Ghana’s Banking Industry Records 18% Profit Growth In First Two Months
Ghana’s Banking Industry has started the year with something positive to cheer about in the face of trying economic times. The sector recorded an 18.18% growth in profit in the first two months of 2022 to ¢1.3 billion.
The Central Bank in its summary of financial and Economic Data for 2022 said trends in the financial soundness indicators remained positive, underpinned by strong solvency, liquidity, and profitability.
Net interest income grew by 10.3% to ¢2.2 billion. This is compared to 10.9% the same period a year ago.
Net fees and commissions also went up by 11.8% to ¢486 million, lower than the growth of 13.7% registered during the same period last year.
Other income of the banks stood at ¢383.2 million, representing 95.5% growth, compared with a contraction of 16.5% in the same period last year.
According to the Bank of Ghana, these developments resulted in a 16.9% growth in operating income to ¢3.1 billion.
However, operating expenses went up by 21.3% on account of higher administrative costs and emoluments, relative to a contraction of 0.3% in the same period last year.
In terms of the financial soundness indicators, the Capital Adequacy Ratio of the Industry was 19.6% at end-February 2022, well above the current 11.5% regulatory minimum threshold.
Core liquid assets to short-term liabilities were 24.2% in February 2022, compared with 26.5% in the previous year.