A 2016 banking survey released by the Price Water House Coopers (PWC), has shown that the total assets of the banking industry grew by almost 9 billion cedis between 2014 and 2015.
The report also cited Ecobank as having the highest total operating asset of about 6 billion cedis between 2011 and 2015 while Bank of Baroda had the least total operating asset of between the same period.
According to the survey, the banking industry’s operating assets grew to 53.63 billion cedis in 2015, from the 45.13 billion cedis in 2014.
Of this figure, net loans and advances topped as the most significant component of the industry’s earning assets representing 47 percent same as recorded in the previous year.
The survey also revealed, cash assets was the second highest component of the industry’s earning assets. Its contribution increased from 27.3% in 2014 to 28.5% in 2015.
The increase in cash assets is attributable to growth in industry deposits of 17.0% in 2015.
In addition, significant part of the cash assets was held with other banking institutions, which accounting for about 61% about the same level recorded in 2014.
Even though the contribution of income on investment securities had initially risen from about 28% in 2011 to about 37% in 2013, the figure has declined to 30.4 percent as at 2015.
Meanwhile between 2011 and 2015, Ecobank recorded the highest total operating asset worth almost 6 billion cedis in 2015 while Bank of Baroda had a total operating asset worth 266 million cedis between the same period.
Meanwhile of the increased total assets recorded by the banks, net loans and advances decreased significantly from 43 percent to 12.5 percent between 2014 and 2015.
The survey attributed this to the cautious lending practices by the banks on the back of the challenging economic conditions and their impact on loans recoveries.
By: Pius Amihere Eduku/citibusinessnews.com/Ghana