Absa Bank Ghana Drives Economic Growth with Strong Q1 2025 Performance and SME Focus
Absa Bank Ghana is navigating the aftermath of the Domestic Debt Exchange Program (DDEP) with resilience and strategic focus. Amid a significant decline in Treasury bill rates, the bank remains committed to supporting the real economy and creating long-term value.
Proactive Lending and Support for SMEs
Absa Bank Ghana currently holds the highest loan-to-deposit ratio among Tier 1 banks, signaling its proactive stance on loan issuance and responsible investment in government securities. A cornerstone of this approach is its focus on Small and Medium-sized Enterprises (SMEs).
In collaboration with the Mastercard Foundation, Absa provided loans to over 7,000 SMEs at a competitive interest rate of 10%, directly contributing to the creation of nearly 50,000 jobs. This initiative underlines the bank’s commitment to inclusive growth and entrepreneurship.
Absa also partnered with MTN on the Ahomka Loan initiative, disbursing more than GH¢7 billion in microloans via digital wallets over the past five years. This effort has significantly boosted financial inclusion across Ghana’s informal economy.
Credit Recovery and Strong Treasury Management
One of Absa’s key achievements this year was its reversal of a first-quarter net impairment charge, transforming it into a net positive credit position. This was accomplished through rigorous client engagement, reassessment of credit loss provisions, and the strategic release of excess reserves.
The bank also recorded substantial growth in non-pledged trading assets, reflecting rising trading activity and a robust treasury and liquidity management strategy.
Sustained Deposit Growth and Controlled Risk
Absa Bank Ghana reported strong year-on-year deposit growth, fueled by market-leading account offerings and exceptional customer experience. Despite an expanding loan book, the bank maintained a low Non-Performing Loan (NPL) ratio, thanks to strong origination controls and disciplined credit assessment.
Investing in Communities and Financial Inclusion
Beyond financial services, Absa is actively investing in community development. Its financial literacy programs reached over 100,000 students in 2024, and through partnerships with organizations like CAMFED, the bank provides vocational training to empower women and promote sustainable livelihoods.
These initiatives have contributed to rising public trust. According to the Ghana Banking Sentiment Index, Absa ranks among the top banks for customer satisfaction.
Innovations in Digital Banking and Premium Services
Absa’s commitment to innovation is evident in its upgraded mobile banking app, the expansion of its Agency Banking network, and the launch of Infinite and Signature Credit Cards. These premium offerings provide customers with global shopping discounts, travel insurance, and other lifestyle benefits.
As it brings its ‘Your Story Matters’ ethos to life, Absa Bank Ghana is positioning itself for sustained growth, strong customer engagement, and continued leadership in Ghana’s financial sector in 2025 and beyond.
