The banking industry’s Non-Performing Loans (NPL) ratio increased to 21.8% in December 2024, up from 20.6 percent in December 2023.

According to the Bank of Ghana, the elevated credit risk remained the main upside risk to the banking sector.

However, the banking sector remained strong, robust and liquid.

This was supported by improved domestic macroeconomic conditions.

In its Monetary Policy Report, the Central Bank said the banking sector continues to be profitable, well-capitalised and liquid.

Assets of the banking sector grew by 33.8% in 2024 as Capital Adequacy Ratio (CAR) with reliefs grew marginally to 14.0% in December 2024 from 13.9% in December 2023.

However, CAR without reliefs rose to 11.3% in December 2024, higher than the 8.3% recorded in December 2023.

Profit Up

Meanwhile, profit of banks went up in 2024 relative to 2023, but the pace of growth slowed.

This resulted in the moderation of profitability indicators during the period.