This report covers developments in Ghana’s banking sector during the first two months of 2019 compared with the same period last year.
Following the completion of the recent reforms and recapitalization exercise, the industry currently comprises twenty three (23) banks, fourteen (14) of which are foreign-controlled with the remaining nine (9) being domestically-controlled.
The branch network of banks across the sixteen (16) regions of the country stood at 1,225 branches as at end-February 2019, from 1,546 as at end-February 2018, also reflecting bank consolidations and the resulting branch rationalisation within the industry.
The performance of the recapitalized industry was stronger during the first two months, pointing to a profitable, liquid and solvent sector with strong growth prospects. Growth in the industry’s total assets was robust, with year-on-year growth of 14.5 percent as at end-February 2019, funded largely by increased deposits and equity injection from the recapitalization exercise.
The growth in the total assets reflected a rebound in gross advances after contracting a year ago, while the rate of increase in investments remained virtually unchanged from that of the previous year.
The industry also posted stronger profit-after-tax during the first two months of 2019 compared with the corresponding period in 2018.
The improved profitability performance was on the back of higher growth in net interest income and lower growth in operational expenses and provisions.
