Bank of Ghana posts GH?10.5bn loss for 2023

The Bank of Ghana reported a loss of GH?10.50 billion for the financial year ending 2023. This loss was primarily attributed to a substantial rise in total interest expenses on open market operations by the Central Bank, which surged by GH?6.7 billion during the period under review.

The Bank explained that these increased expenses were necessary to manage excess liquidity in the economy and support the disinflation process as part of a broader macroeconomic adjustment program.

As of December 31, 2023, the Bank of Ghana and its subsidiaries had total liabilities exceeding total assets by GH?65.36 billion. The total operating expenses for 2023 amounted to GH?19.2 billion, a significant decline from the GH?66.9 billion recorded in 2022. This decrease was attributed to lower impairment charges on loans and advances and the Bank’s holdings of Government of Ghana securities.

Despite the GH?10.50 billion loss, this represents a significant improvement compared to the GH?60.9 billion loss in 2022, which was due to the impairment of its holdings of marketable government stocks and non-marketable instruments during the domestic debt exchange program.

The Bank of Ghana noted that the open market operations, which accounted for a significant portion of the loss, yielded positive results.

The Bank's 2023 Annual Report and Financial Statement disclosed, The aggressive mopping up operations contributed to slowing down inflation to 23.2 percent by the end of 2023, significantly down from 54.1 percent at the end of 2022,

No amount was set aside for reserve appropriation as the reserve amount was in deficit as of December 31, 2023. The Central Bank emphasized its policy solvency, highlighting its ability to generate sufficient realized income to cover the costs associated with monetary policy operations.

The Board of Directors and Management view the policy solvency outcome for 2023 as consistent with the perspective held in 2022.

The report stated that the Bank would continue to operate efficiently and effectively on a going concern basis, striving to achieve its policy mandates despite the significant loss recorded.

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