ADB and GT Bank report highest NPL ratios in sector-wide survey, as economic strain tests Ghana’s banking system resilience
Two commercial banks in Ghana — Agricultural Development Bank (ADB) and Guaranty Trust Bank (GT Bank) — have recorded non-performing loan (NPL) ratios above 60%, according to newly released first-quarter data from the C-NERGY Bank Sector Report, underscoring severe credit risk challenges within parts of the country’s financial sector.
The report, which aggregates insights from official financial filings of more than 20 licensed banks, reveals sharp divergences in asset quality among Ghanaian banks in Q1 2025. While the industry average NPL ratio stood at 22.6%, both ADB and GT Bank surpassed the 60% mark, raising concerns about portfolio deterioration, provisioning adequacy, and systemic vulnerabilities.
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“Loan book performance in the sector has bifurcated sharply,” said analysts at C-NERGY. “While some institutions remain relatively insulated, others are exposed to significant default risks linked to macroeconomic and institutional pressures.”
Macroeconomic Pressures Weigh on Loan Portfolios
C-NERGY attributes elevated loan defaults to persistent inflationary pressures, weak recovery systems, and sector-specific headwinds in agriculture, construction, and public contracting. Additionally, delayed payments from government clients and elevated lending rates have increased the financial burden on borrowers, leading to rising delinquencies.
The NPL ratio, which tracks loans overdue by more than 90 days, serves as a critical barometer of a bank’s risk exposure and operational health. Institutions with high NPLs typically face higher provisioning costs, tighter regulatory scrutiny, and potential capital adequacy concerns.
Widening Gap in Sector Performance
The report highlights a growing stratification across the banking industry:
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Top-Tier Banks with Strong Asset Quality
Access Bank, Zenith Bank, UBA, and First National Bank (FNB) all maintained NPL ratios below 10%, signaling robust credit controls and diversified loan books. -
Mid-Tier Institutions with Manageable Risk
Banks such as Ecobank, Republic Bank, Fidelity Bank, and Consolidated Bank Ghana (CBG) reported NPL ratios between 15% and 30%, pointing to moderate credit pressure but still within regulatory thresholds. -
High-Risk Lenders Nearing Critical Levels
Bank of Africa, OmniBSIC, and National Investment Bank (NIB) were cited with NPLs ranging from 40% to 55%, hovering near red-zone thresholds and raising potential concerns about portfolio sustainability. -
Outliers – ADB and GT Bank
At above 60%, both ADB and GT Bank now operate in what C-NERGY describes as a “high-risk default cluster,” necessitating immediate strategic intervention, stronger loan recovery enforcement, and capital reinforcement.
Implications for the Sector and Economy
The findings come amid renewed scrutiny of the banking sector’s resilience following recent domestic debt restructuring and a slowdown in economic momentum. While Ghana’s broader fiscal indicators are stabilizing, credit transmission and private sector lending remain constrained.
Analysts warn that unchecked asset quality erosion in a few institutions can have spillover effects on interbank confidence, investment sentiment, and regulatory risk assessments. The Bank of Ghana, which has ramped up sector surveillance in recent quarters, is expected to respond with targeted supervision for institutions breaching critical thresholds.
Accra Street Journal will continue monitoring developments in the sector, particularly policy responses and capital adequacy adjustments following the publication of C-NERGY’s findings.
Last Updated on March 14, 2026 by Samuel Kwame Boadu
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Samuel Kwame Boadu is a Ghanaian media entrepreneur and storyteller with a passion for amplifying urban voices and uncovering everyday truths. He is the Editor-in-Chief and Founder of Accra Street Journal, a dynamic digital platform dedicated to capturing the pulse of Ghana’s capital—its people, culture, challenges, business, sports and innovations.
