The banking sector in Ghana has demonstrated its resilience with a significant profit-before-tax increase of 51.2 percent in June 2023 compared to the same period a year ago. This remarkable performance follows improvements in prudential data and strategic shifts by banks.
Dr. Ernest Addison, the Governor of the Bank of Ghana (BoG), reported that despite some declines in key financial soundness indicators, the banking sector managed to achieve a robust profit-before-tax figure for the first half of 2023.
This achievement can be attributed to a consensus among industry stakeholders on loss treatment and the timely implementation of temporary prudential and regulatory reliefs by the BoG.
Additionally, he stated that there was a notable shift in banks’ portfolio strategies, with an emphasis on short-term investments and gradual growth in new loans, further contributing to the sector’s improved financial performance.
“Overall, the banking sector’s performance improved in the first half of 2023. For the rest of the year, the banking sector is expected to remain broadly stable, supported by regulatory reliefs and sustained growth in profitability. Also, banks have been advised to submit capital restoration plans to recapitalize progressively over a three-year period.