This marks a 32.2 percent increase year-on-year from June 2024
The Ghanaian banking sector has recorded a striking surge in profitability, posting a 32 percent uptick in after-tax profits to GH¢7.2 billion by June 2025, according to the Bank of Ghana’s July 2025 Monetary Policy Report.
The profit before tax for the same period rose to GH¢10.8 billion, marking a 32.2 percent increase year-on-year from June 2024.
The 2025 Monetary Policy Report attributes this robust performance largely to gains across multiple income streams, including interest income and “other income,” which grew faster in 2025, compared to 2024.
Interest operations continued to play a central role. Net interest income climbed by 20.2 percent to GH¢14.2 billion, powered by higher yields from money market instruments and elevated lending rates.
On the cost side, interest expenses also increased, reaching GH¢7.5 billion, a 20.7 percent rise, though the margin remained favorable.
Non-interest revenue also stood out: net fees and commissions rose by 17.8 percent (versus 16.8 percent a year ago) and “other income” shot up by 52.2 percent, bouncing back from a contraction in the prior year.
These gains fed into an operating income of GH¢20.9 billion, 24.4 percent higher than in June 2024, and a gross income of GH¢28.3 billion, up 23.4 percent year-on-year.
However, the report noted that the expansion in costs was also notable. Operating expenses (staff, administration, etc) climbed by 21.4 percent, faster than the 15.5 percent growth seen in the previous year, putting pressure on efficiency.
On the bright side, impairment losses on financial assets and provisions contracted by 14.8 percent, though this reduction is less steep than the 39.5 percent contraction a year earlier.
The report also signals underlying strength in Ghana’s economy. It noted that the banking sector’s financial soundness indicators improved in June 2025 relative to June 2024, with better solvency, efficiency, and asset quality.
The non-performing loan ratio also improved because growth in loans and advances outpaced growth in NPL stock.
However, despite the good news, challenges still remain. The report cautions that liquidity measures have moderated, making it essential for banks to enforce strict underwriting standards and to intensify loan recoveries moving forward.
In short, Ghana’s banks are in a profit wave in 2025, mainly due to rising interest income and diversified revenue streams, but they must remain vigilant if they hope to convert this performance into sustained stability.
ID/AE
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