Audited Condensed Financial Statements

31 December 2020
Condensed Statement of Comprehensive Income Condensed Statement of Financial Position
for the year ended 31 December 2020 as at 31 December 2020
(all amounts are expressed in thousands of Ghana Cedis) (all amounts are expressed in thousands of Ghana Cedis)
2020 2019 2020 2019
GHS’000 GHS’000 GHS’000 GHS’000
Assets
Interest income calculated using the effective interest method 1,340,468 1,120,210 Cash and cash equivalents 1,510,299 1,532,655
Interest expense (375,330) (337,191) Non pledged trading assets 2,192,367 2,866,365
Net interest income 965,138 783,019 Derivative assets 39,283 54,425
Fees and commission income 175,526 161,740 Loans and advances to banks 244,620 209,501
Fees and commission expense (25,030) (10,864) Loans and advances to customers 4,481,173 4,082,295
Net fees and commission income 150,496 150,876
Investment securities 3,318,260 2,550,401
Other assets 539,790 319,669
Net trading income 283,543 229,938
Property and equipment 161,460 105,174
Other income 178 245
Intangible assets 1,481 771
Net trading and other income 283,721 230,183 Deferred tax assets 57,740 51,290
Revenue 1,399,355 1,164,078 Total assets 12,546,473 11,772,546

Impairment loss on financial assets (137,613) (60,204) Liabilities

Personnel expenses (299,502) (279,774) Derivative liabilities 50,312 33,140
Depreciation and amortisation (31,670) (25,070) Deposits from banks 384,356 414,089
Other expenses (247,407) (123,012) Deposits from customers 6,506,449 5,142,907
Profit before tax 683,163 676,018 Borrowings 2,695,019 3,927,240
Income tax expense (212,035) (207,395) Current tax liabilities 3,185 1,691
Profit after tax attributable to equity holders of the Bank 471,128 468,623 Retirement benefit obligation 88,478 75,669
Other comprehensive income Other liabilities 870,268 544,688
Total liabilities 10,598,067 10,139,424
Items that will not be reclassified to profit or loss:
Actuarial gain/(loss) on defined benefit liability 1,823 (15,103)
Capital and reserves
Items that are or may be reclassified to profit or loss: Stated capital 400,000 400,000
Impairment loss on investment securities at FVOCI 7,856 4,959 Retained earnings 968,311 683,756
Release to profit or loss on derecognised FVOCI assets (net of tax) (2,444) (509) Statutory reserve 544,675 485,784
Net gain/ (loss) on fair value on financial assets at FVOCI (net of tax) 37,154 (12,857) Credit risk reserve 40,135 112,453
Other comprehensive income, net of tax 44,389 (23,510) Other reserves (4,715) (48,871)
Total comprehensive income 515,517 445,113 Total equity 1,948,406 1,633,122
Profit attributable to:
Controlling equity holders of the Bank 471,128 468,623 Total equity and liabilities 12,546,473 11,772,546
Total comprehensive income attributable to:
Controlling equity holders of the Bank 515,517 445,113
Earnings per share
Basic & Diluted earnings per share (Ghana Cedis per share) 5.24 5.21

Condensed Statement of Changes in Equity

for the year ended 31 December 2020
(all amounts are expressed in thousands of Ghana Cedis)
Stated capital Retained Statutory Credit risk Other Total
earnings reserve reserves reserves
2020 GHS’000 GHS’000 GHS’000 GHS’000 GHS’000 GHS’000
Balance as at 1 January 400,000 683,756 485,784 112,453 (48,871) 1,633,122
Total comprehensive income
Profit for the year - 471,128 - - - 471,128
Other comprehensive income
Defined benefit plan actuarial gain - - - - 1,823 1,823
ECL on investments at FVOCI - - - - 7,856 7,856
Release to profit or loss - FVOCI assets - - - - (2,444) (2,444)
Fair value gain on financial assets at FVOCI - - - - 37,154 37,154
Total other comprehensive income - - - - 44,389 44,389
Total comprehensive income - 471,128 - - 44,389 515,517
Transactions with equity holders of the Bank
Contributions and distributions
Share based payment transactions - - - - (233) (233)
Dividends to equity holders - (200,000) - - - (200,000)
Total contributions and distributions (200,000) - - (233) (200,233)
Other transfers
Transfer from credit risk reserve - 72,318 - (72,318) - -
Transfer to statutory reserve - (58,891) 58,891 - - -
Total other transfers - 13,427 58,891 (72,318) - -
Balance at 31 December 400,000 968,311 544,675 40,135 (4,715) 1,948,406
Condensed Statement of Changes in Equity
for the year ended 31 December 2020
(all amounts are expressed in thousands of Ghana Cedis)
Stated capital Retained Statutory Credit risk Other Total
earnings reserve reserves reserves

