Investor Presentaiton
Competition and Markets
CURRENT
OUTLOOK
Bank
CAL Bank
on our Service
BANKING
SECTOR &
MONEY
MARKET
•
First Capital Bank introduced in 2014
Still 27 banks in operation: 14 foreign,
4 government; 9 local private
Interest rates increase during HY 2014
(January to June 2014):
91-Day Treasury Bill: 19.2% to
24.1%
182-Day Treasury Bill: 18.7% to
21.3%
1-year note: 17.0% to 22.5%
2-year note: 16.8% to 23.0%
3-year bond: 19.2% to 24.4%
5-year bond: 19.0% to 23.0%
Weighted average interbank rate:
16.3% to 24.0% from January June
2014
Average lending rates of banks: 25.6%
to 27.9% from January - June 2014
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Deposits
-
Intense competition for
deposits with several banks launching
promotions to improve liquidity
-
High interest rates expected to
dampen Asset growth (Loans &
Advances) and increase default risk
across banking industry
Mortgage market - Feb 2014 Central
Bank restrictions on USD-denominated
loans have negatively impacted
mortgage growth
Forex - Continued Cedi depreciation and
rising inflation will continue to drive up
bank operating costs
Proposed New 17.5% VAT on financial
services (although currently suspended)
will reduce bank deposit growth
Half-Year 2014 Investor Presentation - August, 2014
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