Banks post GH¢5.7bn profit-after-tax in August marking 41.4% yoy growth
The banking industry’s profitability remained strong in the first eight months of 2023 according to the Governor of the Central Bank, Dr Ernest Addison.
The Governor during the 114th MPC press briefing on Monday, noted that the banking industry recorded profit-after-tax of GH¢5.7 billion, representing a 41.4 percent annual growth, compared with 26.5 percent growth recorded last year.
Specifically, net interest income increased sharply by 37.9 percent to GH¢13.5 billion, while net fees and commissions went up by 27.3 percent to GH¢2.9 billion.
The key financial soundness indicators remained broadly stable. Profitability indicators improved, with Return-on-Equity (ROE) at 36.9 percent in August 2023 from 23.0 percent in August 2022.
Return-on-Assets (ROA) increased to 5.4 percent from 4.7 percent in the same comparative period. Also, liquidity indicators for the industry improved during the period under review.
Capital Adequacy Ratio (CAR) adjusted for the regulatory reliefs was 14.2 percent in August 2023, higher than the revised prudential minimum of 10 percent.
The industry’s NPL ratio however increased to 20.0 percent in August 2023, from 14.3 percent in August 2022, attributable to elevated credit risk associated with the lagged effect of the macroeconomic crisis in 2022.
