Consolidated Bank Ghana Limited (CBG) strengthened its financial position in 2025, recording growth in total assets, customer deposits, operating revenue and shareholders’ equity, according to the 2025 State Ownership Report.

The report showed that the wholly state-owned bank’s total assets increased by 7.33 per cent, from GH¢16.64 billion in 2024 to GH¢17.86 billion in 2025.

The expansion was driven mainly by higher investment securities, which offset a contraction in the bank’s loan portfolio.

Customer deposits also increased by 11.89 per cent, from GH¢12.99 billion to GH¢14.53 billion, reinforcing CBG’s funding base and liquidity position.

Investment securities rose by 19.58 per cent to GH¢12.34 billion, while the bank closed the year with GH¢4.93 billion in cash and cash equivalents, up from GH¢3.89 billion in 2024.

CBG’s interest income grew by 7.56 per cent, from GH¢2.07 billion in 2024 to GH¢2.22 billion in 2025. At the same time, funding costs declined by 5.60 per cent to GH¢870.57 million.

These developments resulted in an 18.18 per cent increase in net interest income to GH¢1.35 billion, while the bank’s spread margin improved from 55.35 per cent to 60.81 per cent.

Net operating income also increased by 8.43 per cent to GH¢1.71 billion, although net fees and commission income declined by 12.06 per cent to GH¢214.68 million.

The report said CBG maintained a strong liquidity position during the year, supported by the continued growth in customer deposits and investment securities.

Its liquid assets-to-total assets ratio improved from 89.31 per cent in 2024 to 90.87 per cent in 2025. The liquid assets-to-customer deposits ratio remained strong at 111.68 per cent, despite declining slightly from 114.41 per cent.

Bad loans decline

CBG also recorded an improvement in the quality of its loan portfolio, with the gross non-performing loan ratio falling from 15.03 per cent in 2024 to 12.50 per cent in 2025.

The report attributed the decline to improved loan recovery and credit-risk management.

Gross loans and advances, however, fell by 26.11 per cent to GH¢1.52 billion, reflecting what the report described as a cautious lending strategy amid heightened credit risk.

Consequently, the ratio of loans to customer deposits declined from 15.84 per cent to 10.46 per cent, indicating that the bank prioritised liquidity preservation over aggressive credit expansion.

Shareholders’ equity strengthens

The bank’s shareholders’ equity grew by 15.65 per cent, from GH¢1.29 billion to GH¢1.50 billion.

The improvement was supported by profit recorded during the year, a GH¢198 million deposit for shares and growth in statutory reserves.

CBG’s equity multiplier also improved from 12.85 times to 11.93 times, reflecting a modest reduction in financial leverage, while its debt-to-assets ratio remained stable at 0.92 times.

According to the report, the combination of sustained deposit growth, a stronger equity base and improved asset quality enhanced the bank’s long-term financial resilience.

CBG’s capital adequacy ratio, however, declined from 23.52 per cent in 2024 to 14.82 per cent in 2025, although it remained above the regulatory minimum.

Bank remains profitable despite earnings decline

Despite the gains in revenue, deposits and assets, CBG recorded lower profitability due to increased impairment charges and operating expenses.

Impairment losses on financial assets rose to GH¢308.76 million, while personnel expenses increased by 13.61 per cent to GH¢819.94 million.

Profit before tax subsequently fell by 87.25 per cent, from GH¢160.06 million in 2024 to GH¢20.40 million in 2025. Net profit also declined from GH¢88.72 million to GH¢7.38 million.

The bank’s net profit margin fell from 5.62 per cent to 0.43 per cent, while return on assets declined from 0.53 per cent to 0.04 per cent.

Return on equity also decreased from 6.85 per cent in 2024 to 0.49 per cent in 2025.

The report noted that retained losses remained high at GH¢1.93 billion, constraining CBG’s ability to generate capital internally. It identified the restoration of stronger profitability as essential to supporting the bank’s future growth.

Social and environmental initiatives

Beyond its financial operations, CBG undertook several social interventions in 2025, including a design and skills programme for blind, deaf and female young people in the Upper West Region in partnership with the Nubuke Foundation.

It donated books to nine schools across nine regions, renovated the Osu Salem Primary School library and supported corrective surgery for three girls and two boys through Operation Smile Ghana.

The bank also donated office furniture to the Ghana Police Service’s Central Motor Traffic and Transport Department and supported the Kwahu Business Forum, the Africa Artificial Intelligence Conference and women-focused programmes.

As part of its environmental sustainability programme, CBG installed solar systems at its head office and selected branches to improve energy efficiency and reduce carbon emissions.

It also implemented a carbon-footprint portal to monitor electricity, fuel, water and paper consumption across its operations.

Other measures included tree planting, climate-risk mapping, scenario analysis, stress testing and the introduction of a code of ethics requiring third-party vendors to comply with environmental, social and governance considerations.

CBG, established on August 1, 2018, operates 110 branches nationwide and primarily provides deposit-taking, financial intermediation and other banking services to support national development.