This report1 covers developments in the Ghanaian banking sector as at the end of December 2017. The number of licensed banks dropped to thirty-four (34), after the licenses of two insolvent banks, namely, UT and Capital banks were revoked in July 2017 due to their severe capital impairment.
Of the thirty-four (34) licensed banks, seventeen (17) were classified as domestically-controlled, while the remaining seventeen (17) were foreign-controlled.
By end-December 2017, the branch network of the banks stood at 1,483 distributed across the ten (10) regions of the country. The banking industry remained liquid, sound and profitable in 2017 as reflected by the performance of key Financial Soundness Indicators (FSIs).
In comparison with 2016, the pace of growth in the industry’s total assets, both domestic and foreign, moderated. The industry’s income statement recorded an improved performance in December 2017, arising mainly from increased growth in banks’ net operating income and income before tax.
Asset quality, however, remained a key risk as the industry’s Non-Performing Loans (NPL) ratio edged up in December 2017. The NPL ratios are however expected to improve as banks repair their balance sheets and tighten credit risk management practices.
