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Business News Tue, 28 Apr 2020

Banks’ total assets hit GH¢128.33 billion in February – BoG

In February 2020, the banking industry’s total assets amounted to GH¢128.33 billion and this represents a year-on-year growth of 17.8 percent.

According to the Banking Sector Report for March 2020, banks recorded a stronger annual growth in total assets in February 2020 compared to same period last year.

The growth in total assets was as a result of a rebound in credit growth.

Also, gross loans and advances rose by 26.0 percent to GH¢45.91 billion in February 2020, following a subdued growth of 1.9 percent last year.

“Similarly, net loans and advances (that is, after adjusting gross loans for provisions and interest in suspense), grew by 27.2 percent to GH¢40.47 billion against a marginal pick-up of 4.8 percent in February 2019.

“The rebound in credit growth underscores the positive impact of higher capital levels and sustained deposit growth in supporting intermediation. The cedi equivalent of foreign currency loans (net) went up slightly by 6.0 percent, indicating a decline in foreign currency loans in real terms during the period under review,” the BoG report said.

The central bank indicated that Investments remain the largest component of banks’ assets but its contribution to growth in assets has waned.

Growth in investments, consisting of bills, securities, and equity slowed to 7.2 percent in February 2020 from 33.3 percent a year earlier.

The slower growth in total investments is partly a reflection of the base effects of the special (long-term) resolution bonds issued to Consolidated Bank Ghana (CBG), which increased the investment balance in February 2019.
Source: www.ghanaweb.com
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