Banks shareholders funds soar 48% mid-year
Shareholders’ funds in the country’s banking sector soared to GHS48.0 billion in the first half of 2025, marking a 48.5 per cent year-on-year increase, according to the Bank of Ghana’s July 2025 Banking Sector Development Report.
The rise marks a strong rebound in the industry’s capital position compared to the 44.9 per cent growth recorded during the same period in 2024.
The report attributes this impressive performance to improved profitability across the banking sector and recapitalisation efforts by institutions that were previously undercapitalised. The stronger capital base reflects banks’ growing resilience after years of balance sheet pressures from the Domestic Debt Exchange (DDE) and broader macroeconomic headwinds.
Investment Trends
The report shows that bills (short-term debt instruments) have become the dominant component of banks’ investment portfolios.
Their share of total investments jumped from 39.9 per cent in June 2024 to 60.3 per cent in June 2025, as banks shifted focus towards shorter-term securities with relatively higher yields and lower risks.
In contrast, the share of long-term securities in total investments fell sharply from 59.8 per cent to 39.4 per cent over the same period, reflecting cautious investor sentiment amid lingering market uncertainties. Equity investments, meanwhile, remained negligible and unchanged at 0.3 per cent.
Asset and Liability Structure
The asset structure of the banking industry as of June 2025 indicated a clear preference for investment assets. Investments including bills, securities and equities replaced cash and bank balances as the largest component of total assets.
The share of investments rose to 42.3 per cent from 33.2 per cent in June 2024, underscoring a strategic rebalancing towards higher-yielding opportunities.
Cash and bank balances, though still significant, dropped to 28.9 per cent of total assets, down from 35.8 per cent a year earlier. Combined, investments and cash holdings accounted for 71.2 per cent of total assets, up from 69.0 per cent in June 2024.
Net loans and advances made up the third-largest portion of assets, though their share declined from 21.4 per cent to 19.0 per cent, as banks maintained a cautious lending stance amid evolving credit risks.
Non-earning assets, including fixed and other assets, saw a slight increase to 9.9 per cent from 9.6 per cent during the review period.
Liabilities and Funding
On the liabilities side, customer deposits remained the primary funding source but declined to 72.9 per cent of total liabilities and shareholders’ funds, compared to 76.1 per cent in June 2024.
This reduction suggests some diversification in funding sources and possibly increased competition for deposits.
At the same time, the share of borrowings increased to 8.6 per cent from 7.2 per cent, indicating higher reliance on wholesale funding and interbank borrowing to support balance sheet growth.
