The total assets of Ghana’s banking sector grew by 33.3 per cent to GH¢323.2 billion as of  June 2024, relative to a growth of 21.2 percent recorded in June 2023, the Bank of Ghana’s Monetary Policy Report of July 2024 has revealed.

The higher growth in assets was driven by a “robust” growth in deposits, as well as the depreciation of the Ghana cedi, the central bank noted.

It said foreign assets grew by 57.6 per cent in June 2024, compared to 74.5 per cent in June 2023, while domestic assets grew by 31.0 per cent in June 2024, up from 17.8 per cent growth in the same period last year.

The share of foreign assets in total assets increased to 10.2 per cent from 8.6 per cent, while the share of domestic assets declined to 89.8 per cent from 91.4 per cent in June 2023.

Also, the report noted that investments grew by 19.2 per cent to GH¢107.2 billion in June 2024, up from a growth of 11.0 per cent in June 2023, due to a significant growth in both short-term and long-term instruments.

The growth in investments reflected a 7.3 per cent growth in short-term bills, from a growth of 149.6 per cent in June 2023, while long-term investments (securities) also grew by 28.6 per cent in June 2024, having contracted by 23.2 per cent in June 2023.

The central bank said mixed growth in both bills and securities investments culminated in a reduced share of investments in total assets to 33.2 per cent in June 2024, from 37.1 per cent in June 2023.

Gross loans and advances rose by 15.6 per cent to GH¢84.5 billion in June 2024, relative to a 15.4 per cent growth in June 2023.

Additionally, growth in net loans and advances (gross loans adjusted for provisions and interest in suspense) also moderated to 10.3 per cent, from 11.3 per cent during the same period last year.

The higher growth in assets was funded by increases in deposits and other funding sources.

Deposits remained the main source of funding for the banking sector, accounting for 76.1 per cent share of total assets in June 2024, from 77.4 per cent in June 2023.

Deposits improved by 31.1 per cent to GH¢245.9 billion in June 2024, as against 42.8 per cent growth recorded in June 2023.

The foreign currency component of deposits grew by 29.8 per cent to GH¢81.2 billion in June 2024, relative to a growth of 62.5 per cent in June 2023, suggesting some currency depreciation effect on the overall growth in total deposits.

Furthermore, borrowings picked up by 44.4 per cent to GH¢23.2 billion in June 2024, up from 39.1 per cent contraction recorded in June 2023.

The growth in borrowings reflected an uptick in both short-term foreign and domestic borrowings while long-term domestic and foreign borrowings contracted.

Short-term domestic borrowings of GH¢15.2 billion at end-June 2024 suggested a growth of 83.0 per cent, relative to a contraction of 33.6 per cent recorded in June 2023.

Long-term domestic borrowing, however, contracted by 17.6 per cent in June 2024, down from a growth of 45.1 per cent during the same period in 2023.

Short-term foreign borrowings grew by 33.2 per cent, after contracting by 75.7 per cent in June 2023, while long-term foreign borrowings contracted by 2.5 per cent, from the 16.2 per cent contraction registered in June 2023.

Banks’ shareholders’ funds position (comprising paid-up capital and reserves) continued to improve on account of a rebound in profits across the industry.

Total shareholders’ funds grew sharply by 44.9 per cent to GH¢32.3 billion as at end-June 2024, relative to a contraction of 15.1 per cent recorded a year ago.