Ecobank, GCB bank controlled 23.9% of deposits in banking industry in 2020

Ecobank, GCB bank controlled 23.9% of deposits in banking industry in 2020

Deposits remained the main source of funding for the industry Ecobank Ghana and GCB Bank controlled about 23.9% of the banking industry market share in terms of deposits in 2020.

The year-on-year growth of deposits went up by 25.1% in 2020 recording GH¢104 billion.

GH¢149.3bn total assets

Total assets of the banking sector stood at GH¢149.3 billion as at December 2020, indicating a y/y growth of 15.7% (2019: 20.2%).

A research analysis by investment firm Tesah Capital showed that Ecobank Ghana and GCB Bank continued to show their dominance in the banking industry, controlling almost a quarter of the industry’s deposits.

According to the research report, while Ecobank Ghana led the pack with 12.4% of the market share of deposits in 2020, GCB Bank controlled about 11% of all deposits.

It pointed out that the two banks operate digital platform, which enabled customers to undertake several transactions, and this helped them to grow and increase their deposits.

Stanbic, Absa, Consolidated Bank Ghana, Fidelity and Standard Chartered Bank placed third, fourth, fifth, sixth and seventh respectively, the report said.

Growth in deposits

Deposits remained the main source of funding for the industry, with its share increasing from 64.7% to 69.6% between 2019 and 2020.

The lower growth in 2020 was due to the adverse impact of the COVID-19 pandemic on banking activities in 2020.On loans, Ecobank Ghana dominated the industry, controlling 10.4% of the assets last year.Per the report, Absa, Stanbic and GCB followed suit in second, third and fourth positions respectively.In the report, Zenith Bank maintained its number one position as the best bank in financial performance in 2020.Stanchart moved to second position whilst Ecobank, which was second in 2019, placed third and GCB Bank came fourth respectively, it saidOn the other hand, FBN Ghana, Universal Merchant Bank (UMB) and Prudential Bank were the least ranked banks.The rankings emanated from an assessment of the creditworthiness and performance of the banks using capital adequacy ratio, assets size, management capability, earnings and liquidity.The bank performance evaluation rankings were based on the financial statements released by the banks for FY 2020.The rankings focused on 21 out of the 23 commercial banks in Ghana, as the financials of OMNIBSIC and National Investment Bank were unavailable at the time of the analysis.According to the report, net advances formed the larger proportion of the asset mix until 2018 where investment began to dominate.The sharp growth in total investments in 2018 was […]

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