Accra, Ghana//-Global InfoAnalytics Ltd FYE2022 analysis of banks in Ghana has revealed that only six out of 22 banks recorded Profit Before Tax (PBT); none of which is Ghanaian owned.
The Global InfoAnalytics which is an independent research company founded in 2019 however stated that the report excluded National Investment Bank’s (NIB’s) financial report which was not available at the time of releasing the report.
The InfoAnalytics report- Ghana Banking Sector Financial Performance Ranking released May 2023 attributed the poor performance of the banks to the dreadful Domestic Debt Exchange Programme (DDEP) introduced by the government as part of pre-conditions of the country’s $3 billion IMF bailout programme.
The report said: “The effect of the DDEP on banks was heavily felt with impairments rising to the rooftops of some banks. Nine Banks recorded impairments above GHS1bn with Absa bank, Consolidated Bank Ghana (CBG) and GCB bank recording as high as GHS2bn + each.
Of the bottom five worst-performing banks in terms of PBT, three are Ghanaian owned. The CBG recorded the worst Loss Before Tax of GHS2bn followed by Cal Bank and GCB bank recording GHS1bn and GHS0.7bn respectively”.
The other two foreign-owned are Absa and Zenith recording GHS0.56bn each in Losses Before Tax.
While Total Customer Deposit of the Top 5 ranked banks comes to GHS72bn with Ecobank leading with 27% of that total, it added.
GCB Bank, Stanbic, Absa and Fidelity Bank followed with 24%, 20%, 15% and 13% respectively. Two local banks, GCB Bank and Fidelity Bank, represented in the Top 5 rankings based on Customer Deposits and Total Assets.
However, only GCB bank made it as a Ghanaian-owned bank in the top 5 in terms of Equity. Apart from Stanbic which registered a capital adequacy ratio (CAR) of 12.30%, all foreign-owned banks recorded CAR above 13%.
Four out of eight Ghanaian-owned banks analyzed recorded CAR of 13% and above. Cal Bank however recorded 11.9% while Agricultural Development Bank (ADB) registered 7.36%; two other local banks- Universal Merchant Bank (UMB) and Consolidated Bank Ghana reported negative CAR of -0.21% and -4.5% respectively.
In terms of the Non-Performing Loan Ratio, GT Bank recorded the least of 2.42% while UMB recorded the highest of 33.38%.
Global InfoAnalytics Ltd analyzed published Financial Statements of banks in Ghana for FYE 2022. The report focused on key metrics for assessing the financial health of the banks.
These are-Deposit from Customers; Loans to Customers; Loans-to-Deposits Ratio; Investment Securities; Total Assets; Equity; Profitability; Impairments; and Quantitative Regulatory Disclosures.
The report also looked at the Loan-to-Deposit ratios as well as Investment Securities-to-Deposit ratios to better situate banks’ application of customer deposits. When ranking banks on the key indicators, only the top three banks are presented. The report can be accessed here.
