The Ghana Export-Import Bank (GEXIM Bank) significantly strengthened its capacity to withstand potential financial losses in 2025, with its capital adequacy ratio increasing to 75.3 per cent.

According to the 2025 State Ownership Report by the State Interests and Governance Authority (SIGA), the ratio rose by 21.6 percentage points to 53.7 per cent in 2024.

The report said the bank’s capital adequacy ratio remained substantially above the regulatory minimum, providing a considerable financial buffer against potential losses.

The improved ratio also gives GEXIM Bank greater capacity to expand financing for export-oriented businesses and other sectors considered critical to Ghana’s economic transformation.

Capital adequacy measures a financial institution’s capital relative to its risk-weighted assets and exposures. A higher ratio generally indicates a stronger capacity to absorb unexpected losses while continuing to meet financial obligations.

The improvement was supported by significant growth in the bank’s shareholders’ funds, which increased by 28.63 per cent from GH¢1.63 billion in 2024 to GH¢2.10 billion in 2025.

The expansion in shareholders’ funds was driven largely by retained earnings and statutory reserves.

GEXIM Bank’s total debt and liabilities, meanwhile, declined by about 45 per cent from GH¢689.62 million in 2024 to GH¢378.01 million in 2025.

The reduction strengthened the institution’s financial structure and lowered its dependence on debt financing.

Its equity multiplier—a measure of financial leverage—also improved, declining from 1.4 times in 2024 to 1.2 times in 2025. The movement suggests that a greater proportion of the bank’s assets was financed through shareholders’ equity rather than debt.

The stronger capital position was recorded alongside growth in the bank’s financing activities. Loans and advances to customers increased by 20.14 per cent from GH¢1.30 billion to GH¢1.56 billion during the year.

Total assets also grew by 6.72 per cent from GH¢2.32 billion in 2024 to GH¢2.48 billion in 2025, while earning assets increased from GH¢1.67 billion to GH¢1.89 billion.

Despite the expansion in lending, the bank maintained adequate liquidity and recorded improvements in some credit-risk indicators.

Impairment charges on financial assets fell by 32.11 per cent from GH¢26.75 million to GH¢18.16 million, while the impairment-loss-to-loans ratio improved from 18.2 per cent to 17.3 per cent.

However, credit-impaired Stage 3 exposures increased from GH¢147.65 million to GH¢170 million, indicating continuing financial difficulties among some borrowers.

GEXIM Bank posted a profit before tax of GH¢467.56 million in 2025. Although this was lower than the GH¢547.17 million recorded in 2024, the report described the institution’s profitability as robust.

According to the report, GEXIM Bank’s stronger capital base, reduced leverage and sustained profitability have reinforced its long-term financial resilience and enhanced its ability to deliver on its development-finance mandate.

Established under the Ghana Export-Import Bank Act, 2016 (Act 911), the bank is mandated to finance trade, develop export-oriented businesses and support Ghana’s transition towards an export-led economy.