The banking sector’s performance “continued to improve,” with assets growing at 38.7 per cent at the end of August 2024, Bank of Ghana Governor Ernest Addison has said.

This is compared to 19.6 per cent in August 2023.

Both pre-tax and after-tax profits were higher in the first eight months of 2024 relative to the same period last year, Dr Addison told journalists on Friday, 27 September 2024 when the Monetary Policy Committee briefed them on the decision to cut the policy rate from 29 per cent to 27 per cent.

On solvency, Dr Addison said the capital adequacy ratio (CAR) of the industry stood at 10.3 per cent in August 2024, higher than the 7.5 per cent recorded in August 2023.

With reliefs, Dr Addison said CAR was 13.8 per cent in August 2024, compared to 14.2 per cent in August 2023.

Liquidity and efficiency ratios, he added, also improved during the first eight months of the year, “highlighting that broadly, key financial soundness indicators are improving in the banking sector and remaining positive.”

Despite these improvements, Dr Addison said the non-performing loan (NPL) ratio was 24.3 per cent in August 2024, up from 20.0 per cent in August 2023.

Dr Addison said it reflects increased defaults from large borrowers and highlights that elevated credit risk remains the primary concern for the sector’s outlook.