Which bank has Ghana's cleanest loan book? Which has the worst?

Introduction

Asset quality remains one of the most important indicators of banking sector stability. In Ghana, non-performing loans (NPLs) have long constrained profitability, weakened capital positions, and limited banks' ability to expand lending. The FY2025 financial statements provide a fresh view of how individual banks are managing credit risk and how close the industry is to meeting the Bank of Ghana's ambitious target of reducing sector-wide NPLs to 10% by the end of 2026.

Ranking Banks in Ghana by Non Performing Rations (2025 Financial Year)

What Are Non-Performing Loans?

A non-performing loan is a loan on which borrowers have failed to make scheduled principal or interest payments, typically for at least 90 days. High NPL ratios signal deteriorating credit quality, reduce interest income, increase loan loss provisions, and ultimately weaken a bank's profitability and capital adequacy.

FY2025 Banking Sector Snapshot

According to published FY2025 financial statements, the sector-wide gross NPL ratio declined to 18.9%, down from 21.8% in FY2024. While this represents a meaningful improvement, the industry remains significantly above the Bank of Ghana's 10% target.

Only 5 of the 23 disclosed banks currently satisfy the regulator's benchmark, highlighting that asset quality remains a major challenge for most institutions.

Banks with the Highest NPL Ratios

Agricultural Development Bank (ADB) recorded the highest NPL ratio at 70.5%, followed by National Investment Bank (69.7%), Prudential Bank (65.2%), UMB (52.3%), and Consolidated Bank Ghana (33.4%). These figures indicate substantial credit quality challenges that may require stronger recoveries, improved underwriting standards, and tighter risk management.

Strong Performers

UBA Ghana recorded the lowest NPL ratio at 2.1%, followed by First Bank Ghana (6.1%), Fidelity Bank (7.1%), GTBank Ghana (7.1%), Zenith Bank Ghana (8.5%), and Access Bank Ghana (9.2%). Most of these institutions are subsidiaries of Nigerian banking groups, reflecting comparatively stronger loan portfolio performance.

Ownership Trends

A notable pattern emerges across the rankings. Nigerian-owned banks dominate the lowest NPL category, while the five highest NPL ratios belong to Ghanaian-owned institutions. Although ownership alone does not determine asset quality, the trend highlights differences in credit risk management, portfolio composition, and lending practices that merit further analysis.

Why the Difference Between 18.9% and 23.4%?

The Bank of Ghana's official 18.9% figure is calculated using an asset-weighted methodology that reflects the size of each bank's loan portfolio. The 23.4% figure shown in the visual is a simple arithmetic average across the 23 disclosed banks, giving each institution equal weight regardless of size. Both measures are valid but answer different analytical questions.

Outlook

The decline in sector-wide NPLs demonstrates that Ghana's banking industry is making progress. However, with nearly four out of every five disclosed banks still above the regulatory benchmark, sustained improvements in credit underwriting, loan monitoring, and recovery strategies will be essential if the sector is to meet the Bank of Ghana's end-2026 target.

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