MONROVIA – The Central Bank of Liberia (CBL) says the banking sector remains stable and profitable, contrary to recent media reports.
According to the Bank, performance demonstrates sustained growth in the sector over recent years and the first quarter of 2025.
The Bank states that the narrative analysis on pages 50 and 51 of the 2024 annual report is accurate and highlights consistent growth and strengthening of key balance sheet indicators, which underscore the banking sector’s continued stability and resilience.
The statistics show the progress the banking sector has made since 2022 up to the end of the first quarter of 2025.
In stance, the Bank says total assets increased from L$206 billion in 2022 to L$293.7 billion in 2023, L$314.4 billion in 2024, and exceeded L$340 billion in the first quarter of 2025, and customer deposits rose steadily from L$135 billion in 2022 to L$198.7 billion in 2023, L$228.77 billion in 2024, and L$251 billion in the first quarter of 2025.
The CBL also indicates that commercial bank capital grew from L$31.44 billion in 2022 to L$38.97 billion in 2023, L$45.15 billion in 2024, and L$47.6 billion in the first quarter of 2025, and the private sector, key to economic growth, job creation, innovation, and revenue, also experienced steady credit growth, rising from L$76.22 billion in 2022 to L$91.96 billion in 2023 and over L$100 billion in 2024, accounting for over 95% of the banking sector’s total credit portfolio.
Commercial bank profitability remains strong, with net income rising from L$4.20 billion in 2022, L$6.77 billion in 2023, and L$10.6 billion in 2024, the Bank further asserts.
According to the Bank, the strong liquidity ratio of 49.29 percent and capital adequacy ratio 33.8 percent, exceeding the regulatory thresholds by over 34.29 percentage points and 23.8 percentage points, are clear manifestation that Liberia’s banking sector remains stable, liquid, and well-positioned to support inclusive medium-term growth.
Meanwhile, the CBL also clarifies discrepancies identified in the graphical data presentation on page 10 and in Table 19: Financial Soundness Indicators on page 53 of its recently published 2024 Annual Report.
The CBL observes that the graphical representation of key banking sector balance sheet figures for the years 2022 and 2024 were inadvertently transposed in the 2024 Annual Report. This labeling issue created a visual impression of a contraction in the banking sector’s performance, which does not accurately reflect the actual financial position of the banking industry.
The Bank says it appreciates the expertise of stakeholders who analyzed the report and sincerely regrets the unintentional misrepresentation.
Immediate corrective actions are being taken, including the publication of a revised graph in the 2024 Annual Report on the Bank’s Website, and the implementation of measures to prevent future recurrence.
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