Ghana’s Banking Sector Profit Surges 46% in 2025, Signaling Strong Economic Recovery

Ghana’s banking sector has recorded an impressive performance in 2025, with profit-after-tax soaring by 46.1% to GH¢9.7 billion in the first eight months of the year, compared to GH¢6.7 billion during the same period in 2024. The data, published in the September 2025 Monetary Policy Report, underscores the financial industry’s resilience and improving profitability amid a gradually stabilizing economy.

The report revealed that banks posted gains across all income categories, driven by a sharp 47.3% rise in other income — a significant turnaround from the 2.9% contraction recorded a year earlier. Net interest income also grew by 21.8%, reaching GH¢19.2 billion, buoyed by lower interbank lending rates and declining interest expenses that helped strengthen margins.

On a yearly basis, total interest income climbed 21.5% to GH¢29.3 billion, while interest expenses increased 20.9% to GH¢10.2 billion, a slight moderation compared to 2024’s pace. Additionally, net fees and commissions grew 13.1%, although slower than the previous year’s 22.9%, while overall net operating income expanded by 28%, up from just 10.9% growth in 2024 — a clear indication of improving operational efficiency.

Operating expenses rose modestly by 19.5%, reflecting slightly higher staff and administrative costs. However, banks benefited from a 46% reduction in provisions for bad debts, depreciation, and impairment losses, largely due to higher recoveries and write-offs, which bolstered their balance sheets and profit margins.

Overall, the profitability indicators strengthened across the sector, with return-on-equity (ROE) improving from 31.4% to 32.2%, and return-on-assets (ROA) rising from 4.9% to 5.6% year-on-year. The Bank of Ghana’s data highlights a robust rebound for the industry, signaling renewed confidence and stronger capital positions across the nation’s financial institutions.

source: citi newsroom