Banks Post 22% Profit Growth to GHS 4.3bn in April 2025 Despite Slower Interest Income Growth
Ghana’s banking sector reported a 22.0% year-on-year increase in profit to GH¢4.3 billion in April 2025, up from GH¢3.5 billion a year earlier, underpinned by broad-based growth across income lines, according to the Bank of Ghana’s latest Banking Sector Development Report.
While net interest income remained the dominant revenue stream, growing by 15.5% to GH¢9.2 billion, the pace of expansion moderated compared to the 22.4% growth recorded in April 2024. Interest income rose 15.9% year-on-year to GH¢13.9 billion, reflecting subdued growth relative to the 19.4% gain observed a year prior.
The central bank attributed the slower growth in interest income to lower returns on money market instruments and declining lending rates, both shaped by evolving macroeconomic conditions.
Interest expenses increased by 16.5% to GH¢4.7 billion, a notable rise from the 14.0% growth in April 2024, with the uptick largely driven by a rise in banks’ borrowing levels.
Stronger growth was recorded in non-interest income streams. Net fees and commissions surged by 26.2%, more than doubling the 12.8% growth recorded in the corresponding period last year. Meanwhile, other income rebounded sharply, expanding by 27.8% to GH¢2.0 billion in April 2025, reversing a 20.8% contraction a year earlier.
Despite the solid earnings performance, key profitability indicators moderated. Return on equity (ROE) declined to 30.0% in April 2025, from 35.0% a year earlier, while return on assets (ROA) eased to 5.0%, compared to 5.4% in April 2024.
The data suggest that while the banking sector remains resilient and profitable, structural shifts in interest rate dynamics and a rising cost of funds could weigh on margins in the near term.
