The banking sector recorded a significant increase in profit in April 2025 compared to the same period last year, the Bank of Ghana (BoG) has reported.

In its Banking Sector Development Report, BoG revealed that banks collectively made a profit of GH¢4.3 billion in April this year, reflecting a 22.0% increase from the GH¢3.5 billion recorded during the same month in 2024.

The report explained that banks earned more from their activities, such as interest income, fees, commissions, and other revenue streams, than they did in April 2024.

Expounding further, the central bank noted that although net interest income was lower than the 22.4% in April 2024, it grew by 15.5% to GH¢9.2 billion in April this year.

It indicated that interest income performed at a slower pace, GH¢13.9 billion up from GH¢12.0 billion in April 2024, representing a 15.9% increase relative to 19.4% in year-on-year terms.

The report explained that the slower growth in interest income was partly because banks earned less from money market investments and also had to lower their lending rates, largely due to current economic conditions.

Interest expenses in April 2025 picked up to GH¢4.7 billion, up 16.5% from 14.0% recorded this year. According to BoG, the volume of loans issued by the banks also played a major role in the increase in interest expenses.

Fees and commissions in April generated more funds for banks than they did during the same period the previous year, showing a significant increase in growth.

In April 2025, banks’ non-core income sources reversed the declines recorded during the same period in the previous year and saw a strong rebound. Profitability indicators for the banking sector, including return-on-assets (ROA) and return-on-equity (ROE), slightly weakened.

BoG concluded that, while banks remained profitable, their efficiency in generating returns on equity and assets declined compared to 2024.

As per the Monetary Policy Report, from January to June 2024, the banking industry gained a profit-after-tax of GH¢5.4 billion, which represents a 25.5% increase compared to the profit they made in June 2023.

Prior to tax deductions, the total profit made by banks increased by 22.8%, reaching GH¢8.1 billion. The report attributed the lower growth in profit during this period to the increases in income sources such as interest income and other revenue streams.