Bank of Ghana makes GH₵10.5bn loss in 2023

In the recent Business and Economy News, the Bank of Ghana has made a financial loss of GH₵10.50 billion last year, 2023.

The major cause of this loss was the significant increase in total expenses on the open market operations by the Central Bank.

The open market’s operations expenses increased to a whooping GH₵6.7 billion during the period of its review.

The increase according to Bank of Ghana, was incurred because of the need to manage surplus liquidity in the Ghanaian economy and also help decrease inflation, which represents a broader macroeconomic adjustment strategy.

At the end of 2023, the Bank of Ghana and its subsidiaries all had total liabilities passing total assets by GH₵65.36 billion.

In a notable decline, the total operating expenses in 2022 which was GH₵ 66.9 billion decreased to GH₵19.2 billion in 2023. This is because of the lower impairment charges on bank loans and advanced and the Bank’s holdings of Government of Ghana securities.

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Even though there’s a GH₵10.50 billion loss in 2023, it is still a significant improvement as last year’s loss was GHS 60.9 billion following the impairment of Bank of Ghana’s holdings of marketable government stocks and non-marketable instruments during the domestic debt exchange program.

The Bank of Ghana further explains that “this Open Market Operations activity, which accounted for a significant portion of the loss incurred yielded positive results”

“The aggressive mopping up operations, contributed to slowing down inflation to 23.2 per cent by the end of 2023, significantly down from the rate of 54.1 per cent at the end of 2022”, the Bank of Ghana’s 2023 Annual Report and Financial Statement disclosed.

Based on the report provided, no money was kept aside for reserve appropriation as the reserve money was in shortage as at the end of 2023.

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The Central Bank of Ghana then explained that a note of policy solvency supports it’s ability to make more realized income to cover costs in line with the conduct of monetary policy operations.

In the perspective of the board of Directors and Management, the policy solvency Outcome for 2023 is in alignment and consistent with the perspective held in 2022.

According to the report, the Bank will continue to operate efficiently and effectively on a going concern basis and achieve its policy mandates, despite the significant loss recorded in 2023.

Directors of the Bank did not recommend the payment of dividend for the period.

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