Investments including government securities such as treasury bills and bonds remained the largest component of banks’ income as of February 2022, although its share moderated to 48.5%, from 51.1% during the same period a year ago
According to the Bank of Ghana, interest income from loans constituted the second largest source of banks’ income, bringing in a lower share of 30.6% compared with 31.1% during the same comparative period.
The share of banks’ income from fees and commissions also moderated to 11.7%, from 12.3%, in line with the slower growth of fees and commissions. The share of other income increased to 9.2%, from 5.5% during the period under review.
Meanwhile, the industry remained broadly cost efficient during the period under review, despite the slight uptick in operational cost relative to income.
The cost-to-income ratio of the industry inched up to 78.0% in February 2022, from 77.2% in February 2021, while cost-to-total assets improved marginally to 1.7%, from 1.8% during the period under review. Following the increase in operating expenses during the reference period, the ratio of operational cost to total income increased marginally to 52.2%, from 51.7%, while that of operational cost to total assets remained unchanged at 1.2% during the period under review.
Again, the industry’s operating expenses also increased significantly by 21.3% in February 2022, after recording a mild contraction of 0.3% during the same period in 2021, from increases in both staff costs and other operating expenses.
Despite the improved income performance, the increase in operating expenses moderated the growth in net operating income to 13.3% in February 2022 compared with the 17.1% growth recorded in the corresponding period last year.
Latest Stories
-
The Fourth Estate’s investigative report wins 2nd place at 2024 AIJC
5 mins -
GPL: Our fans spur us on – GoldStars head coach Frimpong Manso on unbeaten run
45 mins -
Plantain chips are breaking hearts in Africa
49 mins -
61 new architects acquire state license to practice in Ghana
1 hour -
Masloc CEO honoured as capacity building Shero of the Year
1 hour -
MPs’ Repeated Attempts to Sue the Speaker: Unintended Consequences for the 2024 Elections?
1 hour -
Today’s front pages: Tuesday, November 5, 2024
2 hours -
Galamsey: Investigation into attack on Joy News’ Erastus Asare and colleagues already growing cold
2 hours -
Mahama promises construction of stadia in all 16 regions if elected
2 hours -
Dampare has transformed Police training school – Bawumia
2 hours -
America braced as two stark visions collide on election day
3 hours -
NAPO urges Ghanaians to support NPP’s vision for national development
3 hours -
About 95% of PWDs in Obuasi have source of livelihood – MCE
3 hours -
Immigration Service intercepts 54 gallons of fuel
3 hours -
Election 2024: Roman Fada selected as flagbearer for Ghana Freedom Party
3 hours