2019 GHS’000 GHS’000 GHS’000 GHS’000 GHS’000 GHS’000

Balance at 1 January 400,000 491,108 368,628 103,634 (25,897) 1,337,473
Total comprehensive income
Profit for the year - 468,623 - - - 468,623
Other comprehensive income
Defined benefit plan actuarial loss - - - - (15,103) (15,103)
ECL on investments at FVOCI - - - - 4,959 4,959
Release to profit or loss - FVOCI assets - - - - (509) (509)
Fair value loss on financial assets at FVOCI - - - - (12,857) (12,857)
Total other comprehensive income - - - - (23,510) (23,510)
Total comprehensive income - 468,623 - - (23,510) 445,113
Transactions with equity holders of the Bank
Contributions and distributions
Share based payment transactions - - - - 536 536
Dividends to equity holders - (150,000) - - - (150,000)
Total contributions and distributions - (150,000) - - 536 (149,464)
Other transfers
Transfer to credit risk reserve - (8,819) - 8,819 - -
Transfer to statutory reserve - (117,156) 117,156 - - -
Total other transfers - (125,975) 117,156 8,819 - -
Balance at 31 December 400,000 683,756 485,784 112,453 (48,871) 1,633,122

Condensed Statement of Cash Flows

for the year ended 31 December 2020 Notes to the financial statements
(all amounts are expressed in thousands of Ghana Cedis)

2020 2019 Reporting entity

Cash flow from operating activities GHS’000 GHS’000 Absa Bank Ghana Limited (the "Bank") is a private company incorporated and
Profit after tax 471,128 468,623 domiciled in Ghana. The address of the Bank's registered office is Absa Head
Adjustments for: Office, High Street, P. O. Box 2949, Accra. The Bank primarily is involved in
Depreciation and amortisation 31,670 25,070 universal banking, spanning wholesale and retail banking, investment and
asset management. The annual audited financial statements were
Net impairment loss on financial assets 137,613 60,204
authorised for issue on 24 March 2021.
Income tax expense 212,035 207,395
Net interest income (965,138) (783,019)
Absa Bank Ghana Limited is a wholly owned subsidiary of Absa Group
Accrued non interest income (153,437) (97,376)
Limited (AGL), a limited liability company incorporated in the Republic of
Accrued operating expenses 64,939 (5,595) South Africa.
Equity settled share based payments (233) 536
Loss on disposal of property and equipment 1,154 1 Basis of preparation
(200,269) (124,161) The condensed financial statements have been extracted from the audited
Changes in: financial statements which are prepared in accordance with International
Non pledged trading assets 703,706 (975,501) Financial Reporting Standards (IFRS) as issued by the International
Loans and advances to banks (35,235) 25,003 Accounting Standards Board (IASB) and adopted by the Institute of
Loans and advances to customers (579,300) (1,143,306) Chartered Accountants Ghana (ICAG) and in a manner required by the
Other assets 80,365 (15,074) Companies Act, 2019 (Act 992) and the Banks and Specialised
Deposits from banks 11,551 206,338 Deposit-Taking Institutions Act, 2016 (Act 930) and are consistent with
Deposits from customers 1,359,093 408,074 those applied in the preparation of the annual audited financial statements.
Other liabilities 88,872 85,618
1,428,783 (1,533,009) The condensed financial statements have also been prepared in line with
Interest received 1,354,137 1,094,721 the Bank of Ghana Guide for Publication for Banks and Bank of Ghana
Interest paid (416,034) (300,956) licensed financial institutions.
Taxes paid (228,561) (221,186)
Net cash flows from operating activities 2,138,325 (960,430) The annual audited financial statements are available for inspection at the
Cash flows from investing activities Head Office of Absa Bank Ghana Limited.
Acquisition of investment securities (1,784,183) (1,499,211)
Proceeds from sale of investment securities 1,062,604 1,252,701 Use of judgements and estimates
Acquisition of property and equipment (64,706) (46,227) In the preparation of the annual financial statements, management is
required to make judgements, estimates and assumptions that affect
Proceeds from disposal of property and equipment 123 22
reported income, expenses, assets, liabilities and disclosure of contingent
Acquisition of intangible assets (1,027) (680)
assets and liabilities. Use of available information and the application of
Net cash flows used in investing activities (787,189) (293,395)
judgement is inherent in the formation of estimates. Actual results in the
Financing activities
future could differ from these estimates, which may be material to the
Repayment of lease liability (7,627) (6,616) financial statements within the next financial period. The impact of such
Proceeds from borrowed funds 2,225,617 3,707,912 revisions is recognised in the period in which the estimates are revised and
Repayment of borrowed funds (3,466,915) (2,178,343) any future period impacted.
Dividends paid (200,000) (150,000)
Net cash used in financing activities (1,448,925) 1,372,953 Interest income and expenses
Net increase in cash and cash equivalents (97,789) 119,128 Interest income and expense are recognised in profit or loss using the
Balance at beginning 1,532,655 1,336,090 effective interest method. The ‘effective interest rate’ is the rate that
Effect of exchange rate fluctuations on cash and cash exactly discounts estimated future cash payments or receipts through the
equivalents held 75,433 77,437 expected life of the financial instrument to:
Cash and cash equivalents at 31 December 1,510,299 1,532,655 • the gross carrying amount of the financial asset; or
Notes to the financial statements (cont’d)

with International Standard on Auditing (ISA) 810 (Revised), Engagements to

• the amortised cost of the financial liability. Report on Summary Financial Statements.

