Banks operating in Ghana wrote off GH¢1.23 billion in loan losses and depreciation in the first half of 2026, representing a 38% year-on-year increase from the GH¢893.0 million recorded during the same period in 2025.
The figures are contained in the highlights of the Domestic Money Banks’ Income Statement.
Despite the significant increase in loan-loss provisions, the Bank of Ghana says key asset quality indicators in the banking sector improved in June 2026, although risks remained elevated.
According to the July 2026 Monetary Policy Report, the industry’s non-performing loan (NPL) ratio fell to 16.1% in June 2026, from 23.1% a year earlier.
Similarly, the NPL ratio adjusted for the fully provisioned loan-loss category declined from 8.5% to 4.6% over the same period.
The stock of non-performing loans also decreased marginally, falling to GH¢19.9 billion in June 2026, compared with GH¢20.7 billion in June 2025.
The Bank of Ghana said the developments indicate an improvement in credit risk conditions, although vulnerabilities in asset quality continue to pose concerns for the banking sector.
Private sector dominates bad loans
The breakdown of non-performing loans shows that the private sector continues to account for the overwhelming majority of bad loans within the banking industry.
The private sector’s share of total NPLs increased to 98.0% in June 2026, from 96.4% in June 2025.
By comparison, the public sector’s contribution declined from 3.6% to 2.0% over the same period.
The Bank of Ghana noted that the distribution of NPLs remains broadly consistent with the sectoral composition of credit exposures across the banking industry.
The figures suggest that while the overall quality of banks’ loan portfolios has improved, credit risks remain concentrated in private-sector lending, requiring continued monitoring and effective credit-risk management by banks.
