NAME: BRIDGET AFENYO AKUA INDEX: UGW0101310057

Banks Performance (2004)

The earnings performance of banks in Ghana for the year ended December 2004 was quite high,

although lower than the 2003 position. The relatively lower earnings performance could be seen

in the decline in Return on Assets, Return on Earning Assets and Return on Equity. Loan loss

provision to total credit and Capital Adequacy ratios however, improved.

Indicator 2004 2003 2002 2001Loan loss provision to total credit

14.6 15.4 18.2 15.0

Asset QualityThe quality of loan portfolio of the banking system improved during the year. The ratio of non-

performing loans (NPL) has exhibited a significant decline from 18.3 per cent at end-December

2003 to 16.1 per cent as of end-December 2004, implying an improvement in loan quality (chart

27). The annual growth rate of provision for bad and doubtful loans fell below the growth in

advances, suggesting a moderation in loan loss probabilities associated with credit expansion.

Banks Performance (2005)

Total assets of the banks grew by 17.62 per cent to ¢36,789.99 billion which represented 89.16

per cent of the total assets of the bank and non-bank financial institutions. The main source of

growth was deposits which went up by ¢3,409.34 billion. Six banks accounted for 62.3 per cent

of the growth in assets. The increase in the asset base of the industry reflected mainly in net

loans and advances and investments which increased by ¢4,851.52 billion and ¢799.78 billion

respectively. Other sources of funds were borrowings, retained earnings, additional capital and

foreign liabilities. Contingent liabilities also went up by ¢2,413.89 billion to ¢8,197.72 billion.

Credit

Gross loans and advances went up by ¢5,122.19 billion (39.98 %) to ¢17,934.12 billion. The

pattern of distribution of credit in the banking industry changed with the Commerce & Finance

sector overtaking the Manufacturing sector. The Commerce & Finance sector held 30.04 per cent

compared with the Manufacturing sector with 17.43 per cent; followed by the Services sector

with 13.57 per cent and Miscellaneous sector with 10.07 per cent. The quality of the credit

(proportion of non-performing loans to total loans) improved from 16.13 per cent to 12.54 per

cent by end December 2005.

Banks Performance (2006)

Assets and Liabilities

Total assets of banks grew by 40.9 per cent to ¢51,837.18 billion, which represented 90.17 per

cent of the total assets of the bank and non-bank financial institutions. The Rural and

Community Banks accounted for 5.01per cent while the share of NBFIs was 4.81per cent. The

growth was funded mainly by deposits, which increased by ¢9,901.80 billion, representing

65.80 per cent of the growth in assets.

The increase in total assets of the industry reflected mainly in net loans and advances which

increased by ¢7,346.85 billion. Cash and Bank balances and investments also went up by

¢4,470.78 billion and ¢2,375.18 billion respectively (see Chart 20).

Banks Performance (2007)

Assets and Liabilities of Banks and NBFIs

Total assets of banks and NBFIs increased by 49.1 per cent to GH￠8,588.3 million. The growth

in assets was funded mainly by deposits, which increased by GH￠1,548.7 million, constituting

59.3 per cent of the growth in assets. Banks’ total assets grew by 50.4 per cent to GH￠7,795.7

million, representing 90.8 per cent of the total assets of banks and NBFIs. RCBs’ total assets

grew by 29.2 per cent to GH ￠386.2 million, representing 4.5 per cent of the total assets of

banks and NBFIs. With regard to NBFIs, total assets rose by 47.4 per cent to GH ￠ 408.0

million, representing 4.7 per cent of the total assets of banks and NBFIs.

The increase in total assets of the industry refl ected mainly in net loans and advances which

went up by GH ￠ 1,585.4 million. Cash & bank balances and investments also rose by GH

￠600.1 million and GH￠171.6 million respectively.

Banks Performance

Assets and Liabilities (2008)

Total assets of banks (including RCBs) and NBFIs increased by 37.0 per cent to GH

¢11,764.2million as at end 2008. The growth in assets was funded mainly by deposits, which

increased by GH¢2,073.8 million, constituting 65.2 per cent of the growth. Banks’ total assets

grew by 37.2 per cent to GH¢10,692.2 million, representing 90.8 per cent of the total assets of

banks and NBFIs. RCBs’ total assets grew by 19.8 per cent to GH¢463.7 million, representing

4.5 per cent of the total assets of banks and NBFIs. With regard to NBFIs, total assets rose by

49.6 per cent to GH¢608.3 million, representing 4.8 per cent of the total assets of banks and

NBFIs.

