Banks operating in Ghana recorded GH¢1.23 billion in loan losses and depreciation during the first half of 2026, highlighting continued pressure on asset quality within the country’s banking sector.
Data from the Domestic Money Banks’ Income Statement shows that the amount written off increased by approximately 38% year-on-year, compared with the GH¢893.0 million recorded in June 2025.
The significant increase in loan loss provisions comes as Ghana’s banking industry continues to manage credit risks and challenges associated with non-performing loans.
According to the Bank of Ghana’s July 2026 Monetary Policy Report, asset quality risks in the banking sector remained elevated as of June 2026, despite improvements in some key banking sector indicators.
The report indicated that the non-performing loan (NPL) ratio of the banking industry declined significantly to 16.1% in June 2026, down from 23.1% in June 2025.
Similarly, the NPL ratio adjusted for the fully provisioned loan loss category improved to 4.6% in June 2026, compared with 8.5% recorded during the same period in 2025.
The decline in non-performing loans points to some improvement in bank asset quality and credit risk management. However, the continued high level of loan losses shows that Ghanaian banks remain exposed to challenges in recovering some loans.
The latest figures are expected to keep attention focused on Ghana’s banking sector performance, loan recovery, non-performing loans, credit risk and financial sector stability as banks work to strengthen their balance sheets.
Source: newsthemegh.com