Ghana's Savings and Loans industry reported a profit of GHS 515.32 million in 2025. This marks a substantial increase from the GHS 141.57 million profit recorded in 2024.
This improved profitability coincides with a significant reduction in Non-Performing Loans (NPLs). The NPL ratio decreased to 11.8% in December 2025, down from 15.0% in December 2024. This reduction indicates better loan repayment performance across the 26 licensed Savings and Loans institutions.
This positive financial trend in the Savings and Loans sector reflects broader efforts to strengthen Ghana's financial system following recent reforms. While the industry's profitability has improved, a critical concern remains its Capital Adequacy Ratio (CAR). The CAR stood at 3.5% in December 2025, an improvement from -0.6% in December 2024 but still significantly below the prudential minimum of 10.0%. This shortfall indicates that institutions hold less capital than required to absorb potential losses, posing a risk to financial stability.
The 2025 Bank of Ghana Annual Report and Financial Statement provides these figures. The report highlights the mixed performance, with profitability and asset quality improving while capital buffers remain low. Total assets for the Savings and Loans sector reached GHS 12.63 billion by December 2025, showing a year-on-year growth of 31.2%. Deposits also grew by 27.8% over the same period, demonstrating increased public trust and engagement with the sector.
Microfinance institutions (MFIs), which often operate alongside Savings and Loans companies, also showed strong growth. The 172 licensed MFIs had total assets of GHS 3.06 billion, a 55.5% year-on-year increase. This growth is up from 35.7% the previous year, highlighting the expanding role of these institutions in providing financial services.
Despite the positive profit and NPL figures, the low CAR points to potential challenges for regulators and institutions. The Bank of Ghana will likely maintain scrutiny on the sector's capital position. Institutions may need to raise more capital or retain a larger share of their profits to meet regulatory requirements. Investors will monitor these developments, looking for signs of sustained capital improvement alongside profitability. Policy actions from the central bank could aim to bolster the sector's resilience.