The Bank of Ghana has revealed that the adjusted asset position of Premium Bank as at 4^th January 2019 when its license was revoked by the sector regulator was approximately GH¢357.4 million.

The Bank of Ghana revealed this in a recent report on the Inventory of Assets and Liabilities of Premium Bank Ghana Limited as at 4^th January 2019 but noted that it continues to review the Bank’s records to ascertain its accurate asset position.

BoG indicated that it has appointed Vish Ashiagbor as receiver for the purposes of winding down the affairs of Premium Bank Ghana Limited.

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“As at 4^th January 2019, Premium Bank was insolvent on a Balance Sheet basis with its liabilities exceeding assets by approximately GHS561.4m. Upon appointment of the Receiver, we conducted a preliminary asset quality assessment and made adjustments in line with available supporting documentation. Our adjusted asset position of Premium Bank as at 4^th January 2019 is approx. GHS357.4m. We continue to review the Bank’s records and would make any necessary adjustments to the asset position”.
Bank of Ghana

Bank of Ghana explained that the total assets of Premium Bank were approximately GH¢841.7m as at January 4, 2019. However, BoG noted that from its initial assessment and Asset Quality Review it has adjusted the value of Premium Bank’s Assets to GH¢357.4m.

This value includes asset balances assumed by CBG per the P&A Agreement. According to the Bank of Ghana, Cash and bank balances mostly consist of cash held in bank accounts with BoG and commercial banks, remittances in transit and cash held in vaults and tills.

Premium Bank’s Management Accounts classified cash and cash equivalent and placements/investments as liquid assets. Total Liquid Assets on the books as at 4^th January 2019 was approximately GHS204.0 million. This represented 25% of total Assets of the Bank. However, Placements/Investments made up about 97% (GHS201.5m) of total Liquid Assets, the BoG disclosed.

Per the Management accounts, cash and bank balances amounted to approximately GH¢2.5m as at 4^th January 2019. Cash and bank balances mostly consisted of cash held in bank accounts with BoG and commercial banks, remittances in transit and cash held in vaults and tills.

Bank accounts of Premium Bank

Premium Bank’s GL indicated that the Bank maintained 22 accounts with 5 commercial banks with balances totaling GH¢1.87m.

“The adjusted position of approx. GHS1.85m reflects the actual balances transferred into our receivership accounts held with CBG. We have informed all correspondent banks of the receivership and requested for a confirmation of account balances. Further, we requested that all residual balances are transferred into our receivership account. We also instructed that all payment instructions should not be honored without prior authorization from the Receiver”.
Bank of Ghana

The total amount received from these banks following the regulator’s request to close and transfer all residual balances to the Receiver’s receivership accounts amounted to GH¢1k out of the GH¢333k stated in the management account.

On day one, BoG performed a physical count of cash held in vaults at the Bank’s head office and branch network. This was done in conjunction with CBG and BoG representatives. Total cash counted was the cedi equivalent of approximately GH¢137k, the report states. According to the Bank of Ghana, the cash counted was approximately GH¢31k higher than the GH¢106k stated in the Management Account and General Ledger of Premium Bank as at 4^th January 2019. The report further indicates that the cash was handed over on 4^th January 2019 following a sign-off of count sheets by CBG and BoG representatives.

The report details the assets and liabilities of Premium Bank Limited as at 4^th January 2019 when its license was revoked by the Bank of Ghana. However, BoG warned that the report was not prepared using procedures that constitute an audit or assurance engagement in accordance with International Standards on Auditing (“ISAs”), and accordingly no audit or assurance opinion has been expressed on the information contained in this report.