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The banking industry non-performing loan ratio fell 0.2 percent from June 2020 to 15.5 percent in August 2020, the latest Bank of Ghana Financial and Macroeconomic Data Summary revealed.
While some banks have recorded very low NPLs, others have recorded NPLs of more than 20%.
According to the July 2020 Banking Sector Development Report, the banking industry’s exposure to credit risk as of June 2020 showed a broad year-on-year improvement due to high loan recoveries, two-period cancellations.
However, the year-to-date assessment showed that the NPL ratio rose bit by bit due in large part to the slowdown in credit growth induced by the COVID-19 pandemic and increased provisions for bad loans arising from loan losses. payment challenges during the first half of 2020.
Other banking indicators
In some banking indicators, basic liquid assets and short-term liabilities were estimated at 29.0% in August 2020.
This sign that the industry was still very liquid. It had hovered around 29.0% on average for quite some time.
Regarding management efficiency, the cost-benefit ratio that cost management shows in relation to its income is 53.5%, higher than its minimum threshold.
The cost-income ratio gives investors a clear view of how efficiently the company is managed. The lower it is, the more profitable the bank will be.
The capital adequacy ratio (CAR) stood at 20.9%, well above the industry average of the minimum threshold of around 12%.
Total deposits amounted to GHS 91.6 billion in August 2020 to GHS 90.6 billion in July 2020.
From April 2020 to June 2020, deposits have seen strong growth, from GHS84.4 billion to GHS90 billion. This occurs despite the effect of covid-19,
However, the total of loans and advances has decreased between January and July 2020.
In January 2020, total loans amounted to GHS 46.5 billion, while in August 2020 it was estimated at GHS 45 billion. However, it has been around 44.9 billion GHS.
Semi-annual profit
Banks reported a profit of 1.9 billion GHS in the first half of 2020.
This was a growth of 15.5%, compared to the growth of 36.3% during the same period last year.
