Ghanaian banks need a miracle to stay in business - Banking expert

Ghanaian banks need a miracle to stay in business - Banking expert

- Philip Owiredu, managing director of CAL Bank, has expressed concerns about the possible performance of banks in Ghana in the second quarter of the year

- According to him, it would take a miracle for the banks to remain in business

- He explained that the outbreak of coronavirus has had a devastating effect on the banking sector

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The Managing Director of CAL Bank, Phillip Owiredu, has suggested that banks in Ghana would need a miracle to continue doing business in the country.

According to him, the outbreak of COVID-19 has negatively affected the operations of several banks in the country.

He added that the outbreak was at serious levels only one month into the first quarter but still managed to affect the finances of the banks.

Ghanaian banks need a miracle to stay in business - Banking expert
Source: Business Day Ghana
Source: UGC

READ ALSO: COVID-19: Ghana could earn over GHc300 million from the production of face masks - Expert

Owiredu is of the opinion that the next quarter could prove to be dangerous for the banks given the increasing number of cases. understands that the latest Bank of Ghana report shows COVID-19 is taking a toll on the banking sector.

Per a report, it added there were growing signs that the pandemic was increasingly affecting the industry.

The report revealed there was a fall in growth rate in key performance indicators in the sector.

Total assets, for instance, grew by 3.5% in 2020 Q1 and it was lower than the 5.7% registered for the same period in the preceding year.

It was also realised that deposits, credit, investment, and profit-after-tax also recorded lower growth rates.

In other news, Fidelity Bank has recorded a profit of GHc322 million for the 2019/2020 financial year.

This is a 33% increase compared to the GHc242 million it earned in the preceding year.

Over the course of its 2020 Annual General Meeting (AGM) that was conducted via a virtual platform, its shareholders received and adopted the reports of directors.

READ ALSO: Ghana receives $315 million from the World Bank to create jobs and develop skills

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