Commercial banks in Ghana recorded GH¢1.23 billion in loan write-offs during the first half of 2026, representing a 38% increase over the GH¢893 million reported during the same period in 2025.
The figure, recorded under loan losses and depreciation, is contained in the Domestic Money Banks’ Income Statement and highlighted in the Bank of Ghana’s July 2026 Monetary Policy Report.
The report acknowledged improvements in some banking-sector indicators but warned that significant risks remain, particularly in relation to the quality of banks’ assets.
Although the industry’s non-performing loan (NPL) ratio declined from 23.1% in June 2025 to 16.1% in June 2026, the sector continues to face pressure from distressed credit. The NPL ratio, excluding fully provisioned loans, also fell from 8.5% to 4.6% over the period.
The overall value of non-performing loans decreased marginally from GH¢20.7 billion in June 2025 to GH¢19.9 billion in June 2026.
Despite the improvement, the Bank of Ghana maintained that asset quality remained a concern for the banking industry.
Private-sector borrowers accounted for the overwhelming majority of non-performing loans. Their share rose from 96.4% in June 2025 to 98.0% in June 2026.
By contrast, the public sector’s contribution to total NPLs dropped from 3.6% to 2.0% during the period under review.
The central bank explained that the distribution of non-performing loans broadly reflects the pattern of credit allocation across the various sectors of the economy.
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