Audio By Carbonatix
Guaranty Trust Bank was the most profitable bank in the country last year, with a profit margin of 68.8%.
According to the 2021 PwC Ghana Banking Survey, the banking industry in the country experienced an overall decline in profit before tax margin last year.
GT Bank, Standard Chartered Bank and Zenith Bank recorded the highest profit before tax margins, last year.
GT Bank’s profit before tax margin increased by 7.5% to 68.8% in 2020. The improvement is attributable to an 18% growth in operating income which was driven by increased interest income on investment securities as well as fees and commission income, and cost reductions.
Stanchart recorded a ₵251 million increase in profit before tax resulting in a profit before tax margin of 65.6%.
The increase in PBT from ₵ 424 million in 2019 to ₵ 675 million in 2020 was driven by increases in fee and commission income and net trading income. Fee and commission income increased by 47.0% as a result of the surge in the use of the bank’s digital channels and products by retail banking customers.
Income earned from the trade of debt instruments increased by 147.5% as the Stancharct increased its holdings in government securities. Operational costs for the bank also reduced.
UBA recorded the largest decline in profit before tax margin in 2020. The bank increased its operating income by 3.5% to ₵407.5 million last year.
However, this was eroded by impairment charges on financial assets which increased from ₵5.5 million in 2019 to ₵61.1 million in 2020. Nonetheless, it was the 5th most profitable bank in Ghana in 2021.
Access Bank Ghana placed 4th, whilst Ecobank, Stanbic, Cal and Societe Generale made up the top 10 most profitable banks last year.
Omni BSIC placed last with a loss margin of 83%.
First National Bank continued its profitability path since 2019.
Overall, the banking industry in Ghana witnessed a decline in profit, from an average of 41.6% in 2019 to an average of 40.2% last year.
The decline in the profit margin could be attributed to the economic impact of Covid-19 pandemic.
Profit before tax margin
| Bank | 2020 | 2019 |
| GT Bank Ghana | 68.8% | 68.6% |
| Stanchart | 65.6% | 45.7% |
| Zenith Bank Ghana | 63.8% | 49.4% |
| Access Bank Ghana | 60.9% | 20.8% |
| UBA | 54.9% | 49.5% |
| Absa | 48.8% | 58.2% |
| Ecobank Ghana | 42.8% | 38.4% |
| Stanbic Bank | 41.9% | 42.2% |
| Cal | 40.7% | 44.3% |
| Societe Generale | 40.4% | 26.2% |
| Bank of Africa | 39.4% | 41.3% |
| Fidelity Bank | 39.0% | 35.6% |
| FBN | 37.3% | 38.9% |
| First Atlantic Bank | 33.7% | 0% |
| GCB | 31.1% | 36.1% |
| Republic Bank | 23.6% | 29.9% |
| ADB | 17.6% | 4.2% |
| Prudential Bank | 15.9% | 12.9% |
| UMB | 12.2% | 0% |
| CBG | 12.2% | 18.8% |
| NIB | 7% | 0% |
| FNB | 0.3% | 3.8% |
| Omni BSIC | -83.3% | 0% |
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