Banks’ sustainable success will be defined less by interest margins – PwC
According to the professional services firm, the challenge ahead is not simply to navigate a lower-rate environment while keeping existing business models intact, but to deliberately reposition for it.
A recent PwC survey of Ghana's banks suggests that future success in the country's banking sector will be measured more by strategic focus and business model reinvention than by interest margins. The professional services firm warns that navigating a lower-rate environment will require banks to deliberately reposition and make clear choices about where they can win, invest in necessary capabilities, and build value-generating business models beyond the interest-rate cycle.
The report emphasizes that banks must be guided by their core purposes and values when making these strategic decisions. Early and decisive action, the survey suggests, may position banks to shape the industry's future. Meanwhile, Ghana's banking sector found itself in a relatively favorable macroeconomic environment in 2025, marked by easing inflation, stable exchange rates, stronger economic growth, and improved fiscal conditions.
The industry saw robust balance sheet growth, improved liquidity, sustained profitability, and asset expansion driven by increased deposit mobilization, higher allocation to debt securities, and growing lending activity.
Earnings also remained strong, backed by higher core banking revenues, increased trading income, and growth in fees and commissions. However, PwC notes that the outlook for earnings is becoming more challenging due to lower interest rates, which are narrowing margins and diminishing the benefits previously derived from a high-yield environment.
Written by urgent.news from Joy Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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