Banking industry profit moderate to GH¢7.2bn in June 2026

The banking sector's profit in June 2026 was GH¢7.1 billion, slightly less than the GH¢7.2 billion recorded in the same period a year earlier, according to the Bank of Ghana's July 2026 Monetary Policy Report. The tax profit growth turned negative, falling by 1.3% compared to the 32.6% growth in June 2025. Also, profit before tax (PBT) declined year-on-year, with a 1.5% contraction in June 2026, opposite to the 32.2% growth in the same period of 2025.

While fees and commissions income grew by 18.2% in June 2026, compared to 17.8% a year earlier, other income lines expanded at a slower pace compared to the corresponding period in 2025. Net interest income contracted by 3.1% in June 2026, down from 20.2% growth in June 2025, indicating a slowdown in interest income growth due to low interest rates.

The cost components of the banking industry also moderated, with operating expenses increasing at a slower pace, from 21.4% in June 2025 to 6.0% in June 2026. However, provisions for depreciation, bad debts, and impairment losses on financial assets surged by 38.2% in June 2026, compared to a 14.8% contraction in June 2025. Profitability indicators for the banking sector also declined, with Return on Equity (ROE) dropping to 22.9% in June 2026 from 32.2% in June 2025, and Return on Assets (ROA) decreasing to 4.4% from 5.6% in the same period.

The interest margin and spread narrowed from 6.0% in June 2025 to 4.4% in June 2026, mainly due to a slight decline in interest payable from 2.8% to 1.7%. The gross yields also decreased to 6.1% in June 2026 from 8.9% a year earlier. The ratio of gross income to total assets (asset utilization) fell from 7.4% to 5.4%, while the profitability ratio marginally increased from 25.3% in June 2025 to 25.9% in June 2026.