Banks’s performance points to continued recovery from impact of DDEP – Addison
The banking sector’s performance in the first half of the year points to continued recovery from the impact of the Domestic Debt Exchange Programme, Governor of the Bank of Ghana (BoG) Dr Ernest Addison, has said.
He indicated that total banking sector assets grew by 33.3 percent to GH¢323.1 billion at end-June 2024, relative to 21.2 percent growth at end-June 2023. Profitability, liquidity, and efficiency indicators also improved over the period.
The Capital Adequacy Ratio (CAR) adjusted for reliefs remained unchanged at 14.3 percent, between June 2023 and June 2024, he said.
Without reliefs, he added, the CAR was reported at 10.6 percent in June 2024, higher than the 7.4 percent recorded in June 2023.
“Despite improvements in the banking sector’s performance, elevated credit risk poses a threat to the sector’s recovery process,” he noted.
The industry’s Nonperforming loans (NPL) ratio was 24.1 percent in June 2024, up from 18.7 percent in June 2023.
“The consistent rebound in profits, adherence to recapitalisation plans, and enforcement of strict credit underwriting standards will help ensure that banks remain on the path to full recovery and resilience,” Dr Adison said during the 119th onetray Policy Committee Press conference in Accra today Friday July 26.
