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BANK OF GHANA
MONETARY POLICY REPORT


March 2026
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The Monetary Policy Report highlights the economic and financial sector assessments that the Monetary Policy Committee (MPC)
considered prior to the policy decision during the 129th meetings held on March 16-18, 2026.
Monetary Policy Objective in Ghana
The primary objective of the Bank of Ghana is to ensure stability in the general level of prices, which has been defined as maintaining
inflation over the medium term, within a band of 8±2 percent. The Bank is also expected to support the general economic policy of
the government, promote economic growth and development, foster the effective and efficient operation of the banking and credit
system, and contribute to the promotion and maintenance of financial stability.

Monetary Policy Strategy
To achieve the objective of price stability, the Bank of Ghana has been granted operational independence to use whichever policy
tools it sees appropriate to stabilise inflation around the target band. The Bank of Ghana’s framework for conducting monetary
policy is Inflation Targeting (IT), in which the central bank uses the Monetary Policy Rate (MPR) as the primary policy tool to set
the monetary policy stance and anchor inflation expectations in the economy.

The MPC Process
The MPC is a statutorily constituted body established by the Bank of Ghana (Amendment) Act, 2016 (Act 918), to formulate monetary
policy. The MPC consists of seven members – five from the Bank of Ghana (including the Governor, who is the Chairman) and two
external members appointed by the Board of the Bank. The MPC meeting dates are determined at the beginning of each year. The
MPC meets bi-monthly to assess economic conditions and risks to the inflation outlook, after which a policy decision is made on
positioning the MPR. Each decision signals a monetary policy stance of tightening (increase), easing (decrease) or no change (stay
put). The policy decision is arrived at by consensus, with each member stating reasons underlying a preferred MPR decision.
Subsequently, the decision is announced at a press conference held after each MPC meeting and a press release is issued to financial
markets and the public.

©Research Department, Bank of Ghana MPC Report – April 2026
www.bog.gov.gh


Table of Contents


Overview of Key Considerations of the MPC

Global economic conditions remained resilient despite rising geopolitical tensions. The Middle East conflict
disrupted supply chains and heightened oil price volatility, increasing global uncertainty. Although headline inflation
declined in most economies, higher energy prices pose renewed risks. Global financing conditions, while still supportive,
may tighten if geopolitical pressures intensify.

Domestic economic activity strengthened in 2025, supported by robust non‐oil sector performance. Real GDP
grew by 6.0 percent, while non‐oil GDP expanded by 7.6 percent. High‐frequency indicators showed continued
momentum, with the CIEA rising by 8.4 percent in January 2026. Growth was driven by stronger private sector credit,
increased industrial output, and higher consumption levels.

Inflation eased significantly, reflecting broad-based declines across key components. Headline inflation fell to 3.3
percent in February 2026 from 5.4 percent in December 2025. Core inflation also moderated, and expectations across
consumers, businesses, and the financial sector remained anchored. The disinflation trend was supported by tight
monetary policy, cedi appreciation, and improved food supply conditions.

External sector performance remained strong, underpinned by a widening trade surplus. The trade surplus
increased to US$3.7 billion in the first two months of 2026, supported by higher gold export earnings and modest import
growth. Gross reserves rose to US$14.5 billion (5.8 months of import cover), compared to US$13.8 billion at
end‐December 2025.

The exchange rate remained broadly stable, supported by strong external buffers. Improved reserve levels and
favourable trade outcomes helped maintain stability in the cedi. Continued reserve accumulation under the national
reserve programme is expected to strengthen FX conditions further.

Monetary aggregates continued to moderate, reflecting restrained liquidity conditions. Reserve money contracted
by 0.5 percent year‐on‐year in February 2026, while broad money growth slowed to 16.0 percent. Short‐term interest
rates declined sharply, and average lending rates fell to 19.2 percent from 30.1 percent a year earlier. Private sector
credit recovery continued gradually.

Banking sector conditions improved, supported by stronger balance sheet performance. Total assets increased,
driven by higher deposits, borrowings, and investment growth of 57.5 percent. Financial soundness indicators
strengthened across profitability, liquidity, and solvency. The NPL ratio declined to 18.7 percent, though it remains a
key vulnerability requiring sustained regulatory action.

The MPC noted improving domestic conditions but highlighted rising global risks. Inflation is projected to remain
within the medium‐term target band, despite upside risks from higher global oil prices. With domestic conditions
favourable and real rates high, the Committee reduced the Monetary Policy Rate by 150 basis points to 14.0 percent.


3 | . Global Economic Developments

1.0 Highlights
Recent data suggests continued global economic resilience, although the momentum is likely to soften going forward.
Global headline inflation was on a downward trajectory, but recent geopolitical events in the Middle East may reverse
this trend. Global financial conditions remain accommodative but face possible risks associated with the Iran War. In
the local FX market, the cedi recovered strongly in February 2026.

1.1 Global Growth Developments
GDP outturn for the fourth quarter of 2025 has shown that the global economy was resilient in 2025, but the growth
momentum has eased in some countries, such as the United States and those in the Euro area. Moving to Q1 of 2026,
high-frequency data points to a pick-up in activity in the near term, with both manufacturing and services activity being
expansionary. Reflecting continuing activity, both consumer and business confidence indices rose in January 2026.
However, recent geopolitical developments and past disruptions may dim the outlook if they persist. For instance, the
surge in oil prices coming out of the 28th of February war by the US and Israel against Iran has led to a spike in oil
prices above $100/barrel. If the war should last beyond three weeks, analyst projects a significant upward repricing of
oil in the near term of $100-$120/barrel. Higher energy prices will feed into transportation costs, industrial input costs,
household expenditures, and broader price increases across economies.

Table 1.1: Overview of the World Economic Outlook Projections


Consequently, Central banks may find it harder to ease monetary policy if inflation remains elevated, potentially
delaying interest rate cuts. Higher oil prices will also significantly boost import bills, worsening trade balances. Beyond
prices, supply disruptions are beginning to emerge as crude trade is halted significantly along the Strait of Hormuz and
the Suez Canal corridor, which accounts for about 30% of crude transit due to the war. The Rerouting of maritime traffic
around Africa’s Cape of Good Hope and disruptions to air cargo operations will create logistical bottlenecks. Rising
insurance costs for shipping and pressure on freight rates will increase trade costs. Moreover, the war will add to the
existing economic and policy uncertainty, which may impact consumption and investment. Financial stability concerns
are emerging as major stock indices in the U.S., Europe, and Asia experienced declines following reports of airstrikes
and attacks. Investors have sought traditional safe-haven assets such as gold and the U.S. dollar, which appreciated amid
the turmoil, with implications for Emerging Market currencies. In addition, the 2025 Tariff Wars are not fully resolved,
with the Trump Administration resorting to the Trade Act of 1974 to continue to impose 10% tariff on all countries
despite the U.S Supreme Court ruling on February 20 against previous tariffs. Furthermore, the global economy faces
widespread concerns about AI; both as a bubble that might burst and as a force driving job losses.


Discounting the effect of the current war, the IMF projects that global growth will remain steady at 3.3% for 2026 and
3.2% for 2027. These projections will most likely change in the next review window to reflect current geopolitical
conditions.

1.2 Global Price Developments
Global headline inflation is on a downward trajectory, but recent geopolitical events in the Middle East may reverse this
trend. The dynamics of headline inflation will reflect the recent surge in oil prices in the near term. Brent crude oil
averaged $64 per barrel in January 2026 but has surged above $100 per barrel as the war persists. The FAO Food Price
Index was up by 0.9 percent in the month of February 2026, supported by sustained demand and subdued supply. Even
though core inflation is currently showing signs of easing, a possible rise in input costs due to the war may reverse this
trend. However, expectations of headline and core inflation for 2026 and 2027 remain unchanged. The path of global
inflation in the near term will depend on how the war evolves. A prolonged war will drive up energy costs and feed into
transportation costs, industrial input costs, household expenditures, and translate into broader price increases across
economies. Capital Economics projects that a sustained $100 crude price could add 0.6 to 0.7 percentage points to global
inflation. However, a quick return to normalcy will have a minimal impact on inflation.

Figure 1.1: Headline Inflation in Advanced and Emerging Market Economies

Source: Bank of Ghana, Trading Economics

1.3 Global Financial Markets Developments
Global financial conditions have eased considerably since April 2025 across both advanced and emerging-market
economies, supported by accommodative policy stances from major central banks. However, long-term bond yields
remain elevated, reflecting investor expectations that inflation will stay higher for long. Equity markets have come under
pressure amid the uncertainty created by the Iran war and its implications for the global monetary policy outlook, with
the tension also weighing on the sovereign spreads of several African countries.

Emerging-market (EM) portfolio flows declined sharply to $14.3 billion in February 2026, down from $98.8 billion in
January, driven by weakening investor risk appetite. Looking ahead, global financial conditions may tighten in the near
term if the Iran conflict persists. The associated surge in oil prices risks reversing the ongoing disinflation process, which
could complicate central banks’ efforts to ease monetary policy, potentially delaying planned interest rate cuts.
Reflecting these developments, long-term bond yields have risen sharply while sovereign spreads have begun to widen.
At the same time, equity performance has softened in recent weeks, and portfolio flows to EMs have weakened. The
persistence of these dynamics could ultimately lead to tighter global financial conditions.


Table 1.2: Monetary Policy Stance of Selected Central Banks

Source: Growth Rate (World Bank); Debt/GDP (IMF) Policy Rates (Trading Economics)

1.4 Currency Markets
On the international currency market, the U.S. dollar index is strengthening amid safe-haven demand as the escalating
Middle East conflict and rising oil prices unsettled financial markets. The strengthened dollar put some pressure on some
EMDE currencies.

In the domestic FX market, the cedi faced pressures in January due to frontloading of imports ahead of the Lunar
celebrations in China and other parts of Asia. The currency, however, recovered from losses of the past month and
appreciated in February due to the sharp fall in FX demand following the onset of the lunar celebration. The forex market
was also supported with increased inflows from mining and remittances. This coincided with market players' adoption
of a wait-and-see approach, even as the cedi appreciated further, strengthening the currency. In the outlook, the U.S.-
Israel-Iran war may make it difficult for GoldBod to export Gold to the UAE, which will affect FX inflows. It may lead
to a higher energy import bill and put pressure on the cedi. The strengthening of the dollar may also have adverse
implications for the local currency. Further pressures are expected from dividend payments scheduled for March 2026.
However, BoG’s $1 Billion FX intermediation is expected to improve liquidity in the FX market.

In the interbank market, the cedi depreciated by 2.21 percent, 2.26 percent, and 2.84 percent against the dollar, pound,
and euro, respectively, on a year-to-date basis. This is against a depreciation of 5.34 percent, 5.87 percent, and 5.81
percent against the dollar, pound, and euro, respectively, during the same period in 2025. However, the cedi was less
volatile during the first 49 transaction days in 2026 compared to the last four years.

The cedi depreciated by 0.45 percent, and 0.04 percent, in nominal trade-weighted terms and nominal forex transaction
weighted terms, respectively, against Ghana’s major trading partners on a year-to-date basis in February 2026. Over the
same period in 2025, the cedi experienced a depreciation of 5.87% and 5.67%, in nominal trade-weighted terms and
nominal forex transaction-weighted terms, respectively.


