Whole property of the banking sector grew by 33.3 p.c to GH¢323.2 billion as at June 2024, relative to a progress of 21.2 p.c recorded in June 2023, that is the most recent from the Financial institution of Ghana (BoG) Financial Coverage Report.
It defined that the upper progress in property was pushed by a sturdy progress in deposits, in addition to the depreciation of the Ghana cedi.
“International property grew by 57.6 p.c in June 2024, in comparison with 74.5 p.c in June 2023, whereas home property grew by 31.0 p.c in June 2024, up from 17.8 p.c progress similar interval final yr”, it mentioned.
Based on the report, the share of overseas property in complete property elevated to 10.2 p.c from 8.6 p.c, whereas the share of home property declined to 89.8 p.c from 91.4 p.c in June 2023.
“Investments grew by 19.2 p.c to GH¢107.2 billion in June 2024, up from a progress of 11.0 p.c in June 2023, as a result of a big progress in each short-term and long-term devices”.
It identified that the expansion in investments mirrored a 7.3 p.c progress in short-term payments, from a progress of 149.6 p.c in June 2023, whereas long-term investments (securities) additionally grew by 28.6 p.c in June 2024, having contracted by 23.2 p.c in June 2023.
The blended progress in each payments and securities investments culminated in a lowered share of investments in complete property to 33.2 p.c in June 2024, from 37.1 p.c in June 2023. Gross loans and advances rose by 15.6 p.c to GH¢84.5 billion in June 2024, relative to a 15.4 p.c progress in June 2023. Progress in web loans and advances (gross loans adjusted for provisions and curiosity in suspense) additionally moderated to 10.3 p.c, from 11.3 p.c throughout the identical interval final yr.
The report said that the upper progress in property was funded by will increase in deposits and different funding sources. Deposits remained the primary supply of funding for the banking sector, accounting for 76.1 p.c share of complete property in June 2024, from 77.4 p.c in June 2023.
Deposits improved by 31.1 p.c to GH¢245.9 billion in June 2024, as towards 42.8 p.c progress recorded in June 2023.
“The overseas foreign money part of deposits grew by 29.8 p.c to GH¢81.2 billion in June 2024, relative to a progress of 62.5 p.c in June 2023, suggesting some foreign money depreciation impact on the general progress in complete deposits”.
Based on report, borrowings additionally picked up by 44.4 p.c to GH¢23.2 billion in June 2024, up from 39.1 p.c contraction recorded in June 2023.
“The expansion in borrowings mirrored an uptick in each short-term overseas and home borrowings whereas long-term home and overseas borrowings contracted”.
“Quick-term home borrowings of GH¢15.2 billion at end-June 2024 prompt a progress of 83.0 p.c, relative to a contraction of 33.6 p.c recorded in June 2023”, it added.
Lengthy-term home borrowing, nevertheless, contracted by 17.6 p.c in June 2024, down from a progress of 45.1 p.c throughout the identical interval in 2023. Quick-term overseas borrowings grew by 33.2 p.c, after contracting by 75.7 p.c in June 2023, whereas long-term overseas borrowings contracted by 2.5 p.c, from the 16.2 p.c contraction registered in June 2023.