Banking Industry: Total assets value nears GHS 200bn valuation
Total assets value of the banking industry rose to GHS 194.3bn at end-April 2022.
According to the Central Bank, this represents a 24.8% annual growth relative to the 16.4% growth in the previous year.
The growth, the BoG asserts was underscored by increased deposits and borrowings.
Total deposits grew by 21.3 percent to GH¢127.2 billion, while borrowings recorded a strong growth of 66.2 percent to GH¢25.9 billion at end-April 2022.
Meanwhile, the key financial soundness indicators of banks remained strong, with the Capital Adequacy Ratio at 21.3 percent, well above the regulatory minimum of 13.0 percent.
Core liquid assets to short-term liabilities improved to 28.2 percent in April 2022, compared with 24.9 percent a year earlier.
The Non-Performing Loan ratio eased to 14.3 percent at end-April 2022, compared with 15.5 percent in the previous year, signalling some improvement in asset quality during the year.
In the first four months of 2022, banks’ profit before tax was GH¢2.9 billion, representing a 26.3 percent growth, compared with 39.6 percent growth for the same period of last year.
Net interest income grew by 12.2 percent to GH¢4.6 billion, compared to 18.4 percent growth a year ago. Net fees and commissions grew by 17.7 percent to GH¢1.1 billion, compared with 26.5 percent growth last year, due to decline in trade finance-related activities in the economy.
Other income increased to GH¢1.0 billion, representing 117.5 percent growth, relative to the contraction by 7.9 percent last year.
These developments resulted in a 22.1 percent jump in operating income to GH¢6.7 billion, compared with 16.8 percent growth in the corresponding period of 2021. Operating expenses recorded 23.0 percent growth compared to 1.7 percent growth in the previous year.
