Basic Bank Information
Prudential Bank Limited (full name: Prudential Bank Limited) is a privately owned commercial bank established on August 15, 1993, headquartered in Accra, Ghana, with its specific address at 8 John Hammond Street, Ring Road Central, Kanda (coordinates: 5°). 34'24.0"N, 0°11'31.0"W）。 The bank is owned by private shareholders, including J.S. Addo Consultants Ltd, Ghana Union Assurance Company Ltd, Social Security & National Insurance Trust (SSNIT) and National Trust Holding Company Ltd (NTHC). As a private company, PBL has flexible operational decisions and is able to respond quickly to market changes and customer needs. PBL also has a wholly owned subsidiary, Prudential Securities Limited, which focuses on treasury management, superannuation fund management, corporate finance, business advisory and equity and economic research.
PBL's services cover the entire territory of Ghana and as of 2022, it has about 41 branches in major cities such as Accra, Tema, Kumasi, Kofidua, Takoladi, Capecoste, Tamale, Techman and Sunani. The ATM network is widely distributed throughout Ghana, providing customers with convenient cash deposit and withdrawal services. PBL serves individuals, professionals, SMEs and large corporations with more than 300,000 clients for both retail and corporate finance needs.
In terms of regulation and compliance, PBL is strictly regulated by the Bank of Ghana to ensure that its operations comply with national financial regulations. PBL participates in the Ghana Deposit Protection Scheme, which provides deposit protection of up to 50,000 GHS 50,000 per depositor under the Deposit Protection Act 2016. There have been no major compliance issues related to PBL in the near future, but in 2022, PBL's financial performance has been affected by the impact of the Domestic Debt Exchange Program (DDEP), and customers need to pay attention to its subsequent recovery.
Financial health
PBL's financial performance reflects its position as a leading bank in Ghana, but was significantly impacted by the DDEP in 2022. According to 2022 data, PBL's total assets are 4.681 billion GHCDI, and shareholders' equity is 85.1 million GHCDI. However, due to the impact of DDEP, PBL's pre-tax margin decreased to -79.80%, well below the 30.50% in 2021, with a return on assets (ROA) of -6.90% and a return on equity (ROE) of -96.80%. Despite this, the Ghanaian banking sector showed signs of recovery in the first quarter of 2023, with total industry profits rising 45.8% to GHS 2.8 billion and net impairment losses falling to GGHA 944 million from GGHA 19.5 billion in 2022.
Deposit & Loan Products
PBL offers a wide range of deposit and loan products to meet the needs of different customers.
Deposits:
- Current Deposits: Includes individual current accounts and corporate current accounts, including Ghanaian Cedi (GHS), US Dollar (USD), Euro (EUR) and British Pound Sterling (GBP). The personal current account is suitable for daily expenses and transfers, and provides cheque books and e-banking services. The company's current account supports more complex financial needs, such as trade finance and foreign exchange trading.
- Fixed Deposits: Higher interest rates are available, with tenors ranging from 30 to 365 days, and interest rates ranging from 1.5% (30 days) to 10.0% (365 days). Customers can choose between fixed or variable interest rates, which are suitable for long-term savings.
- High-yield savings accounts, such as PBL Student Savings, which are designed for students, offer a 1.0% APR, no processing fees, and come with a Visa Electron card, which is suitable for younger customers to manage their daily expenses.
- Large Certificate of Deposit (CD): A fixed-rate product with a tenor from 30 to 365 days and an interest rate of 1.5% to 10.0%, suitable for customers who are looking for stable income.
Loans:
- Mortgages: Support first-time home buyers and real estate investments, with interest rates ranging from 29.00% to 38.00% (cash and non-cash secured loans) with flexible repayment terms that can be customized based on the customer's income and credit profile.
- Car loans: Provide financial support for car purchases, fast approval, competitive interest rates, and customers can choose to pay in installments or in a lump sum.
- Personal Line of Credit: For consumer needs such as home improvement, travel, education, etc., loan amounts range from GHS 1,000 to GHS 35,000, with a representative annualized percentage (APR) of 8.9% (for loans from GHS 7,500 to GHS 35,000), with repayment terms ranging from 1 to 8 years, with flexible options for early repayment and adjustment of repayment plans.
- Corporate Finance: Supporting agricultural projects (e.g. cocoa and coffee farming) and SME development by providing short-term loans, long-term loans and trade finance, in line with Ghana's National Economic Development Plan.
Digital service experience
PBL's digital services are one of its core competencies, and its mobile banking app (PBL Mobile App), online banking platform (netWise) and mobile banking service (mobiWise) provide customers with convenient financial management tools. PBL Mobile App supports:
- Account management: check balances, transaction history
- Real-time transfers: support domestic and international transfers
- Bill Payment: Pay bills such as utility bills
- Card management: Manage debit and credit cards
- Other features: ATM locator, loan calculator
The app supports biometric logins, such as face recognition and fingerprint login, for added security and convenience. PBL also offers the DigiSpace online portal, which allows customers to update their account information online. The app is available for download on [Google Play] and the App Store, and user ratings are not disclosed, but it has been praised by customers for its feature-rich and user-friendly design.
Safety and security measures
PBL's deposits are protected by the Ghana Deposit Protection Scheme up to a maximum of 50,000 GHS 50,000. Banks use real-time transaction monitoring and multi-channel risk assessment systems to prevent financial fraud. PBL launched the #Prudentips series on social media, such as [LinkedIn] (https://gh.linkedin.com/company/prudential-bank-gh), to alert customers to emerging scams such as bank statement fraud.
Featured Services & Differentiation
PBL is well known in the Ghanaian banking sector for its agricultural financing and SME support. Featured services include:
- Agricultural financing: support for agricultural projects such as cocoa and coffee, and participation in the National Agricultural Development Program.
- SME support: Customized financing and advisory services to promote local economic development.
- Student account :P BL Student Savings, no commission, 1.0% interest rate, comes with a Visa Electron card.
- High Net Worth Services: Private banking services and customised wealth management solutions are provided through Prudential Securities Limited.
- Green Finance: ESG (Environmental, Social and Governance) investments may be supported, and specific products need to be confirmed by banks.
PBL demonstrates its social responsibility by sponsoring community events, such as women's empowerment workshops, and publishing financial literacy videos, such as #prudentips.
Market Position & Accolades
PBL is one of Ghana's leading private banks, ranking highly in client deposits and loans. In 2022, PBL's total assets were 4.681 billion ghanaian cedes, accounting for 2.07% of the total assets of the industry, ranking 18th; With a loan market share of 2.8%, it ranked 14th. Despite the impact of DDEP in 2022, PBL outperformed the industry average in terms of cost-to-income ratio (0.52) and liquidity metrics (liquidity/total deposits of 0.88). PBL has received a number of awards, including:
- "Best Digital Bank in Ghana": in recognition of its innovation in the field of digital services.
- "Most Innovative Bank": recognises its efforts in product development and service quality.
Conclusion
Prudential Bank Limited is a private commercial bank with a long history and comprehensive services, known for its solid position and localized services in Ghana's financial markets. Banks offer a wide range of deposits, loans and digital services, with a particular focus on agricultural financing and SME support. Despite the decline in financial performance due to the impact of DDEP in 2022, the overall recovery of Ghana's banking sector in 2023 suggests that PBL may have improved.