Country
Policy rate -
Previous (%)
Policy Rate
Current (%)
Forecast
Inflation
January, 2026
Inflation
February, 2026 Real rate Infl Target
Overall
Fiscal
Deficit
(2024,%
of GDP)
GDP
Growth
(Dec.2024)
Gross
Debt/GDP
(2024,%)
YTD
Depr/App
r 11th
March

U.S

Euro Area

< 2%

UK
3.75
3.75
3.75


Japan

Russia
16.00
15.50
15.50


India

4±2%

Brazil

4.5±1.5%

Turkey

5±2%
-4.6
3.3

-2.57
Malaysia

Indonesia

3.5% ± 1%
-2.3

40.2
1.07
Chile

3±1%

Ghana

8±2%

South Africa

3%±1%

Nigeria

Kenya

Zambia


6%-8%
-3.3

114.9
13.59
Morocco

Angola

Egypt

7± 2%

Source: Growth rate(World Bank); Debt/GDP (IMF)
Policy Rates (Trading Economics), YTD depreciation/appreciation is from Bloomberg


Table 1.3: Interbank Exchange Rates

Source: Bank of Ghana Staff Calculations

Table 1.4: Nominal Effective Exchange Rate

Source: Bank of Ghana Staff Calculations
Note: TWI and FXTWI are index measures of the value, in nominal terms, of the cedi relative to Ghana’s top three currencies: Euro, the Pound
and the US dollar.

In real bilateral terms, the cedi appreciated by 0.19 percent, 1.11 percent, and 0.37 percent, against the dollar, pound,
and euro, respectively, on a year-to-date basis in February 2026. Comparatively, the cedi experienced a depreciation in
real terms of 3.64 percent, 3.20 percent, and 2.88 percent, respectively, against the dollar, pound, and the euro over the
same period in 2025.

In real trade-weighted and real forex transaction related terms against the three major currencies (i.e., US dollar, the
Euro and Pound), the cedi appreciated by 0.41 percent and 0.22 percent on a year-to-date basis in February 2026. For
the same period in 2025, the cedi depreciated by 3.01 percent, and 3.57 percent, in real trade-weighted terms and forex
transaction-weighted terms, respectively.


Exchange Rate Movements
US$/GHC*
Monthly
depreciation/a
ppreciation
Year-to-Date
depreciation/
appreciation
GBP/GHC*
Monthly
depreciation/a
ppreciation
Year-to-Date
depreciation/
appreciation
Euro/GHC*
Monthly
depreciation/
appreciation
Year-to-Date
depreciation/a
ppreciation

Jan

Feb

Mar

Apr

May

June

July

Aug

Sep

Oct

Nov

Dec


Jan

Feb

Mar

Apr

May

June

July

Aug

Sep

Oct

Nov

Dec


Jan

Feb

Month
2021=100
Monthly CHG(%)
Year-to-Date (%)
FXTWI
TWI
FXTWI
TWI FXTWI
TWI

Jan-25

Feb-25

Mar-25

Apr-25

May-25

Jun-25

Jul-25

Aug-25

Sep-25

Oct-25

Nov-25

Dec-25

Jan-26

Feb-26


Table 1.5: Real Bilateral Exchange Rate

Source: Bank of Ghana Staff Calculations

Table 1.6: Real Effective Exchange Rate for Major Trade Partners

Source: Bank of Ghana Staff Calculations

1.5 Global Economic Outlook and Risks
Prior to the US-Israel-Iran war, the global economy was resilient. Inflation was on a downward trajectory, and financial
conditions were improving markedly. However, a prolonged war could push up oil prices above $100/barrel and lead to
a resurgence in global inflation. This would force central banks to pause or even reverse the recent policy easing cycles,
spook financial markets and lead to the repricing of risky assets. Tighter financial conditions, along with uncertainty
associated with the war, may severely weigh on growth outlook. Weaker global growth will negatively impact Ghana’s
exports and reserve buildup. Against this backdrop, the country faces an elevated risk of inflation from the external
environment.


RER Index (Jan.2021=100) MONTHLY CHANGE (Index)
Year-to-Date (%)
Month
EUR
GBP
USD
EUR
GBP
USD
EUR
GBP
USD

Jan-25

Feb-25

Mar-25

Apr-25

May-25

Jun-25

Jul-25

Aug-25

Sep-25

Oct-25

Nov-25

Dec-25


Jan-26

Feb-26

Month
INDEX (2021=100)
MONTHLY CHG
Year-to-Date (%)
RFXTWIRTWI
RFXTWIRTWI
RFXTWI
RTWI

Jan-25

Feb-25

Mar-25

Apr-25

May-25

Jun-25

Jul-25

Aug-25

Sep-25

Oct-25

Nov-25

Dec-25


Jan-26

Feb-26

RTWI and FXRTWI

8 | . External Sector Developments

2.0 Highlights
The external sector maintained a robust performance in the first two months of the year, posting a significant trade
surplus driven mainly by increased gold export earnings. The large trade surplus supported the buildup in international
reserves during the period under review.

2.1 Commodity Price Trends
On the international commodities market, prices of Ghana’s major export commodities recorded mixed movements.
Cocoa futures experienced a steep decline, dropping by 63.7 percent to an average of US$3,608.56 per tonne in February
2026 from US$9,946.79 per tonne in February 2025. Year to date, the cocoa bean has lost 38.8 percent of its value due
to persistently weak global demand, leading to a buildup of unsold cocoa stocks across West African ports.

Crude oil prices dropped by 7.5 percent year-on-year to average US$69.37 per barrel in February 2026, down from
US$74.95 per barrel in the same period in 2024, mainly due to weak global demand amid an oversupplied market. In
the first two months of the year, crude oil prices have risen by 12.6 percent, driven by fears of potential supply disruptions
due to the ongoing conflict in the Middle East.

Gold prices remained firm, soaring by 72.8 percent year-on-year to US$5,007 per fine ounce in February 2026, up from
US$2,897.26 per fine ounce in February 2025, driven by U.S. Fed rate cuts, geopolitical and geoeconomic tensions, and
increased demand from central banks around the world. Year-to-date, the price of the yellow metal has risen by 16.0
percent as persisting geopolitical tensions have spurred safe-haven demand.


Source: Reuters


Source: Reuters


Source: Reuters


Source: BoG Staff Compilations


Dec-20
Mar-21
Jun-21
Sep-21
Dec-21
Mar-22
Jun-22
Sep-22
Dec-22
Mar-23
Jun-23
Sep-23
Dec-23
Mar-24
Jun-24
Sep-24
Dec-24
Mar-25
Jun-25
Sep-25
Dec-25
Figure 2.1: International Cocoa Prices (US$/Metric Tonne)

Dec-20
Mar-21
Jun-21
Sep-21
Dec-21
Mar-22
Jun-22
Sep-22
Dec-22
Mar-23
Jun-23
Sep-23
Dec-23
Mar-24
Jun-24
Sep-24
Dec-24
Mar-25
Jun-25
Sep-25
Dec-25
Figure 2.2: International Brent Crude Oil Prices (US$/Barrel)

Dec-20
Mar-21
Jun-21
Sep-21
Dec-21
Mar-22
Jun-22
Sep-22
Dec-22
Mar-23
Jun-23
Sep-23
Dec-23
Mar-24
Jun-24
Sep-24
Dec-24
Mar-25
Jun-25
Sep-25
Dec-25
Figure 2.3: International Gold Prices (US$/Fine Ounce)

Dec-20
Mar-21
Jun-21
Sep-21
Dec-21
Mar-22
Jun-22
Sep-22
Dec-22
Mar-23
Jun-23
Sep-23
Dec-23
Mar-24
Jun-24
Sep-24
Dec-24
Mar-25
Jun-25
Sep-25
Dec-25
Figure 2.4: Commodities Price Index

9 | .1.1 Commodity Price Index
The overall weighted average price index of Ghana's three major export commodities (cocoa, gold, and crude oil)
recorded a year-to-date increase of 5.6 percent to 261.72 in February 2026. This performance was mainly on account of
increases in the gold and oil sub-indices, which rose by 16.0 percent, and 12.3 percent, respectively. In contrast, the
cocoa sub-index contracted by 38.8 percent during the period under review.

On a year-on-year basis, the composite commodity price index increased by 16.4 percent, primarily driven by a
substantial 72.8 percent increase in the gold price sub-index. In contrast, the cocoa and crude oil price sub-indices
registered declines of 63.7 percent, and 7.5 percent, respectively.

2.2 Trade Balance
In the first two months of 2026, the economy recorded a higher trade surplus of US$3.69 billion, representing a 72.7
percent improvement over the US$2.14 billion recorded during the same period in 2025. The stronger trade performance
was due to a substantial increase in export earnings, while import demand dipped during the period.

The value of exports surged to US$6.21 billion in the first two months of 2026, up from US$4.69 billion in the same
period of 2025, driven mainly by higher gold exports. Gold export receipts increased by 84.1 percent to US$4.26 billion
from US$2.31 billion during the period under review, on account of increases in both the volume and price of gold. The
volume of gold exports increased by 5.2 percent to 903,877.5 fine ounces, while the average price rose by 74.9 percent
to settle at US$4,710 per fine ounce during the same review period.

In the first two months of the year, export receipts from the export of cocoa beans and related products declined to
US$956.34 million, compared with US$1.19 billion recorded over the same period in 2025. This contraction was largely
attributable to weak global demand for cocoa, despite modest price improvements during the review period.

Crude oil exports fell by 22.3 percent to US$451.47 million during the first two months of 2026, down from US$581.3
million in the comparative period in 2025. Crude oil prices remained subdued during the period, averaging US$67.7 per
barrel compared with US$76.7 per barrel in the corresponding period. Similarly, receipts from other exports (excluding
gold, cocoa, and crude oil) largely comprising non-traditional exports, declined by 9.3 percent to US$540.82 million
from US$596.25 million during the same review period.

Total import bill, on the other hand, recorded a modest decline of 1.3 percent to US$2.52 billion during the first two
months of 2026 compared to US$2.55 billion recorded in the same period in 2025. This outcome reflected increased
demand for oil and gas imports, while non-oil imports contracted over the review period. Oil and gas imports rose
marginally by 3.5 percent to US$852.7 million from US$823.7 million in the same period in 2025 due to increased
demand for crude oil by local refineries, while non-oil imports declined to US$1.66 billion from US1.72 billion during
the same reference period.


Table 2.1: Trade Balance (US$ million)

Source: Bank of Ghana

2.3 International Reserves
At the end of February 2026, Ghana’s stock of Gross International Reserves (GIR) amounted to US$14.47 billion,
sufficient to provide 5.8 months of import cover for goods and services. This represented an increase from the endDecember 2025 level of US$13.83 billion, equivalent to 5.7 months of import cover. Under the IMF-ECF Program
definition, Net International Reserves (NIR), which excludes the Petroleum funds and encumbered assets, stood at
US$5.65 billion as of end-February 2026.

2.4 External Sector Outlook
Overall, Ghana’s external sector outlook remains broadly positive, notwithstanding the increasingly challenging global
environment. The outlook for the prices of the country’s major export commodities appears mixed. An assessment of
the potential implications of the ongoing conflict in the Middle East suggests that Ghana’s external sector remains
resilient, underpinned by a sustained current account surplus and adequate reserve buffers.


11 | . Real Sector Developments

3.0 Highlights
Growth for 2025 was robust, exceeding initial expectations. Economic activity in the first quarter of 2026 is also
expected to remain firm. This is supported by the latest high-frequency real sector indicators, which point to a sustained
pickup in economic activity in January 2026. Consumer and business confidence also continued to reflect positive
sentiments about macroeconomic conditions.

