Ghana’s banking sector showcased remarkable resilience in 2024, recording significant growth in assets, improved capitalization, and sustained profitability, according to the Governor of the Bank of Ghana (BoG), Dr. Ernest Addison.
At the 122nd Monetary Policy Committee (MPC) press briefing on January 27, Dr. Addison stressed the sector’s robust performance, attributed to an improving macroeconomic environment.
The total assets of banks surged by 33.8%, underscoring the sector’s expansion. Additionally, the Capital Adequacy Ratio (CAR) improved, rising to 14.0% with regulatory reliefs as of December 2024, compared to 13.9% the previous year. Without regulatory reliefs, the CAR witnessed a significant jump from 8.3% in December 2023 to 11.3% in December 2024, signaling stronger capitalization.
Profitability trends were also positive, though the growth rate moderated compared to prior years. Elevated credit risks, however, remain a pressing challenge, with the Non-Performing Loans (NPL) ratio increasing to 21.8% in December 2024, up from 20.6% in 2023.
“The resilience of the banking sector in 2024 was underpinned by improved domestic macroeconomic conditions,” Dr. Addison remarked.
Furthermore, he emphasized that sustaining stability will require heightened vigilance and robust credit risk management.
The Bank of Ghana reaffirmed its commitment to overseeing prudent practices to mitigate vulnerabilities and ensure the continued stability of the banking system. As the economy recovers, the sector’s strong performance lays the groundwork for further consolidation in 2025.
