Banks write off GH¢394.8m in bad debts in February 2026

Banks in Ghana wrote off GH¢394.8 million in bad loans in February 2026, a 43.4% increase compared to GH¢275.2 million in the same period in 2025.

The write-offs covered loan losses, depreciation, and bad debts, according to industry data.

Despite the rise in bad debt provisions, overall loan quality showed some improvement.

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The Bank of Ghana’s March 2026 Monetary Policy Report noted that the Non-Performing Loan (NPL) ratio fell to 18.4% in February 2026, down from 22.6% a year earlier.

The adjusted NPL ratio, which excludes fully provisioned loans, also declined from 8.9% to 5.4%.

In addition, the total stock of non-performing loans dropped by 5.8% to GH¢19.9 billion, compared to a 14.9% increase recorded in February 2025.

Most of the bad loans came from the private sector, which accounted for 98.1% of NPLs in February 2026, up from 96.2% the previous year. Meanwhile, the public sector’s share declined to 1.9% from 3.8%.

Overall, while banks are writing off more bad loans, there are signs that loan quality is gradually improving.

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