Ghanaian banks write off 1.86 billion cedis in bad debts
By the AFREEQUE newsroom, based on Theghanareport
Banks operating in Ghana wrote off 1.86 billion cedis in bad debts by the end of August 2026, a 76.3% rise in one year, according to data published by the Bank of Ghana. Over the same period, the non-performing loan ratio fell to 15.7% from 20.8% a year earlier, while their total value edged up to 20.2 billion cedis.
Banks operating in Ghana wrote off 1.86 billion cedis in bad debts by the end of August 2026, compared with 1.05 billion a year earlier, an increase of 76.3%. The figure includes loan losses and depreciation, among other items, according to the banks’ income statement published by the Bank of Ghana.
At the same time, the sector’s operating expenses rose by 6.4% to 13.25 billion cedis. However, the non-performing loan ratio fell to 15.7%, from 20.8% in August 2025, while the adjusted ratio declined from 6.8% to 3.8%.
The stock of non-performing loans edged up to 20.2 billion cedis from 19.8 billion a year earlier, partly because of valuation effects on loans denominated in foreign currencies. The private sector accounted for 98% of these loans in August 2026, compared with 97.4% a year earlier, while the public sector’s share fell from 4% to 2%, according to the central bank.
These figures extend discussions on strengthening public finance controls in Ghana, covered in the previous report on public finance controls on 17 October.
Summary produced with the help of artificial intelligence tools, under AFREEQUE’s editorial responsibility.