3.1 Economic Growth
The latest provisional data from the Ghana Statistical Service showed that real GDP grew by 6.0 percent in 2025,
compared with 5.8 percent in 2024. Non-oil GDP growth accelerated to 7.6 percent from 6.1 percent over the same
comparative period. The growth outturn was largely driven by the services and agriculture sectors, which recorded
growth rates of 8.1 percent and 6.8 percent respectively. Industry, on the other hand, grew at a slower pace of 2.3 percent
due to a decline in oil production.

3.2 Trends in Real Sector Indicators
Consumer Spending
Consumer spending, proxied by domestic VAT collections and retail sales, posted a positive performance in January
2026 compared with the corresponding period in 2025. Domestic VAT collections increased by 7.1 percent on a yearon-year basis to GH¢1,799.39 million, from GH¢1,680.59 million. However, on a month-on-month basis, domestic
VAT declined by 13.1 percent in January 2026 from GH¢2,069.63 million in the preceding month.

Retail sales increased by 16.6 percent (year-on-year) to GH¢277.88 million in January 2026, up from the GH¢238.38
million recorded in the same period in 2025. Compared to December 2025, however, retail sales declined by 41.1
percent.

Manufacturing Activities
Activities in the manufacturing sub-sector, gauged by trends in the collection of direct taxes and private sector workers’
contributions to the Social Security and National Insurance Trust (SSNIT) Pension Scheme (Tier-1), recorded a positive
performance in January 2026. Total Direct Taxes collected increased by 9.0 percent to GH¢5,802.49 million in January
2026, compared with GH¢5,322.11 million recorded in January 2025. Conversely, on a month-on-month basis, total
Direct Taxes collected for January 2026 declined by 64.4 percent from GH¢16,305.27 million collected in December
2025. In terms of contributions of the various sub-tax categories, Corporate tax accounted for 40.7 percent, Income tax
(PAYE and self-employed) accounted for 40.3 percent, while “Other Tax Sources” contributed 18.9 percent.

Total private sector workers’ contribution to the SSNIT Pension Scheme (Tier-1) went up by 16.8 percent in year-onyear terms to GH¢551.97 million in January 2026 from GH¢472.62 million collected during the corresponding period
in 2025.

Construction Sector Activities
Activity in the construction sub-sector, proxied by the volume of cement sales, declined by 7.7 percent (year-on-year)
in January 2026 to 206,798.89 tonnes, compared with 223,936.19 tonnes recorded a year ago. On a month-on-month
basis, total cement sales remained largely unchanged in January 2026 compared with the 207,929.45 tonnes recorded in
December 2025. The year-on-year decline in total cement sales was due to a slowdown in construction activities during
the review period.


Vehicle Registration
Transport sector activities, gauged by new vehicle registrations by the Driver and Vehicle Licensing Authority (DVLA),
increased by 33.5 percent to 39,421 in January 2026 from 29,521 vehicles registered during the corresponding period of
2025. On a month-on-month basis, DVLA vehicle registrations improved significantly from the 10,613 vehicles
recorded in the preceding month.

Industrial Consumption of Electricity
Industrial consumption of electricity improved by 7.6 percent in January 2026 to 314.29 gigawatts, as against 292.14
gigawatts recorded for the corresponding period in 2025. However, on a month-on-month basis, electricity consumed
by industries in January 2025 remained relatively unchanged from the 316.27 gigawatts utilised in December 2025.

Passenger Arrivals
Passenger arrivals increased by 8.7 percent in year-on-year terms to 110,087 in January 2026, up from 101,237 arrivals
recorded a year ago. However, compared to a month earlier, passenger arrivals recorded at the international airport and
the land borders went down by 18.9 percent.

Ports and Harbours Activity
International trade at the country’s two main harbours (Tema and Takoradi), as measured by laden container traffic for
inbound and outbound containers, improved during the period under review. Total container traffic increased by 13.6
percent, year-on-year, to 74,508 in January 2026, up from 65,594 recorded for a similar period in 2025. On a month-onmonth basis, total container traffic declined by 9.8 percent when compared to 82,624 recorded in December 2025.

3.3 Labour Market Activity
Private Sector Pension Contributors
Total number of private sector SSNIT contributors, which partially gauges employment conditions, improved by 7.1
percent to 1,130,757 in January 2026, compared with 1,055,959 for the same period in 2025. On a month-on-month
basis, total number of private sector SSNIT contributors remained largely unchanged from the 1,125,258 individuals
recorded in December 2025.

Advertised Jobs
The number of jobs advertised in selected print1 and online2 media, which partially gauges labour demand in the
economy, decreased in February 2026 relative to what was observed in the corresponding period a year ago. In total,
3,244 job adverts were recorded as compared with 3,411 for the same period in 2025, indicating a decline of 4.9 percent
(year-on-year). On a month-on-month basis, the number of job vacancies in February 2026 declined marginally by 1.0
percent from the 3,276 jobs advertised in January 2026. Cumulatively, for the first two months of 2026, the total number
of advertised jobs remained largely unchanged at 6,520, compared to 6,465 recorded during the same period in 2025.

3.4 Composite Index of Economic Activity
The Bank’s real Composite Index of Economic Activity (CIEA) recorded an annual growth of 8.4 percent in January
2026, compared to a growth of 6.0 percent for the corresponding period of 2025. Increased credit to the private sector
by banks, industrial production, international trade activities, and consumption of goods and services by households and
firms contributed to the improvement in economic activity during the period.


1 The Daily Graphic newspaper was used to represent print media because it is the most widely circulated daily in Ghana.
2 These are job adverts posted on the websites of the 10 main online job advertising/employment companies in Ghana.

13 | .5 Consumer and Business Surveys
The latest confidence surveys conducted in February 2026 reflected positive consumer and business sentiments. The
Consumer Confidence Index improved to 117.7 in February 2026 from 116.4 in December 2025, on account of easing
inflationary pressures and optimism about future economic conditions. Similarly, the Business Confidence Index
increased to 110.1 from 107.7 in the same comparative period, as firms cited the realisation of their operational targets
and expressed optimism about industry prospects amid improving macroeconomic conditions.

Figure 3.1a: High Frequency Economic Indicators


Sources: Bank of Ghana, Various Stakeholders
...Domestic VAT collections and retail sales declined in January 2026
compared to December 2025...
...Labour hiring conditions, proxied by the number of private sector
workers contributing to SSNIT, remained largely unchanged...
...Labour market conditions softened in January 2026 relative to December
2025...
...Construction activities, proxied by cement sales, remained largely
unchanged in January 2026 compared to December 2025...
...Port activity decreased in January 2026 compared to the previous month...
...Tourist arrivals declined in January 2026 compared to December 2025...

Jan-24
Mar-24
May-24
Jul-24
Sep-24
Nov-24
Jan-25
Mar-25
May-25
Jul-25
Sep-25
Nov-25
Jan-26
Cement Sales

Jan-24
Mar-24
May-24
Jul-24
Sep-24
Nov-24
Jan-25
Mar-25
May-25
Jul-25
Sep-25
Nov-25
Jan-26
Thousands
Port Activity (Container Traffic)

Jan-24
Mar-24
May-24
Jul-24
Sep-24
Nov-24
Jan-25
Mar-25
May-25
Jul-25
Sep-25
Nov-25
Jan-26
Thousands
Tourist Arrivals

Jan-24
Mar-24
May-24
Jul-24
Sep-24
Nov-24
Jan-25
Mar-25
May-25
Jul-25
Sep-25
Nov-25
Jan-26
Thousands
Number of Private Sector Contributors to SSNIT
Thousands, tons

Jan-24
Mar-24
May-24
Jul-24
Sep-24
Nov-24
Jan-25
Mar-25
May-25
Jul-25
Sep-25
Nov-25
Jan-26
Million, GHC
Million, GHC
Retail Sales and Domestic VAT collection
Retail Sales, Left
Domestic VAT

Jan-24
Mar-24
May-24
Jul-24
Sep-24
Nov-24
Jan-25
Mar-25
May-25
Jul-25
Sep-25
Nov-25
Jan-26
Million GHC
SSNIT Contributions from Private Sector
Panel 1:
Ghana's Leading Indicators of Economic Activity


Figure 3.1b: High Frequency Economic Indicators


Source: Bank of Ghana, Various Stakeholders
...Commercial banks' credit to the private sector remained largely unchanged in
January 2026 relative to the pevious month...
...Industrial activity, proxied by industrial consumption of electricity, remained
relatively unchanged in January 2026...
...Exports declined while imports remained largely unchanged in January
2026 compared to December 2025...

Jan-24
Mar-24
May-24
Jul-24
Sep-24
Nov-24
Jan-25
Mar-25
May-25
Jul-25
Sep-25
Nov-25
Jan-26
Million, USD
Imports
Exports
Imports and Exports

Jan-24
Mar-24
May-24
Jul-24
Sep-24
Nov-24
Jan-25
Mar-25
May-25
Jul-25
Sep-25
Nov-25
Jan-26
GWh
Industrial Consumption of Electricity

Jan-24
Mar-24
May-24
Jul-24
Sep-24
Nov-24
Jan-25
Mar-25
May-25
Jul-25
Sep-25
Nov-25
Jan-26
Billion, GHC
DMB's Credit to Private Sector

Jan-24
Mar-24
May-24
Jul-24
Sep-24
Nov-24
Jan-25
Mar-25
May-25
Jul-25
Sep-25
Nov-25
Jan-26
Percent, y-o-y
Real CIEA
-8
-4

Jan-25
Feb-25
Mar-25
Apr-25
May-25
Jun-25
Jul-25
Aug-25
Sep-25
Oct-25
Nov-25
Dec-25
Jan-26
Percent, y-o-y
Cement Sales (Tons)
Port Activity
SSNIT Contr by Pte Sector
Exports
Industrial Cons of Electricity
DMB's Credit to Pte Sector
Imports
Tourist Arrivals
Dom VAT
Real CIEA growth (%)
Contribution to Real CIEA growth

Feb-24
Apr-24
Jun-24
Aug-24
Oct-24
Dec-24
Feb-25
Apr-25
Jun-25
Aug-25
Oct-25
Dec-25
Feb-26
Job Adverts
Panel 2:
Ghana's Leading Indicators of Economic Activity
...On a year-on-year basis, the real CIEA grew by 8.4 percent in January 2026,
compared with a growth of 6.0 percent in January 2025...
...The growth in the real CIEA was driven by a pick-up in DMB’s Credit to the
Private Sector, Industrial Consumption of Electricity, Exports, SSNIT Contributions
from the Private Sector, Port Activity, Tourist Arrivals and Domestic VAT...
...Demand for labour, proxied by the number of job adverts (in print and
online media), declined marginally in February 2026...
Number of advertised jobs


Figure 3.1c: High Frequency Economic Indicators


Source: Bank of Ghana, Various Stakeholders
...Business Confidence improved as firms cited the realisation of operational
targets and expressed optimism about industry prospects amid improving
macroeconomic conditions...
...Vehicle registration surged in January 2026 compared to the month before...
...Consumer confidence improved on account of easing inflationary
pressures and optimism about future economic conditions...


