Banking sector records strong performance during first half of 2023 - Ofori-Atta

Finance Minister, Ken Ofori-Atta, has said that the financial sector made an impressive performance during the first half of the fiscal year 2023.

He made the statement while presenting the 2023 mid-year budget review before parliament on Monday, July 31.

He noted that despite the economic turbulence including the pending IMF relief programme, the sector posted an "unexpected" and "relatively strong" performance.

"Mr. Speaker, the banking sector posted unexpected, relatively strong performance during the first half of the year, despite the lingering effects of the DDEP," he said.

He further explained that banks reported increased deposits and investments, higher profitability and a return on equity of over 35 percent.

Ofori-Atta added that, "the impact of the DDEP, such as the increase in non-performing loans (NPLs), was partly moderated by the timely introduction of temporary regulatory reliefs."

Therefore, he pledged to maintain the banking industry's stability and help it grow so that it can support the private sector.

"In the outlook, the operationalisation of the US$750 million Ghana Financial Stability Fund and the planned recapitalisation of banks would ensure stability as well as strengthen financial intermediation to support the private sector," Ofori-Atta said.

The presentation of the mid-year budget review statement is by the provisions of the Public Financial Management Act 2016.

The Act mandates the Minister of Finance to present the mid-year review of the budget statement on the Economic Policy of the Government of Ghana for the fiscal year.

It aims to provide a platform for government to update the House and citizens on its economic progress as well as outline any necessary adjustments to the budgetary allocations and policies.

KN/MA