The banking industry’s shareholders’ funds contracted by 20.5% to ¢21.1 billion in April 2023, compared to a growth of 12.2% in April 2022.

According to a Banking Sector Development Report by the Bank of Ghana, the decline in shareholders’ funds came from the moderation in banks’ reserves on account of losses made by the banks in the 2022 financial year.

Also, growth in paid-up capital was at 2.6%, relative to the 3.8% contraction recorded in April 2022.

Share of deposits in banks’ liabilities and shareholders’ funds increased

The share of deposits in banks’ liabilities and shareholders’ funds increased to 77.2% in April 2023, from 65.5% in the corresponding period last year, reflecting the sustained increase in deposits growth during the review period.

The share of borrowings, however, declined during the period under review to 6.7%, from 13.3%, in line with the observed contraction in total borrowings.

The size of shareholders’ funds in banks’ liabilities and shareholders’ funds also declined to 8.9%, from 13.7%, consistent with the slowdown in the growth of shareholders’ funds.

The share of other liabilities also decreased to 7.2%, from 7.6% a year earlier.