Banking sector profit up 32% in June
The banking sector recorded strong profitability in the first half of 2025, with profit-after-tax rising by 32.6 per cent to GHS7.2 billion in June, according to the Bank of Ghana’s July 2025 Monetary Policy Report.
This outturn compares with a growth of 25.5 per cent in June 2024, reflecting broad-based improvements across income streams.
Profit before tax also surged by 32.2 per cent, reaching GHS10.8 billion in June 2025, up from GHS8.1 billion a year earlier.
The central bank attributed the improved performance largely to increases in net interest income, fees and commissions, as well as other income lines relative to the same period last year.
Net Interest Income
Net interest income rose by 20.2 per cent to GHS14.2 billion in June 2025, marginally higher than the 19.4 per cent growth recorded in June 2024.
Interest income grew to GHS21.6 billion, representing 20.4 per cent growth compared with GHS18.0 billion (19.1 per cent growth) in June 2024.
The report explained that the higher growth was influenced by elevated rates on money market instruments during the first half of 2025 as well as stronger lending rates.
Interest expenses also increased, climbing to GHS7.5 billion in June 2025, marking a 20.7 per cent growth compared to 18.6 per cent in the corresponding period last year.
Fees, Commissions and Other Income
Net fees and commissions posted a year-on-year growth of 17.8 per cent, up from 16.8 per cent in June 2024.
Other income recorded a significant rebound, surging by 52.2 per cent to GHS3.6 billion, compared with GHS2.4 billion, which represented a contraction of 16.2 per cent a year earlier.
These combined developments pushed the industry’s operating income to GHS20.9 billion in June 2025, up from GHS16.8 billion in June 2024, representing a growth of 24.4 per cent compared with 12.3 per cent in the prior year.
Gross income also expanded strongly to GHS28.3 billion, reflecting 23.4 per cent growth, compared with GH¢23.0 billion (14.0 per cent growth) in June 2024.
Cost Lines
On the expenditure side, operating costs grew by 21.4 per cent in June 2025, up from 15.5 per cent a year earlier. The increase was attributed mainly to higher staff costs and other administrative expenses.
However, impairment losses on financial assets, including provisions for bad debt and depreciation, contracted by 14.8 per cent, a moderation from the 39.5 per cent contraction recorded in June 2024.
The Bank of Ghana concluded that the sector’s strong profitability underscores resilience, even amid tighter credit conditions and macroeconomic adjustments.
