The BOG said net fees and commissions recorded a slower growth of 16.8 percent in June 2024, from 30.6 percent the previous year while other income recorded a sharp contraction of 16.2 percent to GH¢2.4 billion in June 2024, from GH¢2.8 billion in June 2023.

These developments in the different income lines according the central bank culminated into a sharp increase in industry's operating income to GH¢16.8 billion in June 2024, from GH¢14.9 billion in June
2023.

It said similarly, gross income increased to GH¢23.0 billion in June 2024, from GH¢20.1 billion in June 2023.

The BOG said the cost lines recorded similar increases in June 2024, but at lower growth rates compared to the same period in 2023.

The central bank said the industry's operating expenses grew by 15.5 percent in June 2024, compared to 44.9 percent in June 2023, on the back of slower growth in staff costs and other operating (administrative) expenses.

It also said impairment losses on financial assets, as well as provisions for bad debt and depreciation, contracted by 39.5 percent in June 2024, compared to 32.7per cent increase in June 2023.

The Central bank noted that the banking sector's performance in June 2024 pointed to continuing recovery from the macroeconomic challenges since 2022.

However, it said asset quality concerns remained a drag on the performance of the sector noting that the banking sector remained profitable, liquid, and generally efficient during the review period.

The central bank said stability in solvency reflected the rebound in profitability in the industry post-Domestic Debt Exchange Programme (DDEP) implementation, as well as the ongoing recapitalisation effort by banks.

The bank said that outlook remained stable, but recapitalisation and enforcement of stringent credit underwriting standards, and intensified loan recovery efforts were critical to ensuring good performance of the banking sector in the medium term.