Banking Sector: Assets value, deposits rise by 43.7% and 46.5% YoY
Total assets value of the banking sector grew by 43.7 percentage points year-on-year (YoY) to reach GHS 249bn at end-October 2022.
At end-October 2021, total assets value of the banking sector was GHS 173.8bn.
Although not conspicuously stated in the newly released November 2022 Summary of Economic and Financial Data report by the Bank of Ghana, increments in the industry’s assets value can be attributed to growth in the industry’s cash and cash equivalents, investment securities and loans and advances to customers.
Regarding total advances made within the review period, the industry’s total loans and advances grew to GHS 81.2bn in October 2022 from GHS 51.6bn in October 2021, representing a 57.5% increase in total loans and advances made.
Deposits made by customers at the various banks amounted to GHS 172.1bn at end-October 2022, from the previous year’s figure of GHS 117.4bn.
Growth in deposits from customers, represents a 46.5% increment in deposits for the sector.
The sector’s non-performing loans remained at 14% at end-October 2022, indicating some stability in the asset quality of banks.
On YoY basis, the industry’s non-performing loans has declined by 2.4% from 16.4% in October 2021 to 14% in October 2022, indicating a slight improvement in the loan asset quality of banks.
The industry’s return on assets before tax declined by 0.4% within the review period, whereas the industry’s returns on equity after tax increased by 0.4% within the period under review.
Regarding liquidity indicators of the sector, core liquid assets to total assets and short term liabilities grew from 18.9% to 27.2% and 24.6% to 34.4% respectively within the review period.
