Banks’ Profitability Strengthens by 32.6% as Interest Income and Fees Boost Earnings
Ghana’s banking industry delivered a sharp rise in profitability in the first half of 2025, buoyed by stronger interest income and a rebound in other income streams, even as operating costs climbed.
Profit-after-tax rose 32.6 per cent year on year to GH¢7.2bn ($515mn) by the end of June, the Bank of Ghana said in its July monetary policy report. Profit-before-tax increased by a similar margin to GH¢10.8bn, compared with GH¢8.1bn a year earlier.
The gains were underpinned by robust growth in net interest income, which expanded 20.2 per cent to GH¢14.2bn, helped by higher yields on government securities and elevated lending rates. Interest income rose to GH¢21.6bn from GH¢18bn in the same period of 2024. Interest expenses also accelerated, rising 20.7 per cent to GH¢7.5bn.
Fee-based income provided additional support, with net fees and commissions growing 17.8 per cent. Other income surged 52.2 per cent to GH¢3.6bn, reversing a contraction a year earlier. In total, gross income reached GH¢28.3bn, up 23.4 per cent on the year.
The sector’s operating costs, however, grew 21.4 per cent, reflecting higher staff and administrative expenses. Impairment charges on loans and provisions for bad debt eased, falling 14.8 per cent, a smaller contraction than the 39.5 per cent recorded in 2024.
The figures highlight the resilience of Ghana’s banking system amid still-tight financing conditions. But analysts caution that rising operating costs and reliance on high interest rates for income growth could pressure margins if monetary policy loosens.
