The Ghana Export-Import Bank (GEXIM Bank) strengthened its financial position in 2025, recording substantial growth in interest income, net interest income, loans to businesses, total assets and shareholders’ equity.

According to the 2025 State Ownership Report, the state-owned development finance institution increased its loans and advances to customers by 20.14 per cent, from GH¢1.30 billion in 2024 to GH¢1.56 billion in 2025.

The expansion reflected increased financing for export-oriented businesses and other strategic sectors of the Ghanaian economy.

Loans to customers as a proportion of the bank’s total assets also increased from 55.9 per cent in 2024 to 63 per cent in 2025, demonstrating a stronger allocation of resources to its core development-finance mandate.

The report said the bank maintained adequate liquidity, improved credit quality and expanded its financing operations during the year.

Interest income rises 90%

GEXIM Bank’s interest income increased by 90.21 per cent, from GH¢80.91 million in 2024 to GH¢153.90 million in 2025.

The report attributed the growth mainly to higher interest earned on loans and financial placements.

Funding costs, meanwhile, fell sharply by 99.08 per cent, from GH¢26.99 million to GH¢250,000.

The combination of higher interest income and lower funding costs resulted in a 184.98 per cent increase in net interest income, which rose to GH¢153.65 million in 2025.

The bank generated total operating revenue of GH¢898.04 million, supported by substantial non-exchange revenue, despite lower fees and commission income and a net trading loss during the year.

GEXIM Bank posted a profit before tax of GH¢467.56 million in 2025. Its net profit for the year also stood at GH¢467.56 million, compared with GH¢547.17 million in 2024.

Although the figure represented a decline from the exceptionally high profit recorded in 2024, the report described the bank’s profitability as robust.

Assets and equity increase

GEXIM Bank’s total assets increased by 6.72 per cent, from GH¢2.32 billion in 2024 to GH¢2.48 billion in 2025, reflecting continued business growth.

Earning assets also rose from GH¢1.67 billion to GH¢1.89 billion over the period.

The bank recorded a significant improvement in its equity position, with shareholders’ funds increasing by 28.63 per cent, from GH¢1.63 billion in 2024 to GH¢2.10 billion in 2025.

The growth was driven largely by retained earnings and statutory reserves.

At the same time, the bank’s total debt and liabilities declined from GH¢689.62 million in 2024 to GH¢378.01 million in 2025, representing a reduction of about 45 per cent.

Financial leverage also improved, with the equity multiplier declining from 1.4 times to 1.2 times. This indicated that the bank was relying less on debt financing and had developed a stronger equity base.

According to the report, GEXIM Bank’s stronger capital position, reduced leverage and sustained profitability reinforced its long-term financial resilience and enhanced its capacity to fulfil its development-finance mandate.

Capital adequacy rises to 75.3%

The bank’s capital adequacy ratio increased significantly from 53.7 per cent in 2024 to 75.3 per cent in 2025.

The ratio remained substantially above the regulatory minimum, providing the institution with considerable capacity to absorb potential losses and support future lending to Ghanaian businesses.

The improvement also strengthened GEXIM Bank’s ability to undertake further interventions in export-oriented industries and other sectors considered critical to Ghana’s economic transformation.

Cash position improves

GEXIM Bank maintained a sound liquidity position during the year, supported by growth in its cash holdings and loan portfolio.

Cash and cash equivalents increased by 1.75 per cent, from GH¢230.82 million in 2024 to GH¢234.85 million in 2025.

Investment securities, however, declined by 13.08 per cent, from GH¢375.32 million to GH¢326.24 million.

The report said the reduction indicated a modification in the bank’s portfolio management strategy, involving a partial reallocation of assets from investment securities towards lending activities.

Net cash flow from operating activities stood at GH¢15.40 million, while net cash used for investment activities was GH¢11.37 million.

Credit quality strengthens

GEXIM Bank also recorded an improvement in some of its credit-risk indicators.

Impairment charges on financial assets declined by 32.11 per cent, from GH¢26.75 million in 2024 to GH¢18.16 million in 2025.

The impairment-loss-to-loans ratio improved from 18.2 per cent to 17.3 per cent, while the loan-loss ratio declined from 15.4 per cent to 14.7 per cent.

Under the International Financial Reporting Standard 9 Expected Credit Loss model, Stage 1 exposures—loans regarded as carrying low credit risk—increased from GH¢68.45 million to GH¢81.86 million. The report said this reflected growth in performing loan exposures.

Stage 2 exposures, involving loans with significantly increased credit risk, declined from GH¢20 million to GH¢17.74 million, signalling an improvement in this category.

Credit-impaired Stage 3 exposures, however, increased from GH¢147.65 million to GH¢170 million, indicating that some borrowers remained in financial distress despite the broader improvement in the bank’s impairment ratios.

Profitability moderates

Despite maintaining strong profitability, GEXIM Bank recorded declines in some profit and return indicators compared with the exceptionally high levels achieved in 2024.

Its net operating margin declined from 23.56 per cent to 18.87 per cent, while return on assets decreased from 23.56 per cent to 18.87 per cent.

Return on equity also fell from 33.51 per cent in 2024 to 22.26 per cent in 2025.

The bank’s cost-recovery ratio moderated from 229.8 per cent to 208.61 per cent, but remained strong, indicating that the institution continued to generate more than enough income to cover its operating costs.

Operating expenses increased during the year, driven partly by higher personnel costs. However, the reduction in impairment charges and strong income generation helped the bank maintain its profitability.

Established under the Ghana Export-Import Bank Act, 2016 (Act 911), GEXIM Bank is mandated to support Ghana’s transition towards an export-led economy by financing trade, developing export-oriented businesses and improving the country’s competitiveness in international markets.