Ghana’s banking sector is entering 2026 with sharply contrasting credit-risk positions, as some lenders maintain relatively healthy loan portfolios while others continue to grapple with high levels of non-performing loans (NPLs), according to audited financial statements for 2025.
The figures from the Ghana Association of Banks show that Agricultural Development Bank (ADB) and National Investment Bank (NIB) remain among the institutions facing the heaviest burden of bad loans, with NPL ratios of 70.5% and 69.7%, respectively, at the end of last year.
Their positions contrast sharply with United Bank for Africa (UBA) Ghana, which recorded the lowest NPL ratio among the banks highlighted, at 2.1%, reflecting a wide gap in reported asset quality across the industry.
The data point to an uneven recovery in the banking sector, with some institutions making progress in reducing impaired credit while others have experienced deteriorating loan performance or remain burdened by significant legacy debts.
ADB, NIB struggle despite marginal improvements
ADB’s NPL ratio declined from 75.3% in 2024 to 70.5% in 2025, while NIB recorded a reduction from 75.5% to 69.7% over the same period.
Although the declines suggest some improvement, the proportion of non-performing loans at both institutions remains high, highlighting the continuing challenge of recovering troubled debts and improving the quality of their loan portfolios.
Universal Merchant Bank (UMB) also remained under pressure, with its NPL ratio falling slightly from 54.9% to 52.3%.
Prudential Bank recorded a more notable decline, reducing its ratio from 74.0% in 2024 to 57.0% in 2025. CalBank posted one of the strongest improvements among the institutions highlighted, cutting its NPL ratio from 47.5% to 17.0%.
Despite these reductions, the figures show that improvements in asset quality do not necessarily mean the underlying credit challenges have been fully resolved.
UBA leads banks with lowest bad-loan ratios
At the other end of the spectrum, UBA Ghana recorded an NPL ratio of 2.1%, followed by Fidelity Bank Ghana at approximately 6.1% and Guaranty Trust Bank Ghana at 7.1%.
Zenith Bank Ghana and Access Bank Ghana also ended 2025 with ratios below 10%, at 8.5% and 9.2%, respectively.
The relatively low figures indicate that these banks had smaller proportions of their reported loan portfolios classified as non-performing compared with institutions carrying much higher ratios.
However, the year-on-year movements at some of these lenders point to emerging risks that warrant attention.
Access Bank Ghana’s NPL ratio rose from 2.1% in 2024 to 9.2% in 2025, while Zenith Bank Ghana recorded an increase from 1.0% to 8.5%.
GT Bank Ghana’s ratio also climbed, rising from 2.4% to 7.1%.
The increases suggest that even banks with comparatively low NPL ratios can experience a rapid deterioration in loan performance. Their asset quality will therefore need to be assessed not only by their year-end positions but also by the direction and pace of changes in their credit portfolios.
Other banks record deterioration in loan quality
The financial statements also point to worsening asset quality at some other institutions.
Consolidated Bank Ghana’s NPL ratio increased significantly from 12.5% in 2024 to 33.4% in 2025, while Stanbic Bank Ghana’s ratio rose from 17.1% to 24.6%.
These increases contrast with the improvements recorded by CalBank, Prudential Bank and other lenders, reinforcing the uneven nature of credit-risk management outcomes across the industry.
A rising NPL ratio can increase the amount banks need to set aside for potential loan losses, putting pressure on earnings and potentially affecting their capacity to extend new credit.
Where bad loans remain unresolved for extended periods, they may also tie up financial resources that could otherwise support lending to businesses and households.
Nevertheless, NPL ratios alone do not provide a complete picture of a bank’s financial health. Capital adequacy, liquidity, profitability, loan-loss provisions, collateral coverage and recovery prospects are also important in determining the extent of the risks facing individual institutions.
Salary deduction delays add another layer of risk
The asset-quality figures come amid concerns raised by the Ghana Association of Banks over delays in remitting salary deductions intended to repay loans taken 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 are not resolved.
The concern centres on delays in transferring deductions already taken from workers’ salaries to the financial institutions that provided the loans.
Where repayments are deducted at source but not promptly remitted, banks may face cash-flow disruptions and uncertainty over the timely servicing of affected loans.
A suspension of new salary-backed lending, if implemented, could also affect public sector employees who depend on such facilities to meet household expenses and other financial commitments.
The situation underscores the need for government institutions, employers and banks to strengthen coordination and ensure that deductions made for loan repayments reach the intended lenders without unnecessary delays.
Credit recovery remains critical for the sector
The 2025 financial results highlight the importance of sustained efforts to improve loan recovery and strengthen credit-risk management across Ghana’s banking industry.
While UBA Ghana, Fidelity Bank Ghana and GT Bank Ghana reported comparatively low NPL ratios, the sharp increases recorded by some lenders demonstrate that asset quality can change considerably within a year.
At the same time, the high ratios at ADB, NIB and UMB show that substantial challenges remain for institutions dealing with large volumes of impaired credit.
The extent to which banks can recover outstanding debts, manage new lending risks and maintain adequate financial buffers will be important in determining their capacity to support economic activity.
Ultimately, the figures reveal a banking sector moving at different speeds in addressing bad loans, with the performance of individual institutions depending on their ability to contain emerging risks and make lasting progress in recovering impaired assets.