Jan-24
Mar-24
May-24
Jul-24
Sep-24
Nov-24
Jan-25
Mar-25
May-25
Jul-25
Sep-25
Nov-25
Jan-26
Vehicle Registration
110.1

Feb-24
Apr-24
Jun-24
Aug-24
Oct-24
Dec-24
Feb-25
Apr-25
Jun-25
Aug-25
Oct-25
Dec-25
Feb-26
Index
Business Confidence Index
117.7

Feb-24
Apr-24
Jun-24
Aug-24
Oct-24
Dec-24
Feb-25
Apr-25
Jun-25
Aug-25
Oct-25
Dec-25
Feb-26
Index
Consumer Confidence Index

Jan-24
Mar-24
May-24
Jul-24
Sep-24
Nov-24
Jan-25
Mar-25
May-25
Jul-25
Sep-25
Nov-25
Jan-26
Billion, GHC
Domestic taxes, Direct
...Domestic tax collection decreased in January 2026 compared to December


Percent
Agricuture
Industry
Services
Annual sectoral real GDP growth rate, y/y


Percent
Oil GDP
Non-Oil GDP
Annual real GDP growth rate, y/y
...Real Oil and Non-Oil GDP grew by 6.0 percent and 7.6 percent respectively
in 2025, compared with growth rates of 5.8 percent and 6.1 percent
respectively in 2024...
...The Services and Agriculture sectors drove growth in 2025, recording growth rates
of 8.1 percent and 6.8 percent respectively, relative to growth rates of 6.2 percent
and 2.7 percent in 2024...
Panel 3:
Ghana's Leading Indicators of Economic Activity
Number of vehicles

16 | . Fiscal Developments

4.0 Highlights
The provisional January-December 2025 fiscal performance on commitment basis indicates that: Fiscal performance
for 2025 was marked by improved revenue buoyancy amid shortfalls in revenue outturns from targets. Total government
expenditure for 2025 reflects deliberate fiscal restraint and improved expenditure control. Shortfalls in revenue
performance was more than offset by a corresponding cut in government’s spending. The fiscal deficit for the period
under review was 1.0 percent of GDP, against the target of 2.8 percent of GDP. The primary balance recorded a surplus
of 2.6 percent of GDP, against a primary surplus target of 1.5 percent of GDP. The overall fiscal deficit was financed
from domestic and foreign sources.

4.1 Revenue and Grants
Total Revenue & Grants for 2025 amounted to GH¢224,883.7 million (16.1% of GDP), lower than the target of
GH¢229,949.7 million (16.4% of GDP). Over the review period, domestic revenue totalled GH¢223,059.1 million
(15.9% of GDP), below the target of GH¢227,275.1 million (16.2% of GDP). The revenue outcomes reflected
underperformances for tax revenue, oil and gas receipts, as well as grants. Tax revenue, comprising taxes on income &
property, taxes on domestic goods and services, international trade taxes, and oil and gas related taxes, was
GH¢183,987.2 million (13.1% of GDP), lower than the target of GH¢189,964.6 million (13.6% of GDP). This
represented a negative deviation of 3.1 percent over the target, signalling systemic revenue leakages.

Non-Tax Revenue, totalled GH¢27,870.1 million, above the target of GH¢26,548.0 million by 5.0 percent. Compared
with the outturn for 2024, this translates into a year-on-year growth of 0.5 percent. This performance was mainly due to
lower than programmed Dividend/Interest & Profits from Oil (CAPI) as well as Yield from Capping Policy for the
collection period.

Oil and gas receipts were GH¢8,711.0 million lower than the target of GH¢16,514.3 million by 47.3 percent. This tax
type also recorded a year-on-year decline of 56.1 percent. Other revenue of GH¢10,335.6 million was above its target
of GH¢9,568.9 million, therefore overperforming its target by 8.0 percent. This outturn is 109.7 percent above
GH¢4,928.5 million collected in the corresponding period of 2024. Grants received for January-December 2025 totalled
GH¢1,824.6 million, a shortfall of 31.8 percent from the programmed target of GH¢2,674.6 million for the review
period. This outturn was also higher than GH¢1,715.7 million received in the corresponding period of 2024, translating
into a year-on-year growth of 6.3 percent.

4.2 Expenditures
Total expenditures and net lending for the review period, totalled GH¢233,778.8 million. This was below the target of
GH¢269,496.1 million by 13.3 percent.

Compensation of Employees was GH¢78,970.1 million, higher than the target of GH¢76,203.2 million. This outturn
was above its target by 3.6 percent and recorded a 17.5 percent year-on-year growth. In terms of fiscal flexibility,
compensation of employees constituted 35.4 percent of domestic revenue mobilised during the period under review.

Use of Goods and Services totalled GH¢6,089.6 million, lower than the expected target of GH¢6,671.1 million by 8.7
percent. This points to some restraint on the part of the government to control discretionary spending. This expense was
also lower than GH¢11,509.0 million received in the corresponding period of 2024, reflecting a year-on-year decline of
47.1 percent.

Total interest payments of GH¢49,891.1 million was above the target of GH¢46,792.3 million for the review period.
This outturn is 6.6 percent above the GH¢46,792.3 million recorded in the corresponding period of 2024. The reduced
interest payment was mainly on account of lower domestic interest payments as well as the appreciation of the local
currency on the external side.


Grants to other Government units amounted to GH¢57,719.7 million, higher than the target of GH¢46,425.5 million,
resulting in a positive deviation of 5.8 percent. It also recorded a year-on-year growth of 24.3 percent.

Capital Expenditure for the period under review was GH¢20,235.3 million (1.4% of GDP), lower than the programmed
target of GH¢32,661.6 million (2.3% of GDP) by 38 percent. This outturn represented a year-on-year decline of 31.1
percent over the outturn of 2024.

Other Expenditure for 2025 was GH¢17,873.8 million, 50.3 percent below the target of GH¢35,948.5 million. This
outturn compares with GH¢23,993.3 million, recorded in the corresponding period of 2024.

Table 4.1: Revenue and Grants

Source: Ministry of Finance

4.3 Budget Balance and Financing
Government budgetary operations resulted in an overall budget deficit (commitment) of GH¢13,856.3 million (1.0% of
GDP) for the period of January-December 2025. This was lower than the expected target of GH¢39,546.3 million (2.8%
of GDP). The corresponding primary balance was a surplus of 2.6 percent of GDP, against a primary surplus target of
1.5 percent of GDP. On cash basis, the overall deficit was GH¢43,400.0 million compared with the target of
GH¢52,613.9 million. This translates into 3.1 percent of GDP compared with a target of 3.8 percent of GDP. The overall
fiscal deficit of GH¢43,400.0 million was financed from domestic and foreign sources. Domestic financing (net) was
GH¢38,550.9 million, higher than the outturn of GH¢41,536.7 million recorded in the same period in 2024. Foreign
financing recorded a net outflow of GH¢6,011.7 million (0.4% of GDP), lower than the target of GH¢19,980.5 million
(1.4 % of GDP).

In GH¢ unless otherwise stated

Prov
Budget
Prov
Prog
Outturn
Revised
Outturn
Q1-Q4
I. REVENUES
Total Revenue & Grants

(per cent of GDP)

Domestic Revenue

(per cent of GDP)

Tax Revenue

(per cent of GDP)

Taxes on Income and Property

(per cent of GDP)

Personal

Company Taxes

Company Taxes on Oil

Other Direct Taxes

Taxes on Domestic Goods and Services

(per cent of GDP)

Excises

VAT

National Health Insurance Levy (NHIL)

GETFund Levy

Communication Service Tax

E-Transaction Levy

Covid-19 Health Levy

International Trade Taxes

(per cent of GDP)

Import Duties

Tax Refunds

(per cent of GDP)

Social Contributions

(per cent of GDP)

Non-Tax Revenue

(per cent of GDP)

Other Revenue

(per cent of GDP)

Grants

(per cent of GDP)

Project Grants

Programme Grants

Deviation Y-O-Y Growth


Table 4.2: Expenditure

Source: Ministry of Finance


Chart 4.1: Budget Balance and Financing

Source: Ministry of Finance

In GH¢ unless otherwise stated

Prov
Budget
Prov
Prog
Outturn
Revised
Outturn
Q1-Q4
II. EXPENDITURE
Total Expenditure (Commitment)

(percent of GDP)

Compensation of Employees

Wages & Salaries

(percent of GDP)

Social Contributions

Use of Goods and Services

(percent of GDP)

Interest Payment

(percent of GDP)

Domestic

External

Subsidies

(percent of GDP)

Grants to Other Government Units

(percent of GDP)

Social Benefits

(percent of GDP)

Other Expenditure

(percent of GDP)

Capital Expenditure

(percent of GDP)

Domestic Financed

Foreign Financed

Outstanding Current Year Expenditure Claims

Deviation Y-O-Y Growth

19 | .4 Public Debt Analysis
The debt to GDP ratio reduced sharply due to the appreciation of the local currency, reduced borrowing cost, high
primary surplus, effective debt management and higher estimated GDP in 2025. The rate of debt accumulation has
declined on the back of these developments, resulting in the decreases in the stock of total public debt at the end of
December 2025. In addition, improved macroeconomic developments have reduced the cost of debt service, however,
the conclusion of the external debt restructuring may result in some legacy issues.

The stock of public debt decreased to 45.3 percent of the estimated GDP in Dec. 2025 from 61.8 percent of GDP in Dec.
2024. Similarly rate of debt accumulation shifted from 19.1 percent in 2024 to negative 11.8 percent by December 2025.

The provisional debt stock of central government and guaranteed debt stood at GH¢640.99 billion (45.3% of GDP) at
end-December 2025 from GH¢726.7 billion (61.8% of GDP) at end-Dec 2024. Out of the total public debt, external debt
was GH¢307.2 billion (21.7% of GDP) and domestic debt totalled GH¢333.8 billion (23.6% of GDP). The sharp decline
is reflected in both external and domestic debt-to-GDP ratios. The decline in the public debt was largely due to
appreciation of the local currency, increased amortisation, and prudent borrowing practices, reduced borrowing cost and
fiscal discipline resulting in the higher primary surplus.

The external debt increased in foreign currency terms to reflect new loan disbursement, but in local currency terms, it
decreased from GH¢416.8 billion in Dec 2024 to GH¢307.2 billion in December 2025. The decline was mainly driven
by strong performance of the Cedi and principal repayments of both Eurobonds and multilateral debt, resulting in a
reduction in the external debt stock denominated in local currency by GH¢125.2 billion (9% of estimated GDP).

The domestic debt, on the other hand, increased modestly from GH¢309.8 billion to GH¢333.8 billion despite the
reduction in the domestic debt to GDP. The rise reflects government’s plan to borrow to build buffers to meet its financial
obligations. The increase in domestic debt came largely from the short-term instruments.

Table 4.3: Public Debt
Source: Bank of Ghana, Ministry of Finance


20 | .5 Risks to the Outlook
Government overperformed in terms of its key fiscal anchor for 2025, reflecting a primary surplus on commitment basis
of 2.6 percent of GDP. This outcome had a damping effect on government’s debt stock and improved sustainability
going forward.

Government is committed to sustaining the improvement by respecting the targets and programmes outlined in the 2026
budget. Revenue mobilisation is expected to improve with the steady implementation of the new revenue measures
outlined in the 2026 budget and the infusion of technology and AI, not only to plug revenue loopholes but also to enhance
efficiency in collections.
Expenditure control and efficiency gains are expected with the scale-up in the implementation of the commitment
authorisation and commencement of the operations of the value for money activity.

In addition, continued fiscal consolidation efforts will help reduce debt accumulation and debt service costs. Also,
sustained improvements in real growth, lower real interest rate and exchange rate stability remain key to achieving
medium-term debt sustainability. Completion of the remaining external debt restructuring negotiations may create
potential short-term external payments challenges, and this may have implications for the domestic currency, and more
domestic savings would be needed to meet future external debt service obligations. High Reserves accumulation remains
key to meet high external debt service payments, and appreciable reserves would be required to contain the exchange
rate pressures.

