Banks operating in Ghana wrote off GH¢1.86 billion in bad debts as of August 2026, representing a 76.3% increase compared with the GH¢1.05 billion recorded during the same period in 2025.
According to the banks’ income statement published by the Bank of Ghana (BoG), the amount covers loan losses, depreciation and other related expenses incurred by financial institutions.
The latest figures highlight the continued financial pressures facing Ghana’s banking sector, despite improvements in key asset quality indicators.
Ghana Banks’ Operating Expenses Increase
The operating expenses of banks in Ghana also increased by 6.4%, reaching GH¢13.25 billion in August 2026.
The rise in expenditure reflects the costs incurred by banks in maintaining their operations, although the published figures do not specify how much each expense category contributed to the increase.
Non-Performing Loans Decline in Ghana’s Banking Sector
Despite the increase in bad debt write-offs, Ghana’s banking sector recorded an improvement in non-performing loan (NPL) ratios during the period under review.
The overall NPL ratio declined to 15.7% in August 2026, down from 20.8% recorded in August 2025.
Similarly, the adjusted NPL ratio improved significantly, falling to 3.8% from 6.8% over the same period.
The decline in both indicators suggests an improvement in measured loan asset quality, even as banks continue to account for credit losses.
The developments provide an important picture of Ghana’s banking industry, where rising bad debt expenses and operating costs coexist with improving loan performance indicators.
Source: newsthemegh.com