By: Prof. Samuel Lartey
When the Numbers Rise but the People Struggle
In an economy still adjusting to the aftershocks of debt restructuring, currency instability, and persistent inflation, Ghana’s banking sector is telling a story that is both impressive and troubling. On Wednesday, March 25, 2026, GCB Bank PLC announced a record Profit Before Tax of GH¢3.17 billion for the 2025 financial year, reflecting a strong 67.4 per cent year-on-year increase.
At face value, this performance signals resilience, strategic clarity, and effective execution. Yet, beneath the headline figures lies a deeper contradiction. While banks are posting historic gains, many businesses and households remain financially constrained, increasingly cautious, and in some cases, disconnected from formal banking support. This raises a fundamental question. Who is truly benefiting from the expansion of Ghana’s banking industry?
Understanding the Drivers of Bank Profitability
The performance of GCB Bank mirrors a broader trend across the industry. Customer deposits rose by 19.7 percent to GH¢41.3 billion, while total assets expanded by 23 percent to GH¢52.6 billion. The bank’s capital adequacy ratio stood at 18.0 percent, well above the regulatory threshold set by the Bank of Ghana.
Several key forces explain this surge in profitability.
First is the high-interest-rate environment. Monetary tightening between 2023 and 2025 pushed lending rates upward, enabling banks to expand their interest margins significantly.
Second is the continued reliance on government securities. Even after the Domestic Debt Exchange Programme, banks maintained substantial exposure to public debt instruments, which, despite restructuring, still offered relatively predictable returns compared to private sector lending.
Third is the growth in fees and commissions. Digital banking channels, transaction charges, and service fees have become reliable income streams, allowing banks to earn more from customer activity regardless of credit expansion.
Finally, operational efficiency has improved. Through technology adoption and streamlined operations, banks have reduced costs and enhanced productivity, making profitability less dependent on traditional branch networks.
The Customer Experience: Pressure and Disengagement
While banks celebrate strong financial results, customers face a very different reality.
Small and medium enterprises continue to struggle with borrowing costs that often exceed 30 percent, making expansion difficult and, in many cases, unviable. For households, the situation is equally challenging. Inflation, which surged beyond 50 percent in 2022 and remains elevated compared to historical averages, continues to erode purchasing power and diminish the real value of savings.
The impact of the Domestic Debt Exchange Programme has also left a lasting imprint on trust. Pension funds, institutional investors, and individual bondholders absorbed losses and accepted extended maturities with reduced returns. This experience has reshaped attitudes toward long term financial instruments and increased caution across the market.
As a result, a quiet shift is taking place. Some customers are stepping back from traditional banking relationships. Others are exploring alternatives such as informal financing arrangements, fintech solutions, or internal funding within business networks.
Profit Without Inclusion: A System Under Strain
The widening gap between bank profitability and customer wellbeing reflects a deeper structural tension.
Banks are inherently risk conscious institutions. In uncertain economic conditions, they tend to prioritise safety by investing in government securities and lending to well established corporate clients. While this approach protects balance sheets, it can also limit access to credit for the broader economy.
This pattern is not unique to Ghana. Following the COVID-19 pandemic, central banks such as the Federal Reserve raised interest rates to combat inflation. In response, banks globally reported strong profits driven by wider interest margins, but lending conditions tightened, particularly for smaller businesses.
In Ghana, the challenge is amplified by currency depreciation, fiscal adjustments under IMF supported programmes, and lingering concerns about sovereign risk. Banks are strong, but cautious. Customers need financing, but are increasingly viewed as higher risk.
The GCB Story: Strong Leadership, Bigger Questions
Under the leadership of Managing Director Farihan Alhassan, GCB Bank has demonstrated strategic discipline and operational strength. Growth in deposits, expansion of the balance sheet, and solid capital buffers all point to effective management.
However, success in banking cannot be measured by financial metrics alone. The more pressing question is whether banks are enabling their customers to grow, thrive, and withstand economic shocks.
True sustainability in banking requires alignment between institutional performance and customer prosperity. It demands a commitment to supporting businesses during downturns, creating accessible financial products, and rebuilding confidence in the system.
Bridging the Divide: The Way Forward
Addressing this imbalance calls for deliberate and forward looking action.
Banks must adopt more inclusive approaches to risk assessment, allowing viable small businesses to access credit at more reasonable rates.
They must deepen financial innovation by leveraging digital tools, data analytics, and alternative credit models to serve underserved segments without significantly increasing exposure.
Rebuilding trust is essential. Transparent communication, stronger investor protections, and consistent policy signals will be critical in restoring confidence after the debt exchange experience.
Equally important is a shift toward genuine customer partnership. Banks must move beyond transactional relationships and recognise that long term profitability is closely tied to the success of their clients.
Conclusion
Ghana’s banking sector in 2025 and 2026 presents a study in contrasts. On one hand, there are record profits, strong capital positions, and improved efficiency. On the other, there are struggling businesses, cautious households, and a gradual erosion of trust.
GCB Bank PLC and its peers have proven their ability to navigate a complex and uncertain environment. The next challenge is to ensure that their success translates into broader economic inclusion.
Ultimately, the strength of any banking system is not defined solely by the profits it generates, but by the prosperity it enables. Until customers begin to thrive alongside their banks, the story of success will remain incomplete.