PUBLIC
5. Monetary and Financial Developments

5.0 Highlights
Growth in monetary aggregates slowed in February 2026 relative to February 2025, consistent with the objective of
anchoring inflation expectations. Broad money supply (M2+) growth was lower at 16.0 percent in February 2026
compared to 33.1 percent in the previous year, while reserve money contracted by 0.5 percent year-on-year in February
2026, relative to a growth of 68.8 percent in February 2025. Nominal credit growth year-on-year remained subdued as
banks continued to favour Bank of Ghana and Government securities. Real private sector credit, however, recorded
modest gains, aided by strong disinflation and gradually improving borrowing conditions. Short-term interest rates fell
sharply on a year-on-year basis, consistent with reductions in the monetary policy rate, while medium-to-long-term
yields held steady. Financial market activity continued to post a strong performance in the first two months of 2026,
with the GSE Composite Index recording notable gains. Market capitalisation also increased on the back of improved
investor sentiment and stronger profitability among listed firms. These developments underscored a gradual
improvement in financing conditions and investor confidence, thereby reinforcing overall stability in the macroeconomy.

5.1 Developments in Monetary Aggregates

Money Supply
Annual growth in broad money supply (M2+) decelerated to 16.0 percent in February 2026 from 33.1 percent in February
2025, marking a significant slowdown in liquidity expansion. This outcome reflected a decline in contributions from
Net Foreign Assets (NFA), while the contribution of Net Domestic Assets (NDA) remained moderate, consistent with
low liquidity creation in the banking system.

The contribution of NFA to overall liquidity growth declined markedly to 5.7 percent in February 2026, compared with
27.3 percent a year earlier. This moderation was driven primarily by valuation effects associated with the appreciation
of the cedi in 2025, which reduced the domestic-currency value of foreign-denominated assets.


Source: Bank of Ghana

The contribution of NDA to M2+ growth increased to 10.3 percent from 5.8 percent in February 2025. This development
was largely underpinned by increases in Net Claims on Government (NCG) and Other Items (Net). The contribution of
NCG to NDA growth was 3.2 percent in February 2026, compared to a contribution of negative 0.4 percent a year earlier,
reflecting in part an increased preference for government securities by the banks. Other Items (Net) accounted for 18.5
percent of the growth in M2+ growth, compared with negative 5.2 percent in February 2025. These upward pressures

per cent
Chart 5.1: M2+ Growth and its Sources (%contributions)
Net Foreign Assets
NDA
Total Liquidity (M2+)
Source: Bank of Ghana

PUBLIC
on NDA were, however, partially offset by a decline in the contribution of claims on the private sector (including public
enterprises) during the review period.


Source: Bank of Ghana

In terms of the composition of M2+ growth, the contribution of savings and time deposits increased to 8.0 percent from
6.2 percent a year earlier, while the contribution of demand deposits increased marginally to 9.7 percent from 9.5 percent
in February 2025, consistent with the trend of stable deposit mobilisation by banks. In contrast, the contribution of
currency declined sharply to 2.8 percent, from 9.4 percent in the previous year, reflecting restrained cash demand.
Foreign currency deposits (FCDs) exerted a significant drag on money supply growth, with its contribution declining to
negative 4.5 percent in February 2026, compared with 7.6 percent in February 2025. This reversal largely reflected
valuation effects from the appreciation of the domestic currency in 2025, as well as a stronger preference for cedidenominated assets amid improved confidence in domestic financial conditions.


Source: Bank of Ghana


per cent
Chart 5.2: Banking Sector NDA and its Sources; per cent contributions
NCG
Claims on Priv. Sect. (Incl. PE's)
BOG OMO Steril. Acc.
OIN
NDA
Source: Bank of Ghana

percent
Curr.
Dem. Dep
Sav and Time Dep.
FCDs
Total Liquidity (M2+)
Source: Bank of Ghana
Chart 5.3: M2+ growth and its component (% contributions)

PUBLIC
5.2 Reserve Money
Reserve Money (RM) growth moderated significantly in February 2026 relative to February 2025, underpinned by the
relatively tight monetary policy stance of the Bank of Ghana during the review period. Accordingly, RM contracted 0.5
percent in February 2026 compared with the growth of 47.8 percent recorded in February 2025.

The decline in RM growth was primarily driven by a contraction in Net Domestic Assets (NDA) of the central bank.
NDA contribution to RM growth declined to negative 24.3 percent in February 2026, compared to a contribution of 10.8
percent in February 2025, on account of intensified Open Market Operations (OMO) aimed at sterilising excess liquidity.
This was, however, moderated by an increase in Net Claims on Government (NCG) and Other Items (Net).

Developments in Net Foreign Assets (NFA) also contributed to the decline in RM growth. Although NFA increased on
a year-on-year basis to GH¢91,519.5 million in February 2026 from GH¢58,014.9 million in February 2025, the pace
of accumulation slowed considerably relative to the strong external inflows recorded in the previous year. The
moderation partly reflected valuation effects associated with the appreciation of the cedi in 2025, which reduced the
domestic-currency value of foreign-denominated assets. As a result, the contribution of NFA to RM growth declined to
23.8 percent in February 2026, from 58.1 percent a year earlier.


Source: Bank of Ghana


Source: Bank of Ghana


Per cent
Chart 5.4: RM Growth and Contribution from NFA and NDA
NDA
NFA
RM growth (y-on-y)
Source: Bank of Ghana

Chart 5.5: BOG NDA and Its Sources (% Contributions)
NCG
NC_DMBs
OMO Ster. A/c
OIN
NDA
Source: Bank of Ghana

PUBLIC
5.3 Deposit Money Banks Credit Developments
Credit conditions in the banking sector remained subdued in February 2026, reflecting banks’ cautious risk-taking stance
and a continued preference for Government and Bank of Ghana securities. Total net credit flows slowed to
GH¢14,571.66 million (15.6 percent) as at end-February 2026, compared with GH¢18,881.31 million (25.3 percent) in
February 2025. The decline was a result of a marked reduction in lending to the public sector, alongside softer credit
expansion to the private economy.

Credit to the public sector contracted significantly during the review period. Public sector credit declined by
GH¢1,762.62 million (-27.8 percent) in February 2026, in contrast with the GH¢357.58 million (6.0 percent) expansion
recorded a year earlier. This decline reflected the ongoing fiscal consolidation, which had resulted in reduced
government borrowing from the banking system during the period.

Notwithstanding a moderation in growth in credit to the public sector, the private sector remained the primary recipient
of new lending. Private sector credit expanded by GH¢16,334.27 million (18.7 percent) between February 2025 and
February 2026, although this reflected a moderation from the increase of GH¢18,523.73 million (26.9 percent growth)
recorded a year earlier. The private sector’s share of total outstanding credit, however, increased to 95.8 percent from
93.7 percent in February 2025. Nominal private sector credit stood at GH¢103,667.90 million at end-February 2026,
compared with GH¢87,333.63 million recorded in February 2025.

Sectoral breakdown of private-sector credit flows indicated that the Services sector received the largest proportion of
annual credit flows of GH¢9,164.21 million (32.6 percent) in February 2026, significantly higher than the flows of
GH¢5,305.02 million (23.2 percent) recorded same time last year. The Mining and Quarrying sector also received
increased flows of GH¢2,965.95 million (110.2 percent) in February 2026 compared with GH¢451.11 million (20.1
percent) a year earlier. Credit flows to the transport, storage and communication sector, however, declined significantly
during the period under review.


Source: Bank of Ghana


Chart 5.6: Sectoral Shares in Credit to the Private sector (%)
Feb-25
Feb-26

PUBLIC

Source: Bank of Ghana

In real terms, private sector credit growth remained positive, supported by the significant decline in inflation. Real
private sector credit grew by 14.9 percent in February 2026, compared to 3.1 percent in February 2025. This reflected
an improving trend in real private sector growth since the second half of 2025. Real private sector credit growth remained
marginally above its long-term trend level in February 2026.

5.4 Money Market Developments
Interest rate developments in February 2026 showed broad declines consistent with the easing cycle initiated by the
Bank of Ghana since the second half of 2025 and the continued trend in disinflation. These movements contrast sharply
with conditions in February 2025, when rates remained elevated, consistent with tight monetary conditions aimed at
anchoring inflation expectations.

The Monetary Policy Rate (MPR) declined significantly to 15.5 percent in February 2026, from 27.0 percent in February
2025. The 11.5 percentage points reduction in the MPR reflected the cumulative policy easing undertaken in 2025 and
2026, as inflation pressures abated and the macroeconomic environment stabilised. The corresponding downward
adjustment in the overnight reverse repo and deposit rates reinforced the easing monetary policy stance.

Short-term money market conditions broadly mirrored developments at the policy level. The Interbank Weighted
Average Rate declined to 12.6 percent in February 2026 from 27.0 percent a year earlier, indicating a declining cost of
overnight borrowing. Similarly, the average lending rate of banks eased to 19.2 percent from 30.1 percent in February
2025, reflecting a pass-through of the reduction in policy rate to market rates. Real rates, however, remained broadly
positive on account of the faster pace of disinflation relative to the declines in nominal rates during the review period.

Developments in the Treasury bill market were consistent with the general decline in interest rates. The 91-day, 182day, and 364-day Treasury bill rates declined sharply to 9.0 percent, 10.8 percent, and 11.5 percent, respectively,
compared with 26.9 percent, 27.7 percent, and 28.9 percent a year earlier. This decline reflects sustained investor demand
at the short end of the curve and ongoing efforts to reduce Government’s domestic financing costs. Rates on medium-
to long-term Government securities such as the 2-year, 3-year, 5-year, 6-year, 7-year, 10-year, 15-year, and 20-year
bonds, however, remained broadly unchanged, given limited activity in that segment of the market.

Chart 5.7: Growth in Real Private Sector Credit (RGPSC) vs. MA Trend
RGPSC
Trend

PUBLIC

Source: Bank of Ghana


Source: Bank of Ghana


Chart 5.8: MPR, Depo, Reverse Repo, Interbank and T-bill Rates and Inflation
Reverse Repo(Daily)
MPR
Depo Rate
91-Day T-bill rate
Inter-Bank rate
Inflation

Chart 5.9: Yield Curve
Feb-25
Feb-26

PUBLIC

Source: Bank of Ghana

5.5 Stock Market Developments
Activity on the Ghana Stock Exchange (GSE) strengthened in February 2026, supported by improved investor sentiment,
stronger corporate earnings, and continued macroeconomic stability. The GSE Composite Index (GSE-CI) closed the
month at 12,869.2 points, compared with 5,659.8 points in February 2025, representing a growth rate of 127.4 percent.
This marked improvement reflects sustained buying interest across key counters, improved profitability among listed
firms, and renewed portfolio inflows as inflation eased and financial conditions stabilised. Sectoral performance was
broadly positive, with notable contributions from the Food and Beverage Agriculture, Distribution, and Finance and IT
sectors with annual growth rates of 178.7, 175.9 percent, 168.3 percent and 157.4 percent, respectively.

The GSE Financial Stocks Index (GSE-FI) also recorded significant growth, rising to 7,692.9 points in February 2026
from 2,814.3 points a year earlier. The strong performance of financial stocks mirrors the sector’s continued recovery
following balance-sheet adjustments undertaken in the aftermath of the Domestic Debt Exchange Programme (DDEP)
and enhanced earnings performance in the financial system.

