The stock of non-performing loans (NPLs) in Ghana’s banking sector declined to GH¢19.9 billion at the end of June 2026, down from GH¢20.7 billion a year earlier.
The report indicates that the stock of non-performing loans (NPLs) in Ghana’s banking sector declined to GH¢19.9 billion at the end of June 2026, down from GH¢20.7 billion a year earlier.
It further notes that new data from the Bank of Ghana show that the industry’s NPL ratio also improved significantly, falling to 16.1% in June 2026 from 23.1% in June 2025.
The NPL ratio, adjusted for the fully provisioned loan loss category, similarly declined to 4.6% from 8.5% over the period.
Private sector borrowers continued to account for the overwhelming majority of non-performing loans in the banking industry.
The private sector’s share of total NPLs increased to 98% in June 2026 from 96.4% a year earlier.
By contrast, the public sector’s contribution fell from 3.6% to 2%.
“The distribution of NPLs remains broadly consistent with the sectoral composition of industry credit exposures,” the Bank of Ghana report stated.
The central bank stated asset quality strengthened broadly across the banking industry during the period, supporting the decline in the overall NPL ratio.
The improvement was recorded across most sectors, except agriculture, forestry and fishing.
The NPL ratio for that sector increased to 65.1% in June 2026 from 59.1% in June 2025.
The Bank of Ghana, however, stated improvements in other sectors more than offset the deterioration in agriculture, resulting in an overall strengthening of the banking industry’s asset quality.
According to the Bank of Ghana, the improvement was driven by reductions in both the stock of non-performing loans and the overall NPL ratio.
The central bank stated the stronger performance of the credit portfolio reflected enhanced loan recovery efforts and improved credit risk management practices.
It added that the developments point to better credit risk conditions, although vulnerabilities in asset quality remain a concern.
