The banking sector recorded ¢4.4 billion in profit before tax in first-half of 2022, data from the Bank of Ghana has revealed.  

This represented 21.6% growth, compared with 32.1% in the previous year.

According to the Bank of Ghana, growth in net interest income was slower than the previous. However, net fees and commissions shot up significantly, over the previous year.

Net interest income grew at 12.4%, compared with 19.4 percent a year ago. Net fees and commissions, however, grew by 29.2%, compared to 19.6% in the previous year, reflecting a rebound in trade finance-related business. These developments, the Central Bank, said culminated in a 23.0 percent growth in operating income, compared with a growth of 15.7% in the corresponding year.

Operating expenses also recorded a higher growth of 22.9%, compared to 7.3% in the previous year, moderating the growth in profit before tax during the first half of 2022.

Balance sheet remains robust

Again, an assessment of the banking sector’s performance for the first half of 2022 showed robust growth in assets and deposits.

Total assets grew by 22.8% to ¢200.0 billion at end-June 2022, compared to the growth of 17.2% in the previous year.

Total deposits grew at a slower pace by 19.1% to ¢131.3 billion, relative to 22.5% growth a year earlier.

Key financial soundness indicators positive

Meanwhile, key Financial Soundness Indicators of the banking industry remained positive.

The Capital Adequacy Ratio was 19.4% in June 2022, well above the regulatory minimum of 13.0%.

Core liquid assets to short-term liabilities improved to 30.2%, compared with 27.5% in the previous year. The non-performing loans ratio also improved to 14.1% at the end of June 2022, compared with 17.0% in June 2021, reflecting some moderation in the growth of the stock of non-performing loans, as well as the rebound in credit growth.