Ecobank Ghana emerged as the biggest bank by total assets worth ¢25.77 billion in 2022, a Ghana Banking Industry Report 2023 by LIMA Partners has revealed.
It was followed by GCB Bank with total assets of ¢21.35 billion, Stanbic Bank with ¢18.60 billion and Absa with ¢17.10 billion.
According to the report, all the banks saw an increase in growth of total assets in 2022 in line with the general performance of the industry.
The ranking of the banks in Ghana based on total assets as of December 2022 generally revealed a mix of indigenous and non-indigenous banks dominating the top positions, demonstrating the strength and expansion of the Ghanaian banking sector.
Profits/Losses Before Tax
The report said banks like Ecobank, GCB Bank, and Stanbic Bank consistently ranked in the top 10 in previous years faced larger losses in 2022, due to factors like the Domestic Debt Exchange Programme (DDEP).
Ecobank Ghana, for example, dropped to 9th place due to increased net impairment losses on financial assets.
Similar patterns were observed in other banks such as CalBank and Consolidated Bank.
These losses highlight the impact of bad loans and investments on banks’ financial performance.
GT Bank was the most profitable in absolute terms, followed by Société Générale Ghana Limited and FBN with profits of ¢191 million, ¢168 million and ¢102 million profits before tax respectively.
Industry deposits
The report revealed that non-indigenous banks like Ecobank, Absa, Standard Chartered, Access Bank, and Zenith Bank dominate the top positions, indicating their dominance in the deposit market.
However, indigenous banks like GCB Bank, Fidelity Bank, Consolidated Bank, and CalBank also secured spots in the top 10.
Notably, banks outside the top 10 collectively held 28.6% of the industry deposits, indicating room for competition in the market.
Industry Loans And Advances
Ecobank Ghana held the highest share, followed by Stanbic Bank, Absa Bank, and GCB Bank.
Agricultural Development Bank of Ghana, CalBank, and Société Générale Ghana also feature in the top positions.
Cost to Income
FBN Bank improved its cost significantly and positioned itself as the best bank in terms of income spent on cost in 2022, despite falling out of the top 10 in 2021.
Guaranty Trust Bank consistently maintained its position as the second-best bank in this category. Access Bank retained its position in the top 3, although it dropped to the 3rd position in 2022 after being the top bank in 2020 and 2021.
Also, OmniBSIC showed significant improvement by placing 9th in 2022, indicating successful cost cutting measures.
Capital Adequacy Ratio
FBN Bank consistently held the top position in the capital adequacy ratio, with a range of 56% to 74% from 2020 to 2022, maintaining a significant lead over other banks.
Bank of Africa experienced a decline in its position, moving from 2nd in 2020 to 5th in 2022, possibly due to the impact of the DDEP.
Guaranty Trust Bank maintained a relatively stable position, moving from 3rd in 2020 to 4th in both 2021 and 2022.
Zenith Bank’s position fluctuated, going from 4th in 2020 to 3rd and 4th in 2021 and 2022, respectively.
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