Ghana’s banking sector continues to experience an uneven recovery in asset quality, with some institutions maintaining relatively low levels of non-performing loans (NPLs), while others remain burdened by significant credit risks despite improvements recorded during 2025.
UBA Ghana emerged as the bank with the lowest NPL ratio among the institutions highlighted, recording 2.1% at the end of December 2025. Fidelity Bank Ghana followed with approximately 6.1%, while Guaranty Trust Bank Ghana recorded 7.1%.
The figures, contained in the Ghana Association of Banks’ Consolidated Banks’ Audited Financial Statements for 2025, reveal considerable differences in the performance of loan portfolios across the industry.
Zenith Bank Ghana and Access Bank Ghana also maintained NPL ratios below 10%, ending the year at 8.5% and 9.2%, respectively.
However, the relatively favourable positions of these lenders contrast with the challenges confronting other institutions, highlighting the uneven distribution of impaired loans across Ghana’s banking sector.
Rising NPL ratios raise concerns at some banks
Despite maintaining comparatively low NPL ratios, several banks experienced significant deterioration in asset quality during the year.
Access Bank Ghana’s NPL ratio increased sharply from 2.1% in 2024 to 9.2% in 2025. Zenith Bank Ghana recorded a similar trend, with its ratio rising from 1.0% to 8.5%.
GT Bank Ghana also experienced an increase, as its NPL ratio climbed from 2.4% to 7.1% over the same period.
Although the three institutions remained among the banks with relatively low NPL ratios in 2025, the increases point to mounting pressure on their loan portfolios and the need for stronger credit-risk monitoring.
A low NPL ratio provides an indication of a bank’s current asset quality, but a sharp year-on-year increase may signal emerging difficulties in borrowers’ ability to meet repayment obligations.
Meanwhile, CalBank recorded one of the most significant improvements among the institutions highlighted, reducing its NPL ratio from 47.5% in 2024 to 17.0% in 2025.
Prudential Bank also made progress, with its ratio declining from 74.0% to 57.0%.
Despite these improvements, both banks continued to face elevated levels of non-performing loans at the end of the reporting period.
ADB, NIB remain under pressure
Agricultural Development Bank (ADB) and National Investment Bank (NIB) recorded some of the highest NPL ratios in the sector, ending 2025 at 70.5% and 69.7%, respectively.
ADB’s ratio declined from 75.3% in 2024, while NIB’s fell from 75.5%. Nevertheless, non-performing loans continued to represent a substantial proportion of both institutions’ loan portfolios.
Universal Merchant Bank also remained under pressure, although its NPL ratio improved from 54.9% to 52.3%.
In contrast, Consolidated Bank Ghana experienced a deterioration in asset quality, with its NPL ratio rising from 12.5% in 2024 to 33.4% in 2025.
Stanbic Bank Ghana also recorded an increase, from 17.1% to 24.6% over the same period.
The differing performances illustrate the challenges facing the industry as banks work to recover impaired loans, strengthen their balance sheets and manage emerging credit risks.
High NPL ratios can weaken profitability through increased loan-impairment charges, tie up capital and constrain the ability of lenders to extend fresh credit to businesses and households.
However, NPL ratios alone do not provide a complete picture of a bank’s financial health. Capital adequacy, liquidity, profitability, loan-loss provisions and collateral coverage are also important considerations.
Salary deduction delays compound lending concerns
The asset-quality figures come amid concerns raised by the Ghana Association of Banks over persistent delays in remitting salary deductions intended to repay loans contracted by public sector workers.
The association’s Chief Executive Officer, John Awuah, has indicated that banks could suspend new lending to public sector workers in the coming weeks if outstanding remittances remain unresolved.
The concern centres on delays in transferring funds already deducted from workers’ salaries to the financial institutions owed the repayments.
Such delays can disrupt repayment schedules, create cash-flow difficulties for lenders and potentially contribute to loan impairment, particularly where repayment arrangements depend on deductions at source.
A suspension of new lending, if implemented, could affect public sector workers who depend on salary-backed facilities to finance household expenses and other personal needs.
The situation underscores the importance of effective coordination among employers, government institutions and financial institutions to ensure that deducted repayments are transferred promptly.
The combination of high NPL ratios at some banks and concerns over delayed remittances reinforces the need for stronger credit-risk management, efficient loan recovery and improved repayment systems.
Overall, the 2025 figures indicate that Ghana’s banking sector entered 2026 with markedly different asset-quality positions. While some lenders maintained relatively low levels of non-performing loans, others continued to face substantial credit challenges, highlighting the need for sustained efforts to strengthen loan recovery and financial stability.
