The Non-Performing Loan (NPL) ratio of banks operating in Ghana was 24.3% in August 2024, up from 20.0% in August 2023.

This is captured in the September 2024 Monetary Policy Committe (MPC) of the Bank of Ghana report.

The increase in NPLs is a reflective in the surge of defaults from large borrowers and highlighting that elevated credit risk remains the primary concern for the sector’s outlook.

On solvency, the Capital Adequacy Ratio (CAR) of the industry stood at 10.3% in August 2024, higher than the 7.5% recorded in August 2023.

With reliefs, the CAR was 13.8% in August 2024, compared to 14.2% in August 2023.

Liquidity and efficiency ratios also improved during the first eight months of the year, highlighting that broadly, key financial soundness indicators are improving in the banking sector and remaining positive

Meanwhile, the banking sector’s performance continued to improve, with assets growing at 38.7% at end-August 2024, compared to 19.6% in August 2023.

Both pre-tax and after-tax profits were higher in the first eight months of 2024 relative to the same period last year.