Banks’ total assets was GH¢17.4 billion in 2010.
The increase of assets was driven by deposits which the central bank says “grew by 35.3% on a year-on-year basis to GH¢16 billion in 2011, compared to a growth of 31.7% in 2010.”
While growth in capital and reserves, the central bank noted amounting to GH¢739 million also supported banking sector balance sheet expansion.
Giving an overview of the performance of the industry last year, the report said the Capital Adequacy Ratio (CAR) declined to 17.4% in 2011 from 19.1% in 2010, “although it remained well above the statutory level of 10%.”
In terms of earnings, the BoG report shows that all the indicators (Return on Equity, Return on Assets and Return on Earnings Assets) improved in 2011 compared to the 2010 levels with “Non-Performing Loan ratio declining from 16.1%in 2010 to 14.2% at the end of 2011.”
By Ekow Quandzie