Fee and commission income The engagement partner on the audit resulting in this independent auditor’s
Net fee and commission income that are integral to the effective interest rate on report is Labaran Amidu (ICAG/P/1472).
a financial asset or financial liability are included in the determination of
effective interest rate.
Fee and commission income from contracts with customers is measured based .............................................................
on the consideration specified in a contract with a customer. The Bank For and on behalf of:
recognises revenue when it transfers control over a service to a customer. KPMG: (ICAG/F/2021/038)
Revenue from account service and servicing fees is recognised over time as the CHARTERED ACCOUNTANTS
services are provided. Revenue related to transactions is recognised at the point 13 YIYIWA DRIVE, ABELENKPE
in time when the transaction takes place. P O BOX GP 242
Other fee and commission expenses relate mainly to transaction and service ACCRA
fees, which are expensed as the services are received.
26 March 2021
Net trading income
Net trading income comprises gains less losses related to trading assets and Disclosures – Quantitative
liabilities and includes all fair value changes, interest, dividends and foreign
exchange differences. 2020 2019
Capital adequacy ratio* 22.68% 20.09%
Letters of credit and guarantees Non-performing loan (NPL) ratio 7.70% 6.64%
Letters of credit and guarantees amounted to GHS 1,227,001,795 Liquid ratio 76.63% 78.32%
(2019: GHS 1,024,616,113)
*The 2019 Capital adequacy ratio has been represented in line with the
Undrawn loan commitments Capital Requirement Directive (CRD) for comparative purposes.
Undrawn formal stand-by loan and other facilities, credit lines and other
commitments to lend GHS 1,045,067,337 (2019: GHS 1,825,199,100) Disclosures – Qualitative

Dominant Risks
The Bank has exposure to the following risks from its use of financial
instruments and from operations:
• Credit risk
INDEPENDENT AUDITOR’S REPORT • Liquidity risk
• Market risk
To the Members of Absa Bank Ghana Limited • Operational risk

Opinion The Board of Directors has overall responsibility for the establishment and
The condensed financial statements, which comprise the statement of financial oversight of the Bank’s risk management framework. The board has estab-
position as at 31 December 2020, and the statements of comprehensive lished the Bank’s Asset and Liability (ALCO) and the Credit and Operational
income, changes in equity and cash flows for the year then ended and related Risk committees, which are responsible for developing and monitoring the
notes, are derived from the audited financial statements of Absa Bank Ghana Bank’s risk management policies in their specified areas.
Limited for the year ended 31 December 2020.
Other disclosures
In our opinion, the accompanying condensed financial statements are consis- 1. The condensed financial statements have been prepared on a going
tent, in all material respects, with the audited financial statements, in accor- concern basis. We have no plans or intentions, for example to dispose
dance with the basis described in the notes. off the business or cease operations that may materially alter the
carrying value or classification of assets and liabilities reflected in the
Condensed Financial Statements condensed financial statements.
The condensed financial statements do not contain all the disclosures required
by International Financial Reporting Standards and in the manner required by 2. These policies have been consistently applied to all the years.
the Companies Act, 2019 (Act 992) and the Banks and Specialised Deposit-Tak-
ing Institutions Act, 2016 (Act 930) applied in the preparation of the audited 3. For the period under review, the bank did not record any statutory
financial statements of Absa Bank Ghana Limited. Reading the condensed liquidity breaches and therefore did not incur any sanctions.
financial statements and our report thereon, therefore, is not a substitute for 2020 2019
reading the audited financial statements and our report thereon. (a) Default in statutory liquidity Nil Nil
(b) Sanctions Nil Nil
The Audited Financial Statements and Our Report Thereon
We expressed an unmodified audit opinion on the audited financial statements 4. Other regulatory breaches (including onsite examination)
in our report dated 24 March 2021. That report also includes the communica- (a) Number of breaches 1 6
tion of key audit matters. Key audit matters are those matters that in our (b) Total sanctions (GHS’000) 69 306
professional judgement, were of most significance in our audit of the financial
statements for the current period. 5. The financial statements do not contain any untrue statements,
misleading facts or omit material facts, to the best of our knowledge.
Directors’ Responsibility for the Condensed Financial Statements
The directors are responsible for the preparation of the condensed financial Signed:
statements in accordance with the basis described in the notes.

Auditor’s Responsibility
Our responsibility is to express an opinion on whether the condensed financial Frances Adu-Mante Abena Osei-Poku
Chairperson Managing Director
statements are consistent, in all material respects, with the audited financial
statements based on our procedures, which were conducted in accordance

Absa Bank Ghana Limited. Registration no. CS144072016. Regulated by Bank of Ghana. Toll free: 0800 222 333