As commercial banks posted a profit-after-tax of about GH¢9.7 billion, a 46.1% jump compared to GH¢6.7 billion recorded during the same period in 2024, private sector credit-to-Gross Domestic Product (GDP) gap remained negative at all-time in the first eight months of 2025.
According to the September 2025 Monetary Policy Report, the sector posted gains across all income lines, with other income surging 47.3% in August 2025, reversing a 2.9% contraction recorded a year earlier.
Other indicators, such as net interest income rose 21.8% to GH¢19.2 billion, up from GH¢16.9 billion in August 2024, driven by a slowdown in interest expenses due to lower interbank lending rates. On a year-on-year basis, interest income increased 21.5% to GH¢29.3 billion, while interest expenses climbed to GH¢10.2 billion from GH¢8.4 billion, representing 20.9% growth — slightly below the 22.1% growth in August 2024.
Overall, profitability indicators strengthened, with return-on-equity (ROE) increasing from 31.4% in August 2024 to 32.2% in August 2025, and return-on-assets (ROA) improving from 4.9% to 5.6% over the same period — underscoring the industry’s robust recovery and stronger balance sheet performance.
Private sector credit-to-GDP gap at all time low
Although, the Banking Sector Soundness Index was significantly above the long-term trend, nearing the pre-DDEP level, reflecting an improving solvency positions, adequate liquidity and strong earnings performance. However, the private sector credit-to-GDP gap is at an all-time low.
The ratio is another measure of macro-financial risk. A positive credit-to-GDP gap indicates that total private sector credit extension relative to the size of the economy is above its long-term trend and vice versa.
“Ghana’s credit-to-GDP remains negative and declining, suggesting the need for measures to promote credit delivery to support the real economy”, the central bank disclosed in its September 2025 Monetary Policy Report.
NPLs ratio expected to improve
The Bank reported that the non-performing loans ratio, though marginally improved, remained elevated.
That notwithstanding, the report said the ongoing macroeconomic recovery, supported by the implementation by banks on how to reduce Non-Performing Loans (NPLs), should help moderate the build-up of new non-performing loans and improve overall asset quality.
However, provisions for depreciation, bad debts, and impairment losses contracted sharply by 46%, against a 19.2% contraction in 2024, on account of higher recoveries and write-offs.
The report further noted that net fees and commissions grew 13.1% by August 2025, down from 22.9% a year earlier, while overall net operating income expanded by 28%, compared to 10.9% growth in 2024.
Operating expenses also increased moderately, rising 19.5% compared to 18.9% in the previous year, reflecting marginal growth in staff and administrative costs.
By Adnan Adams Mohammed
