Banking Sector Assets Jump GHS13.2bn

By Praisebell Rosemond Larbi

Ghana’s banking sector ended 2025 on a stronger footing, recording a sharp expansion in its aggregate balance sheet as total assets rose by GHS13.2 billion month-on-month in December, following solid gains in November, according to the Bank of Ghana’s Summary of Macroeconomic and Financial Data.

The data show that total banking sector assets increased from GHS433.7 billion in November 2025 to GHS446.9 billion by end-December, marking the largest monthly asset expansion in the final quarter of the year. This December surge came on the back of an earlier increase of GHS10.4 billion between October and November, bringing total asset growth over the two-month period to GHS23.6 billion.

The late-year rebound is particularly significant given the weakness recorded in October 2025, when the banking sector experienced a broad-based slowdown. In that month, total assets declined from GHS428.6 billion in September to GHS423.3 billion, while total deposits fell sharply from GHS309.8 billion to GHS302.0 billion. Credit growth also stalled, with total advances remaining flat at GHS103.1 billion, reflecting temporary liquidity pressures and heightened risk aversion among banks.

The October dip underscored the cautious stance adopted by banks amid tight financial conditions, elevated funding costs and ongoing adjustments following macroeconomic stabilisation measures. However, this weakness proved short-lived, as liquidity conditions improved markedly in November.

Between October and November 2025, total assets rebounded by GHS10.4 billion to GHS433.7 billion, supported by a recovery in total deposits to GHS308.7 billion and a notable increase in advances to GHS110.2 billion. The momentum strengthened further in December, with banks recording an even larger asset expansion.

In December alone, total assets jumped by GHS13.2 billion, while deposits surged by GHS16.6 billion to GHS325.3 billion, providing a strong funding base for balance sheet growth. Over the same period, total advances edged up only marginally from GHS110.2 billion to GHS111.0 billion, indicating that the asset expansion was not driven by aggressive private sector lending.

Instead, analysts say the December surge largely reflects increased holdings of non-loan assets, including government securities and other liquid instruments, as banks positioned conservatively ahead of year-end. This pattern suggests a preference for liquidity and balance sheet strengthening rather than risk-taking, despite improving macroeconomic conditions.

The strong deposit inflows point to renewed confidence among depositors, improved cash flows across the economy, and seasonal effects linked to end-of-year transactions. The sharp rise in deposits also highlights the banking system’s ability to mobilise funding even as credit growth remains restrained.

Overall, the robust November–December performance, following October’s temporary setback, indicates that banks closed 2025 with larger, more liquid and better-positioned balance sheets. While private sector credit expansion remains cautious, the improved liquidity profile could provide a stronger foundation for lending growth in 2026, particularly if declining inflation and easing monetary conditions translate into lower borrowing costs and reduced credit risk.

For now, the data suggest that the banking sector is prioritising stability, liquidity and balance sheet resilience as it enters the new year.