Ghana’s banking sector maintained its profitability during the first half of 2026; however, earnings faced challenges due to the significant impact of the low interest-rate environment on banks’ core income.
According to the Bank of Ghana’s Monetary Policy Report for July 2026, the profit-after-tax (PAT) for banks decreased slightly to GH¢7.1 billion by the end of June 2026, down from GH¢7.2 billion in the same period last year.
This indicates a 1.3% decline in PAT, a stark contrast to the 32.6% growth observed in June 2025. Profit-before-tax also saw a reduction of 1.5%, in comparison to a 32.2% increase a year prior.
The primary factor contributing to this decline was net interest income, which fell by 3.1%, reversing the 20.2% growth recorded in June 2025. The Bank of Ghana attributed this slowdown mainly to the ongoing low interest-rate environment.
On a positive note, fees and commissions provided some relief, increasing by 18.2%, which is slightly above the 17.8% growth noted a year earlier.
Additionally, banks encountered significantly elevated credit-related expenses. Provisions for depreciation, bad debts, and impairment losses on financial assets surged by 38.2%, contrasting with a 14.8% decrease in June 2025.
The decline in profitability was also evident in key performance metrics. Return on Equity dropped sharply to 22.9% from 32.2%, while Return on Assets fell to 4.4% from 5.6%.
The industry’s interest spread narrowed to 4.4% from 6.0%, and gross yields decreased to 6.1% from 8.9%.
Investment income continued to be the largest source of earnings for banks, although its share of total income decreased to 42.8% from 46.4%. Furthermore, income from loans and advances also diminished as a proportion of total income, falling from 30.1% to 28.4%.
