Ghanaian banks report strong profits despite slow growth rate first half of 2024

The Bank of Ghana (BoG) has disclosed that the banking industry remained profitable for the first half of 2024.

The BoG, in its monetary policy report for the month of July, said the banks recorded higher profit-before-tax (PBT) and profit-after-tax (PAT) in June 2024 relative to the same period last year.

However, the growth rate in profit moderated to 25.5 percent in June 2024 relative to 51.4 per cent in the recent same period last year, BoG said. 

The Bank said generally all income lines of the banking sector increased but at a lower growth rate in June 2024 relative to the same period last year.

The bank said net interest income grew by 19.4 per cent to GH¢11.8 billion, lower than the corresponding period’s growth of 41.4 per cent in 2023.

In year-on-year terms, the bank said interest income increased to GH¢18.0 billion from GH¢15.1 billion, representing a growth of 19.1 percent relative to 44.3 per cent in June 2023.

The bank attributed the lower growth in interest income to relatively lower rates on money market instruments this year compared to the first half of 2023, as well as a decline in lending rates.

It said interest expenses also rose to GH¢6.2 billion in June 2024, representing a lower growth rate of 18.6 percent compared to the 50.0 percent recorded in June 2023.