Banking and Finance

Banks wrote-off GH¢1.39bn as bad debt in 10-months of 2025

Dr Johnson Asiama, BoG Governor
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Banks operating in Ghana wrote-off GH¢1.39 billion as bad debt in the 10-months of 2025.

This was 56.7% more than the 1.0% increase in October 2024.

According to the Domestic Money Banks Income Statement, the total provision were made up of loan losses, depreciation & others.

In October 2024, the government wrote-off GH¢3.22 billion.

Meanwhile, the banking industry’s asset quality improved during the period under review.

The industry’s NPL ratio declined to 19.5% in October 2025, from 22.7% in October 2024. This ratio also improved from 9.4% in October 2024 to 6.8% at end-October 2025 when adjusted for the fully provisioned loan loss category.

This reflected a decrease share of sub-standard and an increase in doubtful and loss loans in the NPL stock.

The decline in the NPL ratio was due to the contraction in the stock of NPL and a modest pickup in credit.

Again, the banking industry’s NPL stock contracted by 6.2% to GH¢20.1 billion in October 2025 from GH¢21.4 billion in October 2024.

This showed the impact of increased write-offs and repayments as well as the appreciation of the Ghana Cedi.

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