Ghana’s banking sector witnessed significant growth in 2024, with total assets expanding by 38.7% year-on-year to GHS 339.3 billion by the end of August, according to the Bank of Ghana’s 120th Monetary Policy Committee statement.
This development marks a sharp increase from the 19.6% asset growth recorded in August 2023, when the sector’s total assets stood at GHS 244.7 billion.
Profitability in the sector also surged during the first eight months of 2024, with both pre-tax and after-tax profits rising, demonstrating the banking industry’s resilience amid the country’s ongoing economic recovery. The Capital Adequacy Ratio (CAR) improved to 10.3% in August 2024, up from 7.5% the previous year. Under regulatory relief measures, the CAR stood at 13.8%, slightly below the 14.2% recorded in August 2023.
Key financial indicators such as liquidity and efficiency ratios showed further improvement, pointing to strengthened financial stability across the sector.
However, the Non-Performing Loan (NPL) ratio increased to 24.3% in August 2024, compared to 20.0% a year earlier, reflecting rising defaults, particularly from large corporate borrowers.
The growth in assets, coupled with higher profitability, highlights strong banking activity and improved operational efficiency. The expanding balance sheets, driven by increased lending and investments, underscore the sector’s critical role in supporting Ghana’s economic growth trajectory.
Despite challenges, the banking sector remains well-positioned to contribute to the country’s financial stability and economic development.
