CalBank

Ghana, which is in West Africa is bordered by the Ivory Coast to the west, Burkina Faso to the north, Togo to the east, and the Gulf of Guinea to the south. The country has a population of over 31 million people, with Accra being the capital city.

Ghana has a mixed economy with a combination of free market principles and government intervention. The country’s economy is driven by the services sector, which accounts for around 60% of its Gross Domestic Product (GDP). The industrial sector accounts for around 25% of GDP, while agriculture accounts for approximately 15%. Ghana is rich in natural resources, including gold, diamonds, oil, and cocoa, which are major contributors to its economy. The country is the world’s second-largest producer of cocoa and a significant producer of gold, bauxite, and timber. In the decade to 2021, Ghana’s economy experienced significant growth, with an average annual GDP growth rate of around 6%.

As of 2024, Ghana’s banking sector comprises 22 commercial banks, regulated by the Bank of Ghana. The market is segmented into three main categories: market-leading banks, local banks, and international banks. Ecobank Ghana maintains its position as the largest bank in the country, with total assets amounting to GH¢33.52 billion. It is followed by GCB Bank with GH¢26.9 billion, Stanbic Bank Ghana at GH¢24.63 billion, ABSA Bank Ghana with GH¢21.49 billion, and Fidelity Bank at GH¢17.22 billion .

In terms of market share, Ecobank Ghana leads with over 14% of total industry deposits, amounting to GH¢201 billion. GCB Bank holds the second position, while Stanbic Bank Ghana and ABSA Bank Ghana occupy the third and fourth spots, respectively .

The banking sector’s total assets experienced significant growth, increasing by 33.3% to GH¢323.2 billion as of June 2024, compared to a 21.2% growth in June 2023. This expansion was primarily driven by a robust increase in deposits and the depreciation of the Ghana cedi. Foreign assets grew by 57.6%, while domestic assets increased by 31.0% .

Regarding profitability, the banking sector recorded a profit before tax margin of 37.5% in 2023, a significant recovery from a negative 32.9% in 2022. This turnaround reflects the sector’s resilience following the government’s Domestic Debt Exchange Programme .

In summary, Ghana’s banking sector in 2024 demonstrates robust growth, with leading banks like Ecobank Ghana, GCB Bank, and Stanbic Bank Ghana maintaining significant market shares. The sector’s expansion is supported by increased deposits, asset growth, and a favourable regulatory environment.