Banks record strong growth in their asset base in the first half of 2021

Data from the financial statements of about 60% of the country’s banks for the first half of the year 2021, show a steady growth in their total assets.

While banks like UBA Bank and OmniBSIC Bank saw their asset base grow by almost 40% at the end of the first half of 2021, compared to figures recorded at the end of the first half of 2020, others like FBNBank and Fidelity Bank saw their asset base increase by around 5% during the same period under review.

UBA bank closed the first half of 2020 with total assets of GHS 3.38 billion. This figure rose to around 4.69 billion GHS at the end of June 2021, representing growth of around 38.98%.

A leading bank like ADB Bank ended June 2020 with total assets valued at around GHS 4.9 billion, rising to around GHS 6.1 billion at the end of June 2021, a growth of around 26%.

Of the 13 banks examined by Citi Business News, GCB Bank and Ecobank had 2 of the largest asset bases.

While the GCB bank’s asset base grew by 16% from around GHS 14.16 billion at the end of June 2020 to GHS 16.4 billion at the end of June 2021, Ecobank saw its asset base increase by 18 , 27%, from around GHS 13.7 billion. to GHS 16.2 billion during the reporting period.

Banks like CAL Bank and Access Bank have also recorded impressive growth of around 28% and 24% respectively in their total assets.

CAL Bank grew from around GHS 7 billion to GHS 9 billion, while Access Bank grew from around GHS 5.6 billion to GHS 7 billion during the underlying period.

Some banks like Fidelity Bank and FBN bank recorded marginal growth of 4.25% and 5.28% respectively. Fidelity saw its asset base grow from around GHS 10.2 billion at the end of June 2020 to GHS 10.6 billion at the end of June 2021.

Total assets of FBNBank increased from GHS 1.6 billion to GHS 1.69 billion during the same period.

Overall, the central bank in its assessment of the performance of the banking sector for the first 6 months of 2021 said that the performance of the sector reflected sustained growth in total assets, investments and deposits. Total assets increased 17.2% to GH ¢ 162.9 billion, driven by strong 28.8% growth in investments in government securities to GH ¢ 75.7 billion.

Michael J. Birnbaum

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