Market capitalisation continued its upward trajectory, increasing to GH¢235,736.20 billion at end-February 2026 from
GH¢127,820.29 billion in February 2025. This represents a substantial expansion in overall market value, driven
primarily by appreciable gains in share prices across both financial and non-financial sectors. The sharp rise in market
capitalisation also reflects renewed investor confidence in the equity market, improved corporate performance, and the
broader macroeconomic gains achieved during the year.

5.6 Conclusion
Monetary developments in February 2026 remained relatively tight compared to monetary conditions in the same period
last year. Growth in both broad money (M2+) and reserve money moderated sharply in February 2026 relative to the
elevated levels observed in February 2025, while nominal credit growth moderated over the review period,
notwithstanding the pickup in real private sector credit growth over the same comparative period.

In the money market, short-term interest rates declined on a year-on-year basis, in line with Government’s fiscal
consolidation efforts. Policy rate adjustments flowed through the market, with declines in the interbank rate and average

percent
Chart 5.10: Real Interest Rates and Inflation
Real MPR
Real 91 Day T-bill Rate
Real Interbank Rate
Real Lending Rate
Real Deposit Rate
Inflation

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lending rate easing the cost of financing for firms and households. Notwithstanding the substantial fall in inflation, real
interest rates remained positive, reinforcing the Bank’s relatively tight policy stance despite the nominal easing.

Activity on the Ghana Stock Exchange continued to pick up in February 2026, with the GSE Composite Index and GSE
Financial Index recording substantial year-on-year gains. Market capitalisation expanded markedly, driven by broad
share price appreciation—particularly among financial, IT, and distribution sectors. The recovery in stock valuations
reflects improved profitability of listed firms, renewed investor confidence, and a stabilising macroeconomic
environment.

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6. Banking Sector Developments and Macroprudential Risk Assessment

6.0 Highlights
The banking sector posted a strong performance during the first two months of 2026, on the back of sustained growth
in total assets and deposits. The industry’s balance sheet was robust, with growth in assets in February 2026 funded
principally by deposits and other funding sources. The industry was profitable as profit-before-tax (PBT) and profitafter-tax (PAT) for February 2026 was higher compared to profits in February 2025. The Financial Soundness
Indicators (FSIs) for the banking sector, except for core liquidity and profitability, remained broadly positive with
improvements in solvency, efficiency and asset quality indicators in February 2026 relative to February 2025. The
industry’s Non-Performing Loans (NPL) improved in February 2026 on account of a higher growth in loans and
advances relative to a contraction in the NPL stock. The outlook for the banking sector remains largely stable, dependent
on banks’ adherence to the NPL regulatory guidelines and enforcement of strict credit underwriting standards.
Financial intermediation by banks is expected to pick up as monetary policy continues to ease, which can lead to
expansion in credit to the private sector as an engine of growth and spur the real sector activities in the domestic
economy.

6.1 Banks’ Balance Sheet
Total assets of the banking industry grew by 21.0 percent (year-on-year) to GH¢465.4 billion as at February 2026, lower
than the 34.0 percent growth recorded in the same period of 2025. Domestic assets picked up by 28.8 percent in February
2026, from 29.3 percent in February 2025, while foreign assets contracted by 36.9 percent in February 2026 from a
growth of 83.2 percent during the same period a year ago. Consequently, the share of domestic assets improved to 93.8
percent from 88.0 percent during the reference period, while the share of foreign assets in total assets declined to 6.2
percent in February 2026 from 12.0 percent in a similar period in 2025.

In terms of components, growth in investments surged significantly in February 2026 relative to February 2025 on
account of the pick-up in rates on the money market during the review period. Investments grew by 57.5 percent in
February 2026 to GH¢192.8 billion, compared to a growth of 8.6 percent recorded in February 2025. The significant
growth in investments reflected in growth in short-term investments, which grew to 130.1 percent in February 2026
from 1.6 percent in February 2025, on account of the increase in rates on the money market. Long-term investments,
however, contracted by 1.4 percent in February 2026 compared to a growth rate of 14.7 percent in February 2025.

Credit growth slowed in the industry in February 2026. Gross loans and advances grew by 15.6 percent to GH¢108.2
billion at end-February 2026 from 25.2 percent in February 2025. Growth in net loans and advances (gross loans adjusted
for provisions and interest in suspense) also decreased to 20.5 percent from 25.3 percent over the same review period.

Deposits remained the main source of funding for the banking sector, growing by 18.0 percent to GH¢338.5 billion as
at end-February 2026 from GH¢286.9 billion in February 2025, driven mainly by increases in deposits from domestic
sources. The industry’s shareholders’ funds position (comprising paid-up capital and reserves) continued to improve on
account of the strong profit outturn and some recapitalisation efforts of banks. Accordingly, shareholders’ funds grew
by 44.1 percent to GH¢60.6 billion as at end-February 2026 compared to a 40.0 percent growth in February 2025.
Borrowings also grew by 40.3 percent to GH¢39.8 billion in February 2026, compared to a growth of 96.0 percent
recorded a year earlier.

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Table 6.1: Key Developments in DMBs’ Balance Sheet

Source: Bank of Ghana


6.1.1 Asset and Liability Structure
The asset structure of the industry’s balance sheet in February 2026 reflected the rebalancing of banks’ portfolio in
favour of investments. Consequently, investments (comprising bills, securities, and equity) were the largest component
of total assets, with its share improving from 31.8 percent to 41.4 percent compared to the same period in 2025, following
a pickup in rates on the money market during the review period. The share of cash and bank balances in total assets,
however, decreased from 38.9 percent in February 2025 to 30.3 percent in February 2026 on account of portfolio
rebalancing away from less risky assets. Similarly, the proportion of net advances in total assets was stable at 20.0
percent from 20.1 percent while the share of non-earning assets (fixed assets and other assets) declined from 9.2 percent
to 8.4 percent during the review period.

On the liability side, the share of deposits in banks’ liabilities and shareholders’ funds decreased to 72.7 percent in
February 2026 from 74.6 percent in February 2025, reflecting the slowdown in deposit growth in 2026. The increase in
borrowings, however, translated into an increased share of 8.5 percent in February 2026 from 7.4 percent in February
2025. The proportion of shareholders’ funds in banks’ total funding also improved to 13.1 percent in February 2026
from 11.0 percent a year earlier, while the share of other liabilities declined from 6.9 percent to 5.5 percent during the
same comparative period.


Feb-25
Dec-25
Feb-26
Feb-25
Dec-25
Feb-26
Feb-25
Feb-26
TOTAL ASSETS
384,726.3

446,900.7

465,378.9

34.0

21.5

21.0

100.0

100.0

A. Foreign Assets
46,029.9

26,464.7

29,029.8

83.2

(41.0)

(36.9)

12.0

6.2

B. Domestic Assets
338,696.4

420,436.0

436,349.1

29.3

30.2

28.8

88.0

93.8

Investments
122,401.1

175,444.0

192,801.7

8.6

55.2

57.5

31.8

41.4

i. Bills
54,493.3

109,333.5

125,411.2

1.6

139.8

130.1

14.2

26.9

ii. Securities
67,494.3

65,296.4

66,553.4

14.7

(2.7)

(1.4)

17.5

14.3

Advances (Net)
77,089.5

94,425.4

92,892.8

25.3

19.3

20.5

20.0

20.0

of which Foreign Currency
23,423.4

20,861.4

21,458.4

7.9

(9.7)

(8.4)

6.1

4.6

Gross Advances
93,670.3

110,972.7

108,241.9

25.2

16.2

15.6

24.3

23.3

Other Assets
25,403.4

27,793.9

28,164.0

48.7

16.4

10.9

6.6

6.1

Fixed Assets
9,484.5

10,639.6

10,544.3

14.3

19.2

11.2

2.5

2.3

TOTAL LIABILITIES AND CAPITAL
384,726.3

446,900.7

465,378.9

34.0

21.5

21.0

100.0

100.0

Total Deposits
286,920.9

325,262.7

338,546.1

27.9

17.8

18.0

74.6

72.7

of which Foreign Currency
91,510.3

71,597.0

75,036.1

27.0

(16.2)

(18.0)

23.8

16.1

Total Borrowings
28,334.1

37,850.3

39,757.6

96.0

35.6

40.3

7.4

8.5

Foreign Liabilities
6,923.6

4,934.8

4,143.3

3.5

(13.9)

(40.2)

1.8

0.9

i. Short-term borrowings
2,560.0

2,377.5

1,551.6

13.8

32.1

(39.4)

0.7

0.3

ii. Long-term borrowings
2,746.0

1,337.3

1,296.5

(27.4)

(52.9)

(52.8)

0.7

0.3

iii. Deposits of non-residents
1,570.9

1,184.7

1,267.2

138.7

10.0

(19.3)

0.4

0.3

Domestic Liabilities
335,415.0

383,618.5

400,465.3

34.5

19.1

19.4

87.2

86.1

i. Short-term borrowing
21,244.1

31,658.0

34,712.2

200.5

46.2

63.4

5.5

7.5

ii. Long-term Borrowings
1,784.0

2,477.5

2,197.3

31.6

52.7

23.2

0.5

0.5

iii. Domestic Deposits
285,350.0

324,078.0

337,278.9

27.5

17.8

18.2

74.2

72.5

Other Liabilities
26,527.9

24,155.0

25,634.0

51.2

4.3

(3.4)

6.9

5.5

Paid-up capital
17,118.3

21,741.5

21,717.0

31.3

27.0

26.9

4.4

4.7

Shareholders' Funds
42,175.6

58,335.4

60,758.2

40.0

46.3

44.1

11.0

13.1

(GH ¢'million)
Y-on-Y Growth (%)
Shares (%)
Table 5.1: Key Developments in DMBs' Balance Sheet

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Figure 6.1: Developments in Banks’ Balance Sheet & Asset Quality

Source: Bank of Ghana Staff Calculations

6.1.2 Share of Banks’ Investments
Bills (short-term debt instruments) constituted the largest component of banks’ investment portfolio with its share
increasing from 44.5 percent in February 2025 to 65.0 percent in February 2026. The share of long-term securities,
however, declined from 55.1 percent in February 2025 to 34.5 percent in February 2026, in line with the contraction in
its growth recorded during the reference period. Equity investments remained negligible, although their share increased
marginally from 0.3 percent in February 2025 to 0.4 percent in February 2026.

6.2 Credit Risk
The industry’s asset quality improved in February 2026 relative to February 2025, reflecting a decline in both the nonperforming loan (NPL) ratio and the NPL stock during the review period.


Feb-24
Feb-25
Dec-25
Feb-26
Components of Banks' Investments (% share)
Bills
Securities
Shares & Other Equities

Feb-24
Feb-25
Dec-25
Feb-26
Asset Structure of Banks (%)
Cash and Due from Banks
Investments
Net Advances
Others

Feb-24
Feb-25
Dec-25
Feb-26
Liability Structure of Banks (%)
Total Deposits
Total Borrowings
Shareholders' Funds
Other Liabilities

Components of Banks' Credit Portfolio (%)
Private sector
Public sector

Agric, Forest. & Fishing
Mining & Quarrying
Manufacturing
Construction
Elect., Water & Gas
Commerce and Finance
Transp., Stor. & Commu.
Services
Miscellaneous
Distribution of Credit by Sector (%)
Feb-26
Feb-25

Agric, Forest. & Fishing
Mining & Quarrying
Manufacturing
Construction
Elect., Water & Gas
Commerce and Finance
Transp., Stor. & Commu.
Services
Miscellaneous

NPL ratio in each Sector (%)
Feb-26
Feb-25

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6.2.1 Credit Portfolio Analysis
The stock of gross loans and advances increased by 15.6 percent in February 2026 to GH¢108.2 billion, compared to a
growth of 25.2 percent in February 2025, reflecting increases in private sector credit. Private sector credit (comprising
credit to private enterprises and households) grew by 18.7 percent to GH¢103.7 billion in February 2026 compared to a
growth of 26.9 percent in the previous year. However, public sector credit contracted by 27.8 percent to GH¢4.6 billion
at end-February 2026 after the growth of 6.0 percent in February 2025. Consequently, the share of private sector credit
in total credit rose to 95.8 percent in February 2026 from 93.2 percent in February 2025, while the share of public sector
declined to 4.2 percent from 6.8 percent a year earlier.

