Ghana’s banking industry remained profitable in the first half of 2026, but earnings came under pressure as the low interest-rate environment weighed heavily on banks’ core income.
The Bank of Ghana’s July 2026 Monetary Policy Report shows that banks’ profit-after-tax (PAT) fell marginally to GH¢7.1 billion at end-June 2026, from GH¢7.2 billion a year earlier.
This represents a 1.3% contraction in PAT, a sharp reversal from the 32.6% growth recorded in June 2025. Profit-before-tax also declined by 1.5%, compared with a 32.2% expansion a year earlier.
The biggest drag came from net interest income, which contracted by 3.1%, reversing a 20.2% growth recorded in June 2025. The Bank of Ghana attributed the slowdown largely to the prevailing low interest-rate environment.
Meanwhile, fees and commissions provided some support, growing 18.2%, slightly faster than the 17.8% recorded a year earlier.
Banks also faced significantly higher credit-related costs. Provisions for depreciation, bad debts and impairment losses on financial assets surged by 38.2%, compared with a 14.8% contraction in June 2025.
The moderation in profitability was also reflected in key performance indicators. Return on Equity fell sharply to 22.9% from 32.2%, while Return on Assets declined to 4.4% from 5.6%.
The industry’s interest spread narrowed to 4.4% from 6.0%, while gross yields dropped to 6.1% from 8.9%.
Investment income remained banks’ largest source of earnings, although its contribution to total income fell to 42.8% from 46.4%. Income from loans and advances also declined as a share of total income, from 30.1% to 28.4%.
