UBA Ghana Leads Banks With Lowest NPL Ratio as ADB, NIB Remain Above 69%
Ghana’s banking sector continues to face an uneven recovery in asset quality, with some lenders maintaining relatively low levels of non-performing loans (NPLs), while others remain weighed down by significant credit risks.
UBA Ghana recorded the lowest non-performing loan ratio among the banks highlighted, at 2.1% at the end of 2025, followed by Fidelity Bank Ghana at approximately 6.1% and Guarantee Trust Bank Ghana at 7.1%.
The figures, contained in the Ghana Association of Banks’ Consolidated Banks’ Audited Financial Statements for 2025, point to significant differences in the quality of loan portfolios across the industry.
Zenith Bank Ghana also ended the year with an NPL ratio below 10%, at 8.5%, while Access Bank Ghana recorded 9.2%.
However, the relatively low ratios at some lenders contrast with the persistent credit challenges facing others, underscoring the uneven distribution of bad loans across the banking sector.
Despite their comparatively low NPL ratios, some banks recorded substantial increases in impaired credit during the year.
Access Bank Ghana’s NPL ratio rose sharply from 2.1% in 2024 to 9.2% in 2025, while Zenith Bank Ghana’s increased from 1.0% to 8.5%.
GT Bank Ghana also recorded an increase, with its ratio climbing from 2.4% to 7.1% over the same period.
Although these banks remained among the institutions with relatively low NPL ratios in 2025, the year-on-year increases point to emerging asset-quality pressures that could require closer monitoring.
The trend also highlights an important distinction in assessing banks’ credit performance: a relatively low NPL ratio provides a snapshot of current asset quality, but a sharp increase may signal deteriorating repayment conditions.
CalBank, meanwhile, recorded one of the most significant improvements among the banks highlighted, reducing its NPL ratio to 17.0% from 47.5% in 2024.
Prudential Bank also made progress, with its ratio falling to 57.0% from 74.0%.
While the improvements suggest a reduction in the proportion of loans classified as non-performing, both institutions continued to record elevated ratios at the end of 2025.
The most pronounced credit challenges were recorded at Agricultural Development Bank (ADB) and National Investment Bank (NIB), which ended 2025 with NPL ratios of 70.5% and 69.7%, respectively.
ADB’s ratio declined from 75.3% in 2024, while NIB’s fell from 75.5%. Despite the reductions, non-performing loans continued to account for a substantial proportion of their respective loan portfolios.
Universal Merchant Bank also remained under pressure, recording an NPL ratio of 52.3%, down from 54.9% a year earlier.
Consolidated Bank Ghana experienced a deterioration in asset quality, with its ratio rising to 33.4% from 12.5%. Stanbic Bank Ghana also recorded an increase, from 17.1% to 24.6%.
The contrasting movements reveal a banking sector in which progress in managing impaired credit remains uneven.
While some institutions have reduced their exposure to non-performing loans, others are experiencing rising impairment levels or continue to carry substantial legacy credit risks.
High NPL ratios can weigh on banks’ earnings through impairment charges, tie up capital and limit their ability to extend fresh credit.
They can also weaken lenders’ capacity to support businesses and households, particularly when credit risks are accompanied by funding or liquidity constraints.
However, NPL ratios should not be viewed in isolation. Capital adequacy, liquidity, profitability, loan-loss provisions and the extent to which bad debts are covered by collateral are also important in assessing a bank’s overall financial position.
The asset-quality figures come amid concerns by the Ghana Association of Banks over persistent delays in remitting salary deductions intended to repay loans contracted by public sector workers.
The association’s Chief Executive Officer, John Awuah, has indicated that banks could suspend new lending to public sector workers in the coming weeks if the outstanding remittances remain unresolved.
The proposed measure is intended to address the financial risks arising from delays in transferring deductions already made from workers’ salaries to the banks.
Such delays can disrupt loan repayment schedules and expose lenders to cash-flow pressures and potential credit impairment, particularly where repayments depend on deductions at source.
A suspension of new lending, if implemented, could also affect public sector workers who rely on salary-backed loans to meet personal and household financing needs.
The situation highlights the importance of effective coordination between employers, government institutions and financial institutions in ensuring that deducted loan repayments are transferred promptly.
Also, the combination of elevated NPL ratios at some institutions and concerns over repayment remittances reinforces the need for stronger credit-risk management and effective loan recovery mechanisms.
The 2025 figures ultimately show that improvements in asset quality have not been uniform across the industry.
While some lenders entered 2026 with relatively low NPL ratios, others continue to face significant challenges in recovering impaired loans and strengthening their balance sheets.
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