Databank says banks' bad-loan ratio fell to 16.1% as capital strengthened

Pinned summary · as of 06:33

Ghana's banking sector closed the first half of 2026 with a smaller share of bad loans and a thicker capital cushion, according to Databank Research. The analysis says listed banks have resumed dividend payments, but the share of non-performing loans at certain lenders is still higher than the central bank allows.

What we know

• Databank Research said the sector's non-performing loans (NPLs) made up 16.1% of lending at the half-year mark of 2026, down from 23.1% a year earlier.
• The sector's capital adequacy ratio climbed from 19.7% in half-year 2025 to 20.4% in half-year 2026, and sector net income grew by about 4% over the same period, Databank Research said.
• Even after the fall, some banks still have NPL ratios higher than the level the Bank of Ghana sets as its limit.
• Databank Research linked the return of dividend payments, which followed regulatory approval, to much stronger capital buffers and continued profits even with lower interest rates.
• The firm said it prefers banks that combine solid capital, better loan books and earnings that hold up.

What's disputed / unconfirmed

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  Databank Research anticipates that investors will stay upbeat about bank shares, mainly because most listed banks are paying dividends. This is the firm's projection and not an outcome.
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  The firm also anticipates that lenders will step up efforts to recover bad loans and move towards the 10% limit set by the Bank of Ghana before the end of the year. Whether they reach it remains to be seen.
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  Databank Research said lower interest rates may squeeze the margins banks earn on interest during the latter half of 2026, while steady loan growth and rising demand for credit should support earnings, and it sees room for bank share prices to rise. These are projections by the firm.
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  The Ghana Report attributed to Databank Research the view that better asset quality shows the sector recovering from the Domestic Debt Exchange Programme (DDEP), and that NPLs should ease further as credit conditions normalise; the other report does not carry these points.

Why it matters for Ghana

Lower bad-loan ratios and bigger capital cushions give banks more room to lend, which matters to businesses and households looking for credit. Shareholders in listed banks are seeing dividends return. Databank Research itself points out that lower interest rates can cut both ways, easing costs for borrowers while narrowing what banks earn on lending.