Ghana’s banking sector is tightening its grip on bad loans as the Non-Performing Loan (NPL) ratio dipped to 22.6% in February 2025, signaling a gradual recovery.
Ghana’s NPL ratio fell to 22.6% in February 2025. Private sector credit grew 26.9%, while bank assets, solvency, liquidity, and profitability improved. Capital Adequacy Ratio reached 14.4%
The Ghanaian banking industry’s Non-Performing Loan (NPL) ratio declined to 22.6% in February 2025 from 24.6% in February 2024.
Excluding the loans in the loss category, which are fully provisioned, the NPL ratio as of the end of February 2025 was 8.9%. According to the Monetary Policy Committee (MPC) report, private sector credit is beginning to show signs of recovery.
In February 2025, the private sector credit recorded 26.9% annual growth compared with 5.1% in February 2024. In real terms, credit growth was 3.1%, compared with a decline of 14.7% in February 2024.
Overall, the Financial Soundness Indicators showed broad improvements in asset growth, solvency, liquidity, efficiency, and profitability.
Meanwhile, the banking sector performance continued to improve. Total bank assets recorded 34.0% growth at the end of February 2025 relative to 12.1% growth in the same period last year.
With regulatory reliefs, the banking industry’s Capital Adequacy Ratio (CAR) was higher at 14.4% compared to 13.6% in the same period last year. Without relief, the CAR was 12.1%.
