Graphic Business News

Has your bank recapitalised to GH¢400m yet?

By: Suad Yakubu and Gifty Owusu Kwarteng

OUT of the 30 banks operating in the country, the GRAPHIC BUSINESS can confirm that 16 of them have successfully raised their minimum paid up capitals to GH¢400 million as of December 17.

The list of successful banks is compiled from various announcements made by the banks themselves and credible information obtained by the paper from insider sources.


This means that the 16 banks have successfully accumulated in excess of GH¢6.4 billion in stated capital. Some of the banks exceeded the minimum requirement of GH¢400 million.

The banks used various capital raising methods, majority of which were private placements – injection of fresh capitals from new shareholders.

Banks listed on the Ghana Stock Exchange (GSE) also used renounceable and/or rights issues while a handful relied on buffers in their surplus incomes to meet the Bank of Ghana (BoG) new directive on capital. The directive ends in less than a week.

Below are the banks and how they raised their capitals.

1.    Access Bank Ghana: Rights issue to raise GH¢221.18 million and add to existing capital.
2.    United Bank for Africa (UBA) Ghana Limited: Transferred funds from income surplus to stated capital account.
3.    Barclays Bank Ghana: Transferred funds from income surplus to stated capital.
4.    Consolidated Bank Ghana Limited: Capitalised with GH¢450 million upon incorporation on August 1, 2018
5.    Ecobank Ghana Limited: Transferred GH¢190 million from income surplus to stated capital.
6.    FBNBank Ghana Limited: Parent bank, First Bank of Nigeria, injected US$72.5 million into the bank to meet the GH¢400 million requirement.
7.    Fidelity Bank: Transferred GH¢20 million from income surplus to stated capital and later injected GH¢50 million in fresh capital from existing shareholders.
8.    Zenith Bank Ghana Limited: Transferred funds from income surplus to stated capital
9.    GCB Bank Limited: Transferred GH¢400 million from income surplus to stated capital, bringing its minimum paid up capital to GH¢500 million.
10.    Guaranty Trust Bank Ghana Limited: Used a rights issue to raise fresh capital
11.    Republic Bank (Ghana) Limited: Used a rights issue GH¢255 million
12.    Standard Chartered Bank: Moved GH¢302 million from income surplus to stated capital
13.    Societe General Ghana: Used a bonus share offer and rights issue to raise GH¢97 million GH¢168.9 million.
14.    CAL Bank Limited: Moved GH¢250 million from income surplus to stated capital and later transferred GH¢50 million to make up for the GH¢400 million
15.    Stanbic Bank Ghana Limited: Transferred funds from income surplus to stated capital
16.    Prudential Bank Ghana Limited: Injection of fresh funds from existing shareholders and new shareholder

Expected mergers
In spite of the low interest in consolidating their operations, a few banks have opened mergers talks to enable them to meet the capital requirement.

The Omni Bank and Sahel Sahara Bank are expected to produce a strong bank to be named Omni-BSCI Bank Ghana Limited.

Discussions between First Atlantic Bank and Energy Commercial Bank could also produce the second marriage to be named First Atlantic Energy Bank Ghana Limited.

There could be a third entrant, resulting from injury time consolidation of comparatively weaker banks.

Meanwhile, the Bank of Baroda Ghana Limited has begun processes to voluntarily liquidate its business and pack out of the country.

It followed a conviction by the parent company that its business model did not require capital in excess of GH¢400 million.

The bank’s 2017 financial statement showed that its capital adequacy ratio was 75.95 per cent, compared to the industry average of 17.9 per cent, as reported by the BoG for that year.

It is an Indian state-owned lender that currently employs 24 people in its three branches in the Greater Accra and Ashanti regions.