In terms of the distribution of credit by sectors, the services sector remained the largest beneficiary of the industry’s
credit, accounting for a share of 36.7 percent at end-February 2026 (from 32.6 percent in February 2025), followed by
the commerce and finance sector with a share of 23.0 percent (from 25.9 percent in February 2025). The share for the
manufacturing sector remained at 11.0 over the period. These three sectors constituted 70.8 percent of total credit in
February 2026, compared with 69.5 percent in February 2025. The electricity, water and gas sector was the lowest
recipient of total credit with a share of 3.1 percent in February 2026, compared to 4.0 percent recorded a year earlier.

6.2.2 Off-Balance Sheet Activities
Off-balance sheet transactions (largely trade finance and guarantees) declined during the review period. Banks’
contingent liabilities contracted by 13.0 percent to GH¢20.4 billion as at end-February 2026, from GH¢23.4 billion as
at end-February 2025 (y/y growth of 0.3 percent). In relative terms, contingent liabilities as a percentage of total
liabilities also declined to 5.0 percent in February 2026 from 6.8 percent in February 2025.

6.2.3 Asset Quality
Asset quality risks remained elevated in February 2026, even though the industry’s NPL ratio declined to 18.4 percent
in February 2026 from 22.6 percent in February 2025. Similarly, the NPL ratio adjusted for the fully provisioned loan
loss category declined from 8.9 percent to 5.4 percent during the same comparative period. The NPL stock also
contracted by 5.8 percent to GH¢19.9 billion in February 2026 compared with a growth of 14.9 percent recorded in
February 2025.

Decomposition of the NPL showed that the private sector accounted for the most non-performing loans, in line with its
dominant holdings in total credit. The proportion of NPLs attributable to the private sector increased to 98.1 percent in
February 2026 from 96.2 percent in February 2025, while that of the public sector declined to 1.9 percent from 3.8
percent a year earlier.

The decline in the industry NPL ratio year-on-year reflected improvements in asset quality across all but the agriculture,
forestry and fishing sector during the review period. Accordingly, the NPL ratio in the agriculture, forestry and fishing
sector increased from 51.6 percent to 54.7 percent during the review period. All other sectors recorded improvements in
asset quality during the review period.

6.3 Financial Soundness Indicators
The financial soundness indicators in February 2026 were broadly positive following improvements in solvency,
efficiency, and asset quality indicators. Liquidity and profitability indicators, however, moderated during the review
period.

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Figure 6.2: Key Financial Soundness Indicators

Source: Bank of Ghana Staff Calculations


6.3.1 Liquidity Indicators
The industry’s liquidity position remained strong in February 2026; however, performance across liquidity indicators
was uneven, with a notable divergence between core liquidity and broad liquidity measures. This suggests that while
aggregate funding capacity remains adequate, underlying structural liquidity dynamics may require closer monitoring
to ensure sustained short-term resilience. Core liquidity declined in February 2026 as industry players decreased their
cash and bank holdings, while broad liquidity increased due to the surge in investments. The ratio of core liquid assets
(mainly cash and due from banks) to total deposits decreased from 52.1 percent at end-February 2025 to 41.6 percent in
February 2026, while the ratio of core liquid assets to total assets also decreased from 38.9 percent to 30.3 percent over
the same comparative period. However, the ratio of broad liquid assets to total deposits increased from 94.6 percent to
98.3 percent while the ratio of broad liquid assets to total assets increased to 71.5 percent from 70.6 percent during the
review period.

6.3.2 Capital Adequacy Ratio
The industry’s solvency position, measured by the Capital Adequacy Ratio (CAR), stood at 18.6 percent in February
2026, up from 12.1 percent a year earlier and above the prudential minimum of 13 percent. This improvement in the
solvency of the banking sector was due to the recapitalisation efforts by undercapitalised banks.

6.3.3 Profitability
Profitability of the banking sector as at end-February 2026 increased relative to the outturn as at end- February 2025.
The industry recorded profit-after-tax (PAT) of GH¢2.5 billion as at end-February 2026 compared to GH¢2.0 billion in
the same period a year earlier. As a result, growth in PAT increased to 24.1 percent in February 2026 from 23.1 percent
in the previous year. Similarly, profit-before-tax (PBT) recorded a growth of 21.0 percent in February 2026 relative to
a growth of 20.7 percent in February 2025.

Feb-24
Feb-25
Dec-25
Feb-26
Efficiency Indicators (%)
Cost to income
Operational Cost to gross income
Cost to total assets (RHS)
Operational Cost to total assets (RHS)

Feb-24
Feb-25
Dec-25
Feb-26
Profitability (%)
Return On Equity (%) after tax
Return On Assets (%) before tax

Feb-24
Feb-25
Dec-25
Feb-26
Asset Quality
SUB-STD (GH¢m)
DOUBTFUL (GH¢m)
LOSS (GH¢m)
Adjusted NPL Ratio (%)
NPL Ratio (% Right Axis)

Feb-24
Feb-25
Dec-25
Feb-26
Solvency (%)
RWA/Total Assets
CAR (with Reliefs)
CAR

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Except for other income, which recorded a higher growth rate in 2026 relative to 2025, all income lines grew in February
2026, but at a slower pace compared to the same period last year. Growth in net interest income was lower at 6.2 percent
in 2026 from 11.0 percent in 2025, reflecting the decline in growth in interest income, which was due to the decline in
lending rates and rates on money market instruments during the review period. Fees and commissions, however,
contracted by 0.6 percent in 2026 relative to a growth of 35.8 percent in 2025.

Similar declines in growth in cost lines outweighed the impact of the decline in growth in income lines on the bottom
line. The industry’s operating expenses grew by 6.1 percent in February 2026, compared to 24.7 percent in 2025,
reflecting the moderation in growth in staff costs and non-staff related expenses. Provisions for depreciation, bad debt,
and impairment losses on financial assets also grew by 43.4 percent in February 2026 compared to the 55.5 percent
contraction recorded in February 2025.

Figure 6.3: Composition of Income, Cost and Borrowing

Source: Bank of Ghana Staff Calculations

(a) Return on Assets and Return on Equity
Profitability indicators for the banking sector declined in February 2026. The sector’s Return on Assets (ROA) declined
marginally to 4.6 percent in February 2026 from 4.7 percent in February 2025. In addition, banks’ Return on Equity
(ROE) decreased to 24.3 percent in February 2026 from 28.5 percent in February.

(b) Interest Margin and Spread
Interest spread for the industry narrowed from 2.0 percent in February 2025 to 1.5 percent in February 2026. The
decrease in spread resulted from the marginal decline in interest payable to 0.7 percent from 0.9 percent a year earlier.
Gross yields also declined to 2.2 percent in February 2026 compared to 2.8 percent a year ago. The ratio of gross income
to total assets (asset utilisation) also dropped from 2.2 percent to 2.0 percent, whereas the profitability ratio recorded an
increase from 23.3 percent in February 2025 to 26.2 percent in February 2026.

Composition of Cost (%)
Interest Expense
Operating Expense
Total Provision
Tax

Composition of Banks' Income (%)
Investments
Loans
Fees & Commissions
Other Income

Feb-23
Feb-24
Feb-25
Dec-25
Feb-26
Banks' Borrowing by Source (% of Total)
Domestic Borrowing
Foreign Borrowing

Feb-23
Feb-24
Feb-25
Dec-25
Feb-26
Banks' External Borrowing by Maturity (% of
Total)
Short-term borrowings
Long term borrowings

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(c) Composition of Banks’ Income
Interest income from investments continued to be the largest component of banks’ total income in February 2026, with
its share increasing from 42.7 percent to 44.3 percent during the review period. The share of interest income from loans
declined from 35.7 percent to 29.2 percent. The share of banks’ income from fees and commissions, likewise, decreased
from 12.5 percent to 11.3 percent, while the share of income from other sources increased from 9.1 percent to 15.2
percent during the same reference period.

6.3.4 Operational Efficiency
The banking sector was relatively cost-efficient as a result of the slowdown in the growth of operating expenses during
the period under review. The cost-to-income ratio fell from 76.7 percent in February 2025 to 73.8 percent in February
2026, while the cost-to-total assets ratio also declined marginally from 1.7 percent to 1.5 percent. The operational cost
to gross income ratio increased marginally from 50.0 percent to 50.1 percent, whereas the operational cost to total asset
ratio improved from 1.1 percent to 1.0 percent over the same comparative period.

6.3.5 Banks’ Counterparty Relationships
Total offshore balances contracted by 35.8 percent to GH¢27.0 billion in February 2026, compared to the 102.6 percent
growth recorded in the previous year. This was largely driven by contractions in nostro balances and placements. Nostro
balances contracted by 46.4 percent in February 2026 compared with a growth of 89.9 percent in February 2025. Growth
in industry placements also contracted by 28.1 percent in February 2026 compared to the growth of 113.6 percent during
the same period last year. Consequently, the ratio of offshore balances to net worth decreased significantly to 44.4
percent in February 2026 from 99.8 percent in February 2025.

The share of banks’ external borrowings in total borrowings declined to 7.2 percent in February 2026 from 18.7 percent
in February 2025, while the share of domestic borrowings increased to 92.8 percent from 81.3 percent in February 2025.
Banks’ external borrowings were largely short-term in nature, as the share of short-term borrowings in total external
borrowings increased to 54.5 percent, from 48.2 percent, while the share of long-term borrowings declined to 45.5
percent, from 51.8 percent a year earlier.

6.4 Credit Conditions Survey
Banks reported a net tightening in the stance on loans to corporates in the February 2026 Credit Conditions Survey round
compared to the December 2025 survey round. The net tightening in the overall credit stance to corporates was due to a
net tightening stance on all sub-categories except for small and medium enterprises. Banks project the overall stance on
loans to corporates to ease in the next two months of 2026 from a projected net ease in the stance on all sub-categories.

The stance on loans to households, however, eased during the first two months of 2026. The net easing in the overall
credit stance to households was due to the eased stance on loans for house purchases, consumer credit and other lending.
Banks projected a further easing in the overall stance on household loans in the next two months, driven by an easing in
the stance on loans for consumer credit and other lending.

The February 2026 survey round pointed to a softening in the overall demand for credit by corporates, which reflected
in increases in demand for loans for all sub-categories. Credit demand by corporates is, however, projected to be stronger
in March and April 2026.

Banks reported an increase in the demand for loans by households in the first two months of 2026, driven by increases
in demand for loans for house purchases as well as consumer credit. Demand for household loans is projected to pick
up further in the next two months of 2026.

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Figure 6.4: Credit Conditions Survey Results

Source: Bank of Ghana Staff Calculations

6.5 Macroprudential Risk Assessment

Credit-to-GDP3
The Credit-to-GDP4 gap widened slightly in February 2026 relative to the level reported at the previous MPC meeting,
though it remains negative. This negative gap indicates limited systemic vulnerabilities from excessive credit growth
and supports a measured expansion of credit, underpinned by improving macroeconomic conditions and prudent credit
risk management.

