According to the latest 2010 Banking Survey, which was conducted by accounting professionals, PricewaterhouseCoopers, Ghana Commercial Bank (GCB) and Barclays Bank, control 25.1 percent of the market share. Though the two banks lost 4.3 percent share of their market, they maintained that the financial intermediaries control most businesses in the banking industry. While GCB controls 14.3 percent of the market, Barclays’ share of the market is 10.8 percent. Standard Chartered Bank Ghana, Ecobank Ghana, Agriculture Development Bank (ADB), Stanbic Bank and Merchant Bank control 10.5 percent, 10.1 percent, 5.5 percent, 5.3 percent and 5.2 percent respectively. Apart from ADB, these banks, which are in tier one, were big gainers in the industry. In all, the seven banks control 61.7 percent of the market share. The survey, which covered the 2009 financial year, involved 25 banks except the National Investment Bank (NIB), which did not take part in the 2008 survey for reasons which are not yet known by the organizers. The survey saw significant changes in the various tiers also known as quartiles, as it largely reflected the long standing intense industry competition. HFC and First Atlantic Merchant Bank Limited lost almost 50 percent of their market share and slipped from tier two in 2008 to tier 3 and 4 respectively in 2009. Despite contributing less than 4 percent of the industry’s total assets, uniBank Ghana Limited, International Commercial Bank and UT Bank grew rapidly and doubled their operating assets during the year. Total operating assets of the six banks in tier one increased by 65 percent from GH¢4.3billion in 2007 to GH¢7.1billion in 2009. Merchant Bank joined the group after its exit in 2008, while ADB fell two positions in the ranking and joined tier two. Ecobank Ghana and Stanbic Bank increased their share of industry deposits, while Stanchart, Barclays and GCB’s share of deposits declined. CAL, Intercontinental Ghana Bank and Fidelity moved up to tier two from tier three in 2008. ADB, Zenith Bank Ghana, SG SSB are the other members in the tier. Total operating assets however doubled from GH¢1.4billion in 2007 to GH¢2.9billion in 2009. Zenith holds the largest share of industry deposits in the group, while ADB holds the largest share of net advances. Guaranty Trust Bank and UBA Ghana moved from tier three to tier four. The other members of tier four include AmalBank, HFC, The Trust Bank and Prudential Bank Ghana. Operating assets in this quartile doubled from about GH¢0.9billion in 2007 to GH¢1.7billion in 2009. Amal and Prudential hold the highest share of industry deposits and advances respectively. The banks in tier four are First Atlantic Merchant, International Commercial Bank, uniBank, UT Bank, Access Bank Ghana, Sahel Sahara Bank and Bank of Baroda. The group’s operating assets grew from GH¢0.5billion in 2007 to GH¢0.8 billion in 2009. Meanwhile, new entrant, Bank of Baroda of India was the most profitable bank in 2009 as it dislodged Ecobank Ghana. Baroda had limited exposure to loans and advances in 2009 and did not experience the high impairment in the industry. Over the period, the industry profit before tax declined from 30.4 percent in 2007 to19.7 percent in 2009. Although total income almost doubled over the period, the rapid deterioration of the industry’s loan portfolio adversely impacted profit margins. The 11 percent growth in the industry’s gross loan book was the lowest in the last years. The survey was a joint collaboration between PricewaterhouseCoopers and the Ghana Association of Bankers. It aims to provide general information on Ghana’s formal banking sector and the performance of banks operating in the country for the period between 2007 and 2009. Source: Charles Nixon Yeboah/Business Guide