First Atlantic Bank PLC (FAB) delivered a strong start to 2026, posting solid earnings growth supported by expanding core revenues, improved liquidity, and strengthening capital buffers, according to the 2026 first quarter Credit Assessment Report by research firm Tesah Capital, a wealth management, investment, and pensions advisory company.
The bank’s performance in the first quarter of 2026 reflects broad-based growth across interest income, fees, trading activities, and customer deposits, alongside notable improvements in asset quality and liquidity.
Despite a moderate rise in operating expenses, FAB maintained profitability momentum and strengthened its balance sheet position, reinforcing its resilience in a competitive banking environment.
Profit growth anchored by strong revenue expansion
FAB recorded a 19.60% year-on-year (y/y) increase in operating profit, rising to GH₵144.47 million in the first quarter of 2026.
This performance was driven by a sharp 28.35% year-on-year increase in operating income, which climbed to GH₵270.99 million, supported by stronger contributions from its core revenue streams.
Net interest income rose by 18.32% year-on-year to GH₵195.39 million, compared to GH₵165.14 million in Q1 2025.
This growth was attributed to an expansion in interest-earning assets and improved earnings efficiency across the bank’s lending and investment portfolio.
Non-interest revenue also delivered robust gains.
Net fees and commission income surged by 38.17% year-on-year to GH₵42.70 million, up from GH₵30.91 million in the corresponding period of 2025.
According to the report, this was supported by increased transaction volumes and enhanced activity across fee-generating services.
Trading operations provided an additional boost to profitability, with net trading income rising significantly by 149.63% year-on-year to GH₵32.71 million, compared to GH₵13.10 million in the first quarter of 2025.
This performance helped strengthen overall revenue diversification and offset cost pressures.
The bank also benefited from a net impairment recovery of GH₵20.72 million, reflecting improved credit risk management and recoveries during the period.
However, operating expenses increased by 27.61% year-on-year to GH₵147.24 million, leading to a marginal deterioration in the cost-to-income ratio, which moved from 54.38% in the first quarter of 2025 to 54.76% in the first quarter of 2026.
Liquidity strength improves significantly
The report highlights a marked improvement in liquidity indicators for First Atlantic Bank PLC during the review period.
The bank’s liquid ratio rose sharply to 174%, up from 103% in the first quarter of 2025, reflecting a stronger capacity to meet short-term obligations and improved asset liquidity management.
Cash and balances with banks expanded by 37.04% year-on-year to GH₵5.89 billion, while investment securities more than doubled, increasing by 126.96% year-on-year to GH₵5.42 billion.
These gains significantly strengthened the bank’s liquidity buffer and enhanced its funding flexibility.
Customer deposits also recorded strong growth, increasing by 47.73% year-on-year to GH₵15.66 billion, providing a stable foundation for lending operations and future expansion strategies.
Capital position strengthens above regulatory threshold
On the capital adequacy front, FAB maintained a strong and comfortable position well above regulatory requirements.
The bank reported a Capital Adequacy Ratio (CAR) of 21.35%, significantly exceeding the Bank of Ghana’s minimum requirement of 13%.
This represents a notable improvement from 17.46% recorded in the first quarter of 2025, indicating stronger capital buffers and enhanced capacity to absorb potential financial shocks while supporting future growth.
The bank’s leverage position also improved, with its leverage ratio rising to 8.45%, compared to 7.76% in the same period last year.
This reflects stronger capital support relative to total exposure levels.
Asset quality shows notable improvement
Asset quality indicators for First Atlantic Bank PLC improved meaningfully in the first quarter of 2026, reflecting tighter credit risk management and portfolio discipline.
The Non-Performing Loans (NPL) ratio declined to 19.96%, down from 23.52% in the first quarter of 2025, signalling improved loan performance and recovery efforts.
This improvement came alongside an 8.05% year-on-year increase in loans and advances to customers, which rose to GH₵1.69 billion from GH₵1.56 billion in the first quarter of 2025.
According to the report, this indicates that loan growth was achieved without compromising credit quality, suggesting effective risk controls.
Outlook and investment recommendation
In its concluding assessment, Tesah Capital noted that First Atlantic Bank PLC’s liquidity position remains strong enough to support its financial obligations, backed by a robust Capital Adequacy Ratio of 21.35%, well above the regulatory minimum of 13%.
The report also highlighted strong asset growth driven by a 47.73% year-on-year expansion in customer deposits, alongside improving asset quality as reflected in the declining NPL ratio of 19.96%.
Based on the bank’s performance indicators, Tesah Capital recommended short-term fixed deposit investments with First Atlantic Bank PLC, specifically within the 91-day to 182-day maturity range.
Overall, the first quarter of 2026 performance underscores a bank with strengthening fundamentals, improving efficiency in key income lines, stronger liquidity buffers, and enhanced capital adequacy—positioning FAB for continued stability and growth in the remainder of the financial year.
