Ghana’s banking industry logged a modest profit‑after‑tax of GH¢7.1 billion at the end of June 2026, down 1.3% from GH¢7.2 billion a year earlier, according to the Bank of Ghana’s July 2026 Monetary Policy Report.
The dip marks a sharp reversal from the 32.6% growth recorded in June 2025. Profit before tax also slipped 1.5%, after a 32.2% expansion a year earlier.
Net interest income, the core of banks’ earnings, contracted 3.1%, reversing a 20.2% rise in June 2025. The central bank attributed the slowdown largely to the prevailing low interest‑rate environment.
Fees and commissions offered a modest buffer, rising 18.2% versus 17.8% a year earlier. However, provisions for depreciation, bad debts and impairment losses on financial assets jumped 38.2%, compared with a 14.8% contraction in June 2025.
Key performance indicators reflected the squeeze: return on equity fell to 22.9% from 32.2%, and return on assets dropped to 4.4% from 5.6%. The industry’s interest spread narrowed to 4.4% from 6.0%, while gross yields fell to 6.1% from 8.9%.
Investment income remained the largest earnings source, though its share of total income fell to 42.8% from 46.4%. Income from loans and advances also fell as a share of total income, from 30.1% to 28.4%.
Banking executives are monitoring the trend closely, as the low‑rate backdrop and rising credit costs continue to pressure profitability.
