Investments remained the largest component of total assets as of June 30, 2022, recording ¢81.1 billion.
However, annual growth in investments moderated to 7.1% percent in June 2022, from 28.8% in June 2021 on account of a contraction in short-term bills and moderation in growth in long-term securities over the review period.
According to the July 2022 Banking Sector Development Report, the banking sector’s total assets increased by 22.8% to ¢200.0 billion at the end of June 2022, higher than the growth of 17.2% recorded in the previous year.
The domestic component of total assets recorded a higher growth rate of 23.5% in June 2022, compared to a growth of 18.0% in June 2021, while foreign assets grew by 12.2%, relative to a growth of 6.7% during the same comparative period.
Share of banks investments
Securities (long-term debt instruments), according to the Central Bank, constituted the largest component of banks’ investment portfolios as at end-June 2022.
The share of securities increased further to 80.0% in June 2022 from 72.6% in June 2021.
The share of short-term bills in total investments, however, declined to 19.7 percent from 27.1% following the contraction in short-term bills this year.
The share of bills may, however, increase as banks move to the shorter end of the market to take advantage of the increasing yields in that segment of the market.
The share of equity investments remained insignificant at 0.3%.
Deposits remain large source of funding for banks
Deposits remained the major source of funding for the banking sector, although its share in total liabilities moderated during the review period.
The share of deposits declined from 67.7% in June 2021 to 65.7% at end-June 2022, following the slowdown in deposits growth.
The share of borrowings, on the other hand, increased from 10.5% to 13.2%, reflecting the increase in the industry’s borrowing during the reference period.
The shareholders’ funds component declined marginally to 13.1% in June 2022 from 14.0% in June 2021, while the share of other liabilities increased to 8.0%, from 7.8% over the same comparative period.
Latest Stories
-
Ghanaians need honesty on the part of the government – Alhassan Suhuyini
11 mins -
We cannot compete; we need to collaborate – George Quaye on projecting theatre
24 mins -
GRIDCo to receive 100MW power supply from IPPs in coming days
31 mins -
How technology is weaving African markets into the global fabric
34 mins -
Dr. Ekua Ekumah highlights how to cultivate new theatre audience
45 mins -
Zambian FA president charged with money laundering
1 hour -
Mysstel releases video for ‘Paradise’
1 hour -
We are yet to receive an apology from Ashanti Regional Minister – ECG
1 hour -
UEFA International Tournament: Ernest Ofori scores for Black Starlets in defeat to Russia
1 hour -
Cocoa price surge linked to production decline – COCOBOD CEO
1 hour -
Atarah Praise returns on May 19 at Adenta Barrier
1 hour -
World Robotics Championship: 18 pre-tertiary students poised to win medals for Ghana at global competition
1 hour -
Drowned widow was scammed out of $1.5m on dating app hoax, left note about secret ‘double life’
2 hours -
ECG workers threaten to disconnect power from Ashanti Regional Minister’s home
2 hours -
Brain tumour shatters 20-year-old’s dream of becoming a doctor
2 hours