He said preliminary estimates of government operations indicated an increase in the overall deficit, including grants, from D2.1 billion (1.5 percent of GDP) in the first quarter of 2023 to D2.2 billion (1.3 percent of GDP) during the same period in 2024.
At a press conference held yesterday at the Bank’s conference room, Governor Saidy explained that revenue performance continues to be strong, thanks to improvements in tax administration.
“Total revenue and grants mobilised in the first quarter of 2024 surged to D7.3 billion (14.2 percent of GDP), a 21.7 percent rise from the corresponding period last year. Total expenditure and net lending for the first quarter of 2024 increased by 17.6 percent to D9.6 billion (5.5 percent of GDP),” he said.
He underscored that the stock of domestic debt declined marginally to D41.0 billion (26.3 percent of GDP) in April 2024, from D41.3 billion (29.4 percent of GDP) in December 2023.
“Treasury bills and Sukuk Al Salaam bills, with maturity of one year or less, accounted for 47.8 percent of the total domestic debt stock. Medium to long-term debt constituted 32.5 percent and 19.7 percent, respectively.”
Governor Saidy added that yields on short-term government securities continue to decline, influenced by liquidity conditions in the banking system. “The one-year, six-month, and three-month treasury bills rate declined to 6.2 percent, 3.3 percent, and 3.4 percent in March 2024 from 10.8 percent, 8.0 percent, and 6.1 percent in December 2023, respectively,” he said.
He further stated that trade activity volumes in the interbank dalasi market from January to April 2024 recorded D4.9 billion compared to D7.4 billion reported in the same period of 2023. The weighted average interest rate prevailing in the market declined from 7.4 per cent in April 2023 to 4.9 percent in 2024, following the three-month Treasury bills rate.
“The banking industry's performance remains robust, underpinned by healthy macroprudential ratios. The asset base of the industry grew from 70.7 percent of GDP in March 2023 to 76.9 percent in March 2024. Total customer deposits, which continue to be the main source of funding for banks, increased by 11.1 percent (year-on-year) to stand at D58.9 billion as of March 2024.”
Furthermore, he said the industry “remains well-capitalised” and solvent.
“The capital and reserves of banks increased by 30.9 percent to stand at D10.6 billion, benefiting from a 19.4 percent rise in retained earnings from a year ago,” he stated, saying: “The aggregate risk-weighted capital adequacy ratio of banks stood at 27.9 percent in March 2024 and all banks were above the minimum regulatory requirement of 10 percent. The banking industry continues to be liquid and profitable with a systemwide liquidity ratio of 78.3 percent in March 2024, compared to 70.9 percent reported in March 2023.
However, he added: “The industry's non-performing loans increased in the reporting quarter to 8.7 percent, from 3.3 percent reported in December 2023. Although credit concentration risks remain, the stress test results indicated overall market risk is low and the banking industry remains resilient.”
