Savings and Loans Sector Profit Jumps to GH¢515.3m
Ghana’s Savings and Loans industry recorded a sharp improvement in financial performance in 2025, posting a profit of GH¢515.32 million, while non-performing loans declined significantly, reflecting improving asset quality and stronger operational performance.
According to the Bank of Ghana’s 2025 Annual Report and Financial Statements, the sub-sector’s profit increased from GH¢141.57 million in 2024 to GH¢515.32 million in 2025, representing a more than threefold increase.
The report also showed continued improvements in the industry’s financial soundness, although capital levels remained below the regulatory requirement.
The sector’s Capital Adequacy Ratio (CAR) improved to 3.5 per cent at the end of December 2025 from negative 0.6 per cent a year earlier. Despite the improvement, the ratio remains well below the Bank of Ghana’s minimum prudential requirement of 10 per cent, indicating that institutions in the sector still need to strengthen their capital buffers.
Asset quality also improved during the review period. The industry’s Non-Performing Loan (NPL) ratio declined to 11.8 per cent in December 2025 from 15.0 per cent at the end of 2024, suggesting enhanced credit risk management and improved loan recovery efforts across the sector.
The Bank of Ghana reported that the total number of licensed Savings and Loans companies remained unchanged at 26 by the end of December 2025.
The industry’s balance sheet also expanded significantly, with total assets rising by 31.2 per cent year-on-year to GH¢12.63 billion, reflecting increased lending activities, stronger deposit mobilisation and overall business growth.
The central bank also highlighted continued expansion within Ghana’s microfinance industry.
According to the report, the total number of licensed Microfinance Institutions (MFIs) stood at 172 at the end of December 2025.
The sector’s total assets increased by 55.5 per cent to GH¢3.06 billion, significantly higher than the 35.7 per cent growth recorded in the previous year, indicating sustained expansion in financial intermediation at the community level.
Deposits mobilised by microfinance institutions also recorded robust growth, rising by 27.8 per cent during the year, reflecting growing public confidence in the sub-sector and increased savings mobilisation.
The report further indicated that the average Capital Adequacy Ratio for the microfinance industry stood at 22.1 per cent, comfortably above the regulatory minimum, while the Non-Performing Loan ratio was 26.4 per cent at the end of December 2025.
Although bad loans remain relatively high within the microfinance segment, the Bank of Ghana noted that overall profitability improved during the review year, supported by stronger balance sheets, higher deposits and expanding business activities.
The latest figures point to a gradual strengthening of Ghana’s specialised deposit-taking institutions, even as regulators continue efforts to improve capitalisation, enhance risk management and reinforce the long-term stability of the country’s financial sector.
