Banks in Ghana wrote off GH¢1.64 billion in bad loans in 2025, representing a significant 57.1% decline compared to the previous year, according to the latest banking sector data from the Bank of Ghana (BoG).
Figures contained in the Domestic Money Banks Income Statement show that banks had earlier made provisions amounting to GH¢3.82 billion in 2024 to cover potential losses, including bad debts, depreciation, and other related expenses.
Despite the reduction in write-offs, concerns over asset quality in the banking sector remain. The Bank of Ghana’s January 2026 Banking Developments Report indicates that risks related to asset quality remained elevated at the end of December 2025.
However, there was some improvement in the industry’s Non-Performing Loans (NPL) ratio. The ratio declined to 18.9% in December 2025, down from 21.8% recorded in December 2024.
When adjusted to exclude fully provisioned loan losses, the NPL ratio improved further, falling from 8.5% in December 2024 to 5.0% in December 2025.
While the ratio declined, the total value of non-performing loans increased slightly. The stock of NPLs rose by 0.8% to GH¢21.0 billion in December 2025, compared to the sharp 31.4% growth recorded a year earlier.
A breakdown of the figures shows that the private sector continues to account for the overwhelming majority of bad loans in the banking industry. Its share of total NPLs increased to 97.5% in December 2025 from 96.2% in the previous year. In contrast, the public sector’s share declined from 3.8% to 2.5% over the same period.
The central bank also noted mixed developments across sectors. While most sectors recorded improvements in asset quality, the construction and agriculture sectors saw worsening loan performance.
The NPL ratio in the construction sector rose from 29.8% to 30.7%, while the agriculture, forestry, and fishing sector recorded a sharper increase from 38.0% to 46.3%.
According to the Bank of Ghana, the overall decline in the NPL ratio reflects gradual improvements in loan quality across most sectors of the economy during the review period.
