Absa Bank Ghana has emerged as the top-performing bank among Ghanaian Banks in the first quarter of 2025, posting the highest profit before tax (PBT), from a number 3 position as at the end of 2024. Absa has begun the year very strongly.
The financial results of the banking sector released for Q1 2025 reveals that Absa Bank’s PBT soared by 45%, hitting GH₵686.5 million, up from GH₵474.8 million in the same period last year. This places Absa at the top of the industry profitability in terms of Profit Before tax and on a strong growth trajectory.
GCB Bank followed with a strong performance, GH₵533 million in PBT, representing a 30% increase over its GH₵412 million recorded in Q1 2024. Ecobank Ghana, with a 4 percent growth in PBT placed third, Ecobank PBT grew from GH₵ 487 million to a modest GH₵506 million.
Absa posted also posted strong fee and commission income growth of 61 percent during the quarter under review .
Absa Bank recorded the highest loan to Deposit ratio of 40.4 percent which is indicative of its commitment to the Ghanaian business . The high loan to deposit ratio compares favorably with its non performing loan book of 15 percent . Industry NPL amounts to 21.8percent , Ecobank’s NPL is 24 percent , Stanbic 22 percent and GCB 14.9 .
The recent Fitch Solutions banking sector report titled “US tariffs increase Risk for Sub Saharan African Banks” highlighted the major vulnerabilities in the Ghanaian Banking sector as high industry NPL of 21.8 percent and relatively weak Capital Adequacy 14.05 percent. Infact, Ghana had the highest NPL ratio amongst banks in the region.
Absa’s non-performing loan of 15 percent and Capital Adequacy of 23.3 percent puts the Bank in a very healthy position. Stanbic Bank’s Capital Adequacy of 23.9 percent is also very healthy but STANBIC NPL of 22 percent is slightly higher than the high industry NPL. Amongst the top 4 Banks Ecobank has a Capital Adequacy ratio of 16.8 percent and non performing loans of 24 percent, which is higher than industry non-performing loan ratio while GCB has a Capital Adequacy of 18 percent and a non-performing loan book of 14.9 percent .
It is interesting to note that the recent Fitch Solutions report Banks across the sub-Sahara Africa are well positioned to deal with headwinds. Fitch also expects a decline in interest rates for most sub-Saharan countries in 2025 and this will spur loan growth and improve asset quality. Fitch also expects the strong profitability of SSA banks to help improve capital position of SSA Banks .
On efficiency as measured by Cost Income Ratio , Absa again is the industry leader with 38 percent and other top 4 banks are as follows ; GCB 51.6 percent , Ecobank 51.7 percent , Stanbic Bank 47.2 percent . Generally cost income ratios across the industry is on the ascendancy following high inflation levels. Inflation levels will continue to challenge the ability of Ghanaian banks to manage cost pressures.
This substantial growth in Absa profitability reinforces its strong balance sheet and strategic positioning in Ghana’s financial services sector.
The performance trend underscores Absa’s aggressive market strategy and growing customer base across both corporate and retail segments. The bank’s ability to scale up its non-interest income, coupled with prudent asset management, has bolstered its competitive advantage in a market undergoing structural reforms and digital transformation.
The Ghanaian banking sector is poised for strong growth .
GCB Bank remains a formidable player with steady earnings growth, and Ecobank maintains a wide regional network and Absa’s Q1 performance signals a clear lead in profitability and efficiency for the period under review.
A healthy banking sector bodes well for national development, hopefully the second quarter of the year will continue to show strong bank performance and even more lending to the required sectors of the economy for national development.
