Banks profits surges to 32% in August
By Praisebell Rosemond Larbi
The country’s banking industry has recorded a sharp rebound in profitability, underscoring the resilience and renewed strength of the financial system after years of macroeconomic turbulence.
The Bank of Ghana has disclosed that the sector’s return on equity (ROE) increased to 32.21 per cent in August 2025, compared to 31.36 per cent in the same period last year, reflecting improved efficiency, stronger capital positions, and sustained investor confidence.
Dr Johnson Asiama, Governor of the Bank of Ghana, addressing the 42nd Annual General Meeting of the Ghana Association of Banks in Accra, said the performance signals a turning point for the industry.
He noted that “the banking sector’s stability has been restored through discipline, sacrifice, and partnership.”
Dr Asiama stressed that the improvement in profitability and asset quality was the result of prudent risk management, recapitalisation, and monetary policy discipline that had collectively strengthened the financial system.
The central bank’s September 2025 banking sector report revealed that the industry’s capital adequacy ratio (CAR) stood at 18.28 per cent, nearly double the 10 per cent regulatory minimum, affirming the sector’s strong capacity to absorb shocks and sustain credit growth.
Non-performing loans (NPLs) eased to 20.77 per cent, compared to 21.7 per cent a year earlier, indicating gradual recovery in loan performance as businesses regained stability.
Deposits across the sector surged by more than 17 per cent year-on-year, supported by improved liquidity, strong remittance inflows, and increased confidence in the financial system. The Bank of Ghana attributed this to renewed business activity and a more stable macroeconomic environment.
Inflation dropped to 9.4 per cent in September 2025, the lowest in four years, down from 23.8 per cent in December 2024, a development Dr Asiama credited to tighter monetary control and coordinated fiscal policies.
The cedi appreciated by about 37 per cent year-to-date, while gross international reserves stood at USD10.7 billion, providing import cover of more than 4.5 months as of August.
Dr Asiama described these achievements as evidence of Ghana’s recovery momentum, adding that the next phase of the central bank’s strategy will focus on innovation, digital transformation, and financial inclusion to build a more efficient, technology-driven system.
He highlighted that real GDP growth reached 6.3 per cent in the second quarter of 2025, propelled by robust performances in the services and agriculture sectors, alongside renewed activity in non-oil industries.
“Stability,” the Governor said, “is not the destination but the launchpad for building a more inclusive, technology-driven financial ecosystem that supports sustainable growth and opportunity for all.”
