Commercial banks in Liberia recorded a combined profit of L$6.69 billion, equivalent to roughly US$34.45 million in the three months ended June 30, 2025, the Central Bank of Liberia reported in its latest Financial and Economic Bulletin.
The bulletin shows the banking sector expanded across key balance-sheet indicators in the quarter. Total assets rose to L$371.29 billion at end-June, up 6.9% from L$347.34 billion at end-March 2025 and up 16.7% year-on-year.
The Central Bank attributed the quarterly asset growth in part to large increases in checks for clearing (177.6% quarter-on-quarter) and accounts receivable (39.2%). On an annual basis, growth was also driven by higher holdings of short-term securities and other market instruments.
Loans and advances increased by 9.4% during the quarter, reaching L$116.12 billion from L$106.18 billion at end-March, reflecting additional credit facilities extended by banks.
The industry’s nonperforming loan ratio improved to 15.26%, down 3.5 percentage points from 18.8 percent in the prior quarter and down 2.58 percentage points versus the same period in 2024, a development the Central Bank said reflects recoveries of delinquent exposures.
Capital levels remained resilient. Industry capital rose 3.45% quarter-on-quarter to L$49.68 billion and was 12.7% higher than at end-June 2024.
Eight commercial banks reported capital above the minimum regulatory threshold of US$10 million. The sector’s capital adequacy ratio stood at a robust 35.5%, marginally higher than 35.4% in the previous quarter and up 4.2 percentage points year-on-year.
Liquidity and deposit metrics also strengthened, with total deposits and other funding sources expanding alongside asset growth. The Central Bank’s bulletin highlighted that improved earnings during the quarter contributed to the stronger capital base and overall stability of the industry.
The quarterly profit and the accompanying improvements in asset quality and capitalization signal continued recovery and consolidation in Liberia’s banking sector, the Central Bank said.
The regulator’s data will be closely watched by market participants as the industry steers lending growth, asset-quality repair and liquidity management heading into the second half of 2025.
