Banking sector NPLs fall to GH¢19.9bn as asset quality improves

The Ghanaian banking sector's non-performing loans (NPLs) fell to GH¢19.9 billion by the end of June 2026, down from GH¢20.7 billion a year earlier, according to the Bank of Ghana. This decline resulted in a significant improvement in the NPL ratio, which decreased to 16.1% in June 2026 from 23.1% in June 2025. The NPL ratio, adjusted for the fully provisioned loan loss category, also fell to 4.6% from 8.5% over the same period.

The majority of non-performing loans continue to be held by the private sector, which accounted for 98% of total NPLs in June 2026, an increase from 96.4% in the previous year. The public sector's contribution to NPLs fell from 3.6% to 2%. Despite this improvement, the agricultural sector experienced a deterioration in asset quality, with the NPL ratio rising to 65.1% in June 2026 from 59.1% in June 2025.

However, improvements in other sectors more than offset this deterioration, resulting in an overall strengthening of the banking industry's asset quality.

Brief written by urgent.news from Joy Business's own syndicated text. Machine-written — may contain errors; check the original before relying on it.