The total assets of Ghana’s banking industry reached GH₵367.2 billion at the end of October 2024, reflecting an impressive year-on-year growth of 42.4%, according to the Bank of Ghana (BoG). This robust expansion comes despite the sector’s ongoing struggle with elevated levels of non-performing loans (NPLs).
The NPL ratio rose to 22.7% in October 2024, up from 18.3% a year earlier. The banking industry has grappled with high NPL levels for over two years, with efforts to bring the ratio back to the pre-Domestic Debt Exchange Programme (DDEP) figure of 14% proving elusive. Throughout 2024, the ratio has fluctuated between 22.7% and 26.7%.
The BoG attributes the rise in total assets primarily to a significant increase in customer deposits. Total deposits climbed to GH₵ 277.3 billion in October 2024, up from GH₵199.9 billion in the same period the previous year, marking a 38.7% year-on-year increase.
Loans and advances to businesses and households also contributed to the sector’s expansion. Total advances reached GH₵ 94.6 billion by October 2024, representing a 28.8% year-on-year growth compared to GH₵ 73.5 billion in October 2023.
Private sector credit recorded a notable turnaround, increasing by 28.8% in nominal terms in October 2024 compared to a contraction of 7.5% in the corresponding period of 2023.
“Growth in private sector credit increased to 28.8 percent in October 2024 from negative 7.5 percent recorded in the corresponding period of 2023. In real terms, credit to the private sector increased by 5.5 percent relative to a 31.6 percent contraction, recorded over the same comparative period,” the BoG noted.
The sustained growth in banking assets reflects resilience within Ghana’s financial system, even as high NPL levels continue to challenge profitability and credit availability. Industry observers highlight the importance of further reforms and stringent credit risk management to bolster long-term stability and maintain the momentum in asset growth.
