Ghana’s Non-Performing Loans go up to GHC6.33billion

The latest banking sector report has revealed that Ghana’s Non-Performing Loans (NPLs) has gone up by 4.5% to record GHC6.33 billion in February 2020.

Ghana cedi

This is after it recorded a decline of 14.4% a year earlier.

The report pointed out that the positive effect of the decline in the stock of NPLs on the NPL ratio was reinforced by the rebound in gross credit.

This has resulted in a reduction in the NPL ratio to 13.8% in February 2020 from 18.2% in February 2019.

Consequently, the industry’s NPL ratio adjusted for a fully provisioned loan loss category also declined from 9.4% to 5.2%.

The report indicated that the distribution of NPLs among borrower groups reflected both the share of credits and the risk dynamics of these groups.

The higher share of private sector loans translated to a larger share of NPLs due to the generally higher risk profile of the private sector. This also reflected in the sub-components of the private sector.

NPLs of indigenous enterprises made up for almost three-quarters of total NPLs. This is despite banks halving credit to this segment due to their relatively higher credit risk.

Foreign enterprises, households or individuals, and government accounted for relatively lower respective shares of 9.2%, 7.9%, and 2.7% due to their lower credit allocation and better credit risk profiles.

Eyewitness? Submit your stories now via social or:

Email: news@pulselive.co.ke

Recommended articles

Linet Toto excited as she unveils sleek ride after 1 month in office [Photos]

Linet Toto excited as she unveils sleek ride after 1 month in office [Photos]

Africa’s richest man Aliko Dangote poised to overtake another Russian billionaire Vladimir Lisin on Bloomberg billionaires list

Africa’s richest man Aliko Dangote poised to overtake another Russian billionaire Vladimir Lisin on Bloomberg billionaires list

Diwali 2022: Is Monday a public holiday in Kenya?

Diwali 2022: Is Monday a public holiday in Kenya?

Mzee Kibor's will made public, revealing how vast wealth and millions will be distributed

Mzee Kibor's will made public, revealing how vast wealth and millions will be distributed

Ini Edo posts new photos amid reports of welcoming a baby through surrogacy

Ini Edo posts new photos amid reports of welcoming a baby through surrogacy

Mathias Pogba brands Paul Pogba 'a so-called Muslim steeped in witchcraft' amid fetish claims about Kylian Mbappe

Mathias Pogba brands Paul Pogba 'a so-called Muslim steeped in witchcraft' amid fetish claims about Kylian Mbappe

Referee behind chaos at AFCON was rushed to hospital after match

Referee behind chaos at AFCON was rushed to hospital after match

Ne-Yo speaks out after wife Crystal announced end of their 8-year marriage

Ne-Yo speaks out after wife Crystal announced end of their 8-year marriage

Eddie Butita speaks on his fallout with Miss Mandi, offers her a job

Eddie Butita speaks on his fallout with Miss Mandi, offers her a job