Bank of Ghana Reports 38.7% Asset Growth in Banking Sector as Profits Surge in 2024
The Bank of Ghana’s 120th Monetary Policy Committee statement highlighted continued robust growth in the banking sector, with assets surging 38.7% year-on-year to GHS 339.3bn at the end of August 2024, compared to 19.6% in August 2023 (GHS 244.7bn).
Pre-tax and after-tax profits rose over the first eight months of 2024, underscoring the sector’s resilience amid economic recovery.
The Capital Adequacy Ratio (CAR) climbed to 10.3% in August 2024, up from 7.5% a year earlier. With regulatory relief measures, CAR stood at 13.8%, slightly lower than 14.2% in August 2023.
Liquidity and efficiency ratios also improved, reflecting strengthened financial stability within the industry.
However, the Non-Performing Loan (NPL) ratio increased to 24.3% in August 2024, from 20.0% the previous year, driven by rising defaults from large corporate borrowers.
This sharp uptick underscores ongoing concerns over heightened credit risk, which continues to weigh on the sector’s outlook despite broader improvements.
