Barclays Is Most Profitable In Ghana

….latest survey reveals

The latest banking survey released by accounting Professionals PriceWaterHouse Coopers has revealed that Barclays Bank Ghana Limited is the most profitable bank in the country from the period of 2002-2006, recording an average of 6.1% in terms of Return over Assets, 55% with respect to Profit before Tax and 36% in Profit After tax.

Barclays Bank Ghana, currently the third largest bank in the country in terms of assets, topped the profitability table, with Merchant Bank Ghana, The Trust Bank and Stanbic Bank all making profitable gains. BPI bank, formerly Metropolitan and Allied Bank, recorded the least in terms of profitability over the survey period, moving down 12 places in Return on Assets.

The survey indicated that there was a general drop in net interest margin in the banking industry, falling from 10.8% in 2002 to 10% in 2006.

Key reasons for the drop in the industry profitability include the fact that some events over the survey period have generated competitive activity, which has caused banks to reduce their lending rates.

Ghana Commercial Bank leads the pack as the largest in terms of assets recording an amount of 7, 420, 496 million cedis, followed by Standard Chartered Bank, Barclays, Agric Development Bank and Ecobank Ghana. The rest are SG-SSB, Merchant Bank, National Investment Bank, Cal Bank and Prudential Bank.

Of the 20 banks which took part in the survey, BPI is the least in terms of assets. Ghana Commercial Bank, Standard Chartered Bank, Barclays Bank Ghana, Agricultural Development Bank and Ecobank Ghana have been grouped in the first tier, while SG-SSB, Merchant Bank Ghana , NIB, CAL and Prudential Bank are in the second tier.

TTB, First Atlantic, HFC, Stanbic and International Commercial bank are in the third tier with Amal Bank, Unibank Ghana, Metro Allied Bank, Zenith Bank and Guaranty Trust Bank completing the list in the fourth tier.