Ghana's Savings and Loans sector recorded a substantial profit of GHS 515.32 million in 2025. This marks a significant increase from the GHS 141.57 million reported in the previous year.
This impressive profit growth was supported by a reduction in Non-Performing Loans (NPLs), which decreased to 11.8% in December 2025. NPLs stood at 15.0% in December 2024, indicating improved asset quality within the sub-sector. Total assets also grew by 31.2% year-on-year, reaching GHS 12.63 billion by December 2025.
These developments occur as Ghana continues to navigate a complex economic landscape. The improved profitability and asset quality in the Savings and Loans sector contribute to overall financial sector stability. This positive trend aligns with broader efforts by financial institutions to strengthen their balance sheets. These efforts followed recent economic challenges.
The 2025 Bank of Ghana Annual Report and Financial Statement provided these figures. The report highlighted the sector's positive financial performance. It also noted the rise in the Capital Adequacy Ratio (CAR) to 3.5% in December 2025. This increased from -0.6% in December 2024, but remains below the prudential minimum of 10.0%.
Despite the strong profit and asset growth, the persistent shortfall in the Capital Adequacy Ratio is a key area for regulators. The Bank of Ghana will likely continue to monitor this metric closely. Further actions may be required to ensure all institutions meet the necessary capital buffers. This will impact future licensing and operational frameworks within the sector.
The total number of licensed Savings and Loans institutions stood at 26 by the end of December 2025. This indicates a stable number of players in the market. Meanwhile, the microfinance institutions (MFIs) sector also saw growth. Total MFI assets reached GHS 3.06 billion, a 55.5% year-on-year increase. Average CAR for MFIs was 22.1% and average NPLs were 26.4%.
The overall improvement in the Savings and Loans sector's profitability and asset quality is a positive sign for Ghana's financial system. This strengthens the capacity of these institutions to support small and medium-sized enterprises. It also allows them to provide essential financial services to a broader population. Investors and depositors will watch for continued improvement in capital buffers. Regulatory policies will shape the sector's trajectory in the coming year.