High yields treasury bills drive Ghanaian banks’ exceptional profitability.

Ghanaian banks are experiencing exceptional profitability due to high yields on the country's treasury bills.

Monetary policy initiatives by the Bank of Ghana in 2022, including restructuring domestic debt instruments, resulted in losses to domestic bondholders. According to reports by Fitch, the country's banking sector reported strong profitability in 2023, driven by net interest margins benefitting from the exceptionally high treasury bill yields.

Ghana paid the second coupon of $464 million to domestic bondholders this month and is committed to completing the external debt restructuring process as soon as possible, according to Ghana's President Nana Akufo-Addo during his State of the Nation Address in parliament yesterday.