Profit margins of some banks fell in the third quarter of this year due to the impact of covid-19 on their operations.

Consolidated Bank Ghana and CAL Bank witnessed some dip in their earnings though Soceite Generale recorded a marginal increase in profit.

While Consolidated Bank profit fell by 68%, CAL Bank’s income witnessed just 3% drop in the nine months of this year.

There were mixed performances from the various income lines as Consolidated Bank Ghana grew its fees and commissions but witnessed a decline in its trading income, indicating little activities with regard to export financing and foreign transfers during the period.  

CAL Bank also registered a drop in fees and commission because of reduction in loans and advances as well waiver on fees during the covid-19 period, but its trading income more than doubled. The bank’s concentration on non-funded income during the period supported its growth despite a slowdown in credit.

However, the bank’s operating expenses rose by 16.1% year-on-year to GHS221.01 million in the nine months of 2020, due to the introduction of a deposit insurance scheme, application of IFRS 16 to leases and new head office depreciation. 

Accordingly, the bank’s cost-to-income ratio inched up by 1.6% to 44.6% in Q3 2020.

Both banks boasted of a strong balance sheet-that is assets and liabilities and owners equity- with Consolidated Bank registering GHS7.9 billion worth of customer deposits.

On the other hand, Societe Generale registered a 13.4% growth in income to GHS93 million for the first nine months of this year.

The growth in earnings was due to a reduction in loan losses and growth in interest income and trading income.

Although the improvement in asset quality helped to enhance earnings, growth was still lower compared to the previous year due to the impact of the pandemic on banking activity.

But its cost-to-income ratio was relatively high at 58%, a situation that requires attention if the bank is to record high profit going forward.

The bank’s balance sheet size was strong as it stood at about GHS9.3 billion, compared with GHS7.2 billion a year ago.

For the stability of the three banks, all the financial soundness indicators were pointing to the right direction as non-performing loans were low, far below the industry average of about 15.5%.

They were highly liquid and robust as customers can easily redeem their savings and investments.


Profit                                    GHS24.6mGHS64.9m
Interest incomeGHS359.9m GHS352.9m
Trading incomeGHS26.9mGHS44.3m
Customer depositsGHS7.9bn  GHS5.4bn
NPLs0.06%   0.0%
CAR19.80%    30.04%

                                                CAL Bank


Profit                                    GHS 136m GHS142m
Interest incomeGHS 394m   GHS 373m
Fees and CommissionsGHS15.6mGHS23.5m
Customer depositsGHS4.1bn GHS3.8bn
CAR20.8%    18%

                                                Societe Generale


Profit                                    GHS93mGHS82m
Interest incomeGHS369mGHS321m
Fees and CommissionsGHS51mGHS49.2m
Customer depositsGHS3.4bnGHS2.7bn
NPLs  6.6%9.5%
CAR  17.8%16.4%