The increase in total assets of the industry reflected mainly in net loans and advances which went

up by GH¢1,848.6 million. Cash & bank balances and investments also rose by GH¢889.4

million and GH¢188.4 million respectively.

Banks Performance (2009)

Assets and Liabilities

Total assets of banks and NBFIs went up by GH¢3,837 million or 32.6 per cent to GH¢15,604.6

million as at end 2009. The growth in total assets reflected in investments (GH¢1,835.9 million),

cash and bank balances (GH¢823.5 million) and net loans and advances (GH¢752.8 million).

The growth in assets was funded primarily by deposits, which increased by GH¢2,453.1 million.

DMBs’ total assets increased by GH¢3,351.1 million or 31.3 per cent to GH¢14,043.3 million,

which represented 89.9 per cent of the total assets of banks and NBFIs.

Banks Performance (2010)

Assets and Liabilities

Total assets of banks and NBFIs increased by GH¢3,797.3 million (24.3%) to GH¢19,405.0

million. The increase in total assets of the industry reflected mainly in net loans and advances

which went up by GH¢1,011.1 million (14.5%). Investment and Cash & Bank balances rose by

GH¢1,659.8 million (43.4%) and GH¢893.3 million (26.8%) respectively. The growth in assets

was funded mainly by deposits which increased by GH¢3,166.9 million (31.8%). DMBs' total

assets of GH¢17,397.6 million constituted 89.7 per cent of total assets of banks and NBFIs

compared to 90.0 per cent in the previous year.

Banks Performance (2011)

Assets and Liabilities

Total assets of banks and NBFIs increased by 28.8 per cent (GH¢ 5,582.4 million) to GH

¢24,987.4 as at end 2011. The increase in total assets of the industry reflected mainly in net loans

and advances which went up by GH¢17, 97.9 million (22.5%). Investment and Cash & Bank

balances by GH¢20, 22.3 million (36.9%) and GH¢1,574.3 million (37.2%) respectively. Total

earning asset (Loans and Advances and Investments) constituted 69.2 per cent in the previous

year.

The growth in assets was funded mainly by deposits which increased by GH¢4,768.6 million

(336.7%). DMBs' total assets of GH¢22,059.1 million constituted 88.3 per cent of total assets of

banks and NBFIs compared to 89.7 per cent in the previous year.

Banks Performance (2012)

Assets and Liabilities

Total assets of banks (DMBs and RCBs) and NBFIs increased by 26.3 per cent to GH¢31,447.7

million as at end-December 2012.

The increase in the total assets reflected mainly in Loans & Advances and Investments which

went up by 41.8 per cent and 25.5 per cent to GH¢13,788.4 million and GH¢8,242.3 million

respectively. Total earning assets (Loans & Advances and Investments) constituted 70.1 per cent

of total assets compared with 69.2 per cent in the previous year.

The increase in assets was funded mainly from Deposits which went up by 25.1 per cent to GH

¢22,153.9 million. Total assets of banks was GH¢28,761.4 million and constituted 91.5 per cent

of total assets of banks and NBFIs compared with 88.3 per cent in the previous year.

Banks Performance (2013)

Assets and Liabilities

Total assets of banks (DMBs and RCBs), and NBFIs grew by 35.2 per cent to GH¢42,523.2

million at end-December 2013. The growth in total assets reflected mainly in Loans & Advances

and Investments which increased by 35.2 per cent and 47.2 per cent to GH¢18,639.3 million and

GH¢12,135.5 million respectively. The ratio of total earning assets (loans & advances and

investments) to total assets was 72.3 per cent compared to 70.1 per cent in 2012.

The expansion in total assets was funded from Deposits, Borrowings and Shareholders’ funds

which increased by 21.8 per cent, 98.3 per cent and 36.0 per cent to GH¢26,992.4 million, GH

¢9,200.8 million and GH¢6,329.9 million respectively. The share of total asset funded from

Deposits declined from 70.4 per cent in 2012 to 63.5 per cent in 2013.

Out of the total assets of banks and NBFIs, banks accounted for 89.4 per cent compared with

91.5 per cent in 2012.

Reference

WWW.BOG.gov.gh, 2014. Retrieved October 1, 2014.