Banks operating in Ghana recorded GH¢1.23 billion in loan write-offs during the first half of 2026, highlighting continued asset quality challenges within the country’s banking sector.
According to the Domestic Money Banks’ Income Statement, the amount represented a 38% year-on-year increase compared with the GH¢893.0 million recorded in June 2025.
The provisions were classified under loan losses and depreciation, reflecting the continued financial risks faced by banks as they manage credit-related challenges.
Ghana Banking Sector Faces Elevated Asset Quality Risks
The July 2026 Monetary Policy Report indicated that asset quality risks remained elevated in Ghana’s banking sector as of June 2026, despite improvements in several key indicators.
One of the major improvements was recorded in the industry’s non-performing loan (NPL) ratio, which declined from 23.1% in June 2025 to 16.1% in June 2026.
The decline suggests an improvement in the overall quality of bank loans, although the level of non-performing loans remains a significant concern for financial institutions and regulators.
Non-Performing Loans Improve
The banking sector also recorded an improvement in the NPL ratio after adjusting for the fully provisioned loan loss category.
The adjusted NPL ratio fell from 8.5% in June 2025 to 4.6% in June 2026, indicating a notable improvement in the underlying asset quality of Ghanaian banks.
Despite these positive developments, the continued increase in loan write-offs underscores the need for banks to maintain strong credit risk management, loan recovery strategies and financial stability measures.
The performance of asset quality indicators remains important for the resilience of Ghana’s banking sector, particularly as financial institutions continue to manage credit risks and strengthen their balance sheets.
The latest figures provide an important update on the health of the Ghana banking sector, with declining NPL ratios offering some positive signs while the rise in loan losses highlights ongoing challenges for commercial banks.
Source: newsthemegh.com