH¢3.61 billion.

Customer deposits increased by 36.5% from GH¢12.44 billion to GH¢16.98 billion, remaining the bank’s largest source of funding.

Total liabilities grew to GH¢17.31 billion from GH¢12.49 billion, while total shareholders’ funds increased by 36.4% to GH¢2.27 billion.

The bank paid GH¢100 million in dividends during the period, compared with GH¢75 million in the corresponding period of 2025.

Asset quality improves

First Atlantic Bank also reported a significant improvement in its asset-quality indicators.

The non-performing loan ratio, including loans that had been fully provided for, declined from 26.20% in June 2025 to 14.28% in June 2026.

When loans classified in the loss category were excluded, the non-performing loan ratio fell from 4.00% to just 0.10%.

The group’s capital adequacy ratio improved to 18.24% from 16.12%, while its leverage ratio edged up to 7.38% from 7.35%.

Its liquidity ratio declined from 138.51% to 130.80%, but remained above 100%.

The bank reported no defaults in statutory liquidity or other prudential requirements during the 2026 period. In comparison, it recorded one prudential default and a GH¢2 million regulatory sanction in 2025.

Cash flow remains under pressure

Despite the growth in profit and assets, the group recorded a net operating cash outflow of GH¢8.30 million, an improvement from the GH¢486.88 million outflow reported in June 2025.

Net cash used in investing activities stood at GH¢38.08 million, while financing activities recorded an outflow of GH¢107.23 million, mainly due to the GH¢100 million dividend payment and lease obligations.

Cash and cash equivalents declined by GH¢153.60 million during the period but closed at GH¢8.00 billion, significantly higher than the GH¢3.98 billion recorded at the end of June 2025.

First Atlantic Bank’s latest results show strong growth in its core banking income, deposits and loan book. The fall in impairment charges and non-performing loans also suggests that the bank’s asset quality improved during the period, although rising operating expenses remain an area investors may continue to watch.