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.
Latest Stories
-
Adjetey Anang suggests actors can fight ‘galamsey’ better through stories than protests
19 mins -
The 8 is with me, let NPP break it if they can – Mahama on position on ballot paper
28 mins -
Keta Port CEO not drawing unearned salary; he’s also Tema Ship Yard CEO – NEIP CEO to Joyce Bawah
36 mins -
GPRTU partners CorpNation Foundation to tackle plastic waste at lorry stations
42 mins -
RYTHM foundation: QNET’S CSR arm targets equity and equality for people with disabilities in Ghana in 3-year project with Anopa
47 mins -
Democracy Hub protest: Tampering with key to a police van is criminal – Antwi-Danso
49 mins -
QNET meets West African journalists in Malaysia to explain business model and stakeholder relations efforts
50 mins -
POJOBA ’84 year group clears bills of detained patients at E/R Hospital
55 mins -
WASSCE invigilators fined, others remanded- WAEC
59 mins -
BoG launches gold coins as new investment option
1 hour -
VRA alarmed over IPPs’ demand for increased payments under Cash Waterfall Mechanism
1 hour -
Economic activity pickup, consumer confidence improves – BoG
2 hours -
Audit is not evil, It builds integrity! Embrace it to ensure transparent elections!
2 hours -
NPL ratio of banks increased to 24.3% in August 2024
2 hours -
Free SHS has brought immense relief to us and our children – Denkyira Traditional Council
2 hours