Figure 6.6: Credit-to-GDP Gap

Source: Bank of Ghana

3 The Credit-to-GDP gap is an early warning signal that measures excessive credit growth by comparing the private sector credit-to-GDP ratio to its optimal trend.
A positive gap signals that credit levels have surpassed their sustainable or optimal trend, highlighting potential risks of credit overheating in the economy.
4 The Credit-to-GDP gap is an early warning signal that measures excessive credit growth by comparing the private sector credit-to-GDP ratio to its optimal trend.
A positive gap signals that credit levels have surpassed their sustainable or optimal trend, highlighting potential risks of credit overheating in the economy.

NPR (%)
Loans for house purchase
Consumer credit and other lending
Overall stance to Households
Households
Index, a rise denotes
tightening

NPR (%)
Loans for house purchase
Loans for consumer credit
Overall Household demand for loans
Households
Index, a rise denotes
increase in demand

NPR (%)
Small and Medium Enterprises
Large Enterprises
Overall Credit Stance for Enterprises
Short term enterprise loans
Long term enterprise loans
Index, a rise
denotes tightening
Corporates

NPR (%)
Overall Demand for credit
Small and Medium Enterprises
Large Enterprises
Short term
Long term
Index, a rise denotes
increase in demand
Corporates

2008Q1
2008Q4
2009Q3
2010Q2
2011Q1
2011Q4
2012Q3
2013Q2
2014Q1
2014Q4
2015Q3
2016Q2
2017Q1
2017Q4
2018Q3
2019Q2
2020Q1
2020Q4
2021Q3
2022Q2
2023Q1
2023Q4
2024Q3
2025Q2
2026Q1
CTGDP_GAP
LOWER_THRESHOLD

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Banking Sector Soundness Index (BSSI)5
The banking sector’s soundness improved year-on-year and strengthened relative to the level reported at the previous
MPC. This reflects marked moderation in financial stability risks relative to the preceding year. The moderation in risks
stems from improvements in solvency, asset quality, sustained profitability, adequate liquidity, and efficiency.
Accordingly, the Banking Sector Soundness Index (BSSI)6, which tracks soundness of the industry, trended upward
significantly in February 2026 compared to February 2025. The observed improvement was driven by increased
recapitalisation, a slowdown in the build-up of non-performing loans, sound credit and liquidity risks management,
anchored on improved corporate governance systems and the sustained recovery in macroeconomic fundamentals. The
outlook of the banking sector remains positive, underpinned by a favourable macroeconomic environment, enhanced
supervision, improved capital buffers, sustained earnings, and further strengthening of risk management systems.

Figure 6.7: Banking Sector Soundness Index (BSSI)

Source: Bank of Ghana


FSI Heatmap7
The heatmap of financial soundness indicators continued to show a sound banking sector. The heatmap showed that the
banking sector remains well-capitalised, profitable, cost-efficient, and liquid as at end-February 2026. Asset quality
measures have improved over the same period (now the 3rd-best performing period); however, NPLs remain elevated,
and the enforcement of prudential NPL-reduction measures is expected to help banks reduce NPLs amid improving
macroeconomic outcomes.


5 The BSSI is a composite index that combines a set of financial soundness indicators relating to capital adequacy, asset quality, management efficiency, earnings,
and liquidity. An upward-trending BSSI connotes a general improvement in the performance of the banking system.
6 The BSSI is a composite index that combines a set of financial soundness indicators relating to capital adequacy, asset quality, management efficiency, earnings,
and liquidity. An upward-trending BSSI connotes a general improvement in the performance of the banking system.
7 The heat map is a quartile-based analysis that reflects the performance of the banking system over a period of time (using monthly
data), starting from January 2007 to date.


Feb-07
Feb-08
Feb-09
Feb-10
Feb-11
Feb-12
Feb-13
Feb-14
Feb-15
Feb-16
Feb-17
Feb-18
Feb-19
Feb-20
Feb-21
Feb-22
Feb-23
Feb-24
Feb-25
Feb-26
BSSI and its Long-term trend
Core BSSI
Long-term trend
Mean

PUBLIC
Table 6.2: Heatmap


Color Code
Green
Blue
Yellow
Red
Performing Period
1st Best
2nd Best
3rd Best
4th Best
Source: Bank of Ghana

Systemic Risk Survey- January 2026
The Bank of Ghana conducts a Systemic Risk Survey (SRS) of banks to assess their perception of risks to, and level of
confidence in, the financial system. The SRS is a semi-annual survey aimed at tracking banks’ perception of financial
stability risks in a forward-looking manner. The results of the survey conducted in January 2026 suggest that banks
expect risks to banking sector soundness and macroeconomic stability to moderate further over the next one year. In the
outlook, banks expect risks to soundness to moderate, driven by perceived improvements in liquidity, asset quality and
solvency conditions. However, risks emanating from earnings are perceived to be high in the near to medium term,
driven mainly by the current low-interest-rate environment.

Figure 6.8: Decomposition of the Overall FSI Risk Index- 1year ahead


FSIs
Dec-22
Feb-23 Dec-23 Feb-24 Mar-24 Jun-24 Sep-24 Dec-24 Feb-25 Mar-25 Jun-25
Sep-25
Dec-25 Feb-26
Capital Adequacy
Regulatory capital to risk weighted assets (Threshold)
15.44

12.60

13.87

13.58

15.88

14.27

14.38

14.00

14.35

17.10

19.29

17.52

17.51

18.65

Regulatory capital to risk weighted assets (Distribution)
15.44

12.60

13.87

13.58

15.88

14.27

14.38

14.00

14.35

17.10

19.29

17.52

17.51

18.65

Regulatory tier I capital to risk-weighted assets
14.25

10.74

11.04

11.03

13.56

11.46

11.51

11.13

11.74

14.89

16.62

14.75

15.58

16.90

Asset Quality
Nonperforming loans net of loan-loss provision to capital
10.32

8.48

14.55

17.09

19.45

15.36

12.29

11.10

10.82

11.98

8.32

8.32

7.62

7.51

Nonperforming loans to total gross loans
16.59

16.56

20.58

24.61

26.74

24.13

22.77

21.79

22.57

23.44

23.09

20.43

18.92

18.40

Banks provisions to NPL
83.58

84.41

73.19

72.03

71.70

75.66

78.35

78.74

78.42

76.67

80.73

79.10

78.82

77.08

Earnings
Return on assets
(3.83)

5.07

5.37

5.20

5.63

5.40

5.05

5.04

4.67

4.96

5.61

5.70

5.66

4.62

Return on equity
(25.48)

32.39

34.16

32.72

36.36

35.25

32.12

30.84

28.51

29.92

32.21

31.61

30.81

24.27

Interest margin to gross income
47.82

46.38

51.80

53.58

54.23

51.41

51.10

50.92

51.72

51.82

50.11

50.16

50.75

49.85

Liquidity
Core liquid assets to total assets
27.53

26.65

29.34

29.22

31.00

34.47

35.39

36.16

37.41

36.24

27.50

27.22

28.78

29.53

Core liquid assets to short-term liabilities
33.21

32.79

35.47

35.40

37.34

41.39

42.54

43.31

45.23

43.47

33.68

33.00

35.29

36.14

Core liquid assets to total deposits
36.47

35.35

37.61

37.37

40.06

45.31

46.82

48.16

50.15

48.20

37.73

37.65

39.54

40.60

Broad liquid assets to total assets
59.45

62.47

65.72

68.40

68.38

67.55

67.58

66.87

69.08

69.44

69.67

69.65

67.85

70.78

Broad liquid assets to short-term liabilities
71.71

76.87

79.46

82.88

82.34

81.10

81.23

80.09

83.53

83.30

85.31

84.46

83.20

86.61

Efficiency
Noninterest expenses to gross income
97.04

43.64

43.04

41.01

38.86

37.65

39.43

40.83

38.63

37.78

35.70

34.98

35.20

38.29

Personnel expenses to gross income
16.45

15.03

15.67

16.27

16.19

16.62

16.67

16.45

18.21

17.25

16.71

16.78

17.11

18.92


Jan-23
Jul-23
Jan-24
Jul-24
Jan-25
Jul-25
Jan-26
Solvency Risk
Asset Quality Risk
Expense/Efficiency Risk
Earnings Risk
Liquidity Risk
FSI Index

PUBLIC

Generally, the perception of the likelihood and impact of risks emanating from the macroeconomy is expected to
moderate in the near to medium term. Additionally, banks are largely optimistic about the stability of the financial
system in the near to medium term.

Figure 6.9: Perceived Likelihood of Occurrence vis-à-vis Greatest Impact of Risks


6.6 Conclusion and Outlook
The banking sector’s performance in the first two months of 2026 reaffirmed its resilience amid improving macrofinancial conditions. Growth in assets improved in February 2026 relative to February 2025, driven principally by strong
growth in both deposits and other funding sources. Robust asset growth, predominantly due to a pickup in investment
holdings, reflected a cautious portfolio rebalancing strategy in response to credit risk considerations. Financial soundness
indicators generally improved year-on-year, except for core liquidity, which warrants close monitoring given its potential
implications for short-term funding stability. The industry’s solvency position improved in February 2026 relative to
February 2025, with the industry Capital Adequacy Ratio (CAR) improving due to recapitalisation of the sector as well
as sustained profitability in the industry. Although the NPL ratio moderated, asset quality concerns remain, representing
an upside risk to the banking sector. Overall, the industry’s outlook remains stable, conditional on the recapitalisation
of the sector by the end of March 2026, as well as the implementation of Bank of Ghana’s NPL regulatory guidelines to
address asset quality concerns in the sector.

The macroprudential risk assessment shows that, generally, risks to financial stability have moderated. The negative
credit-to-GDP gap supports measures designed to improve credit delivery, without significant risk build-up, provided
banks maintain sound credit risk management practices and systems. Systemic risks within the sector have remained
broadly subdued due to the strong solvency and earnings positions of banks supported by adequate liquidity
conditions. There has been a continuous, gradual improvement in key asset quality indicators, suggesting that credit
risk management has improved, though NPLs remain elevated. The banking sector appears well-positioned to contain
risks from potential adverse macroeconomic shocks in the outlook.

PUBLIC
7. Price Developments

7.0 Highlights
Headline inflation continued its downward trend, reflecting broad-based declines across both food and non-food
components of the consumer price index (CPI). This disinflation has been primarily driven by tight monetary policy
stance, ongoing fiscal consolidation measures, and the strong recovery of the cedi. In the outlook, inflation is projected
to converge into the medium-term target band of 8 percent ± 2.

7.1 Domestic Price Developments
Headline inflation continued its downward trend, declining to 3.8 percent in January 2026 from 5.4 percent in December
2025, and further declining to 3.3 percent in February 2026. This outturn marked a consecutive fourteen-month decline
in headline inflation.
On the back of a bumper harvest, food inflation declined to 3.9 percent in January 2026 from 4.9 percent in December
2025. Non-food inflation also moderated on the back of a tight policy stance to 3.9 percent in January 2026 from 5.8
percent in December 2025. In February, however, it edged up slightly to 4.0 percent on the back of increasing utility
costs. Despite the uptick, the Bank’s core inflation measure, which excludes energy and utility items, continued to
decline. Core inflation declined from 4.6 percent in December 2025 to 3.4 percent in January 2026 and 3.1 percent in
February 2026.

Figure 7.1: Year-on-Year Inflation

Source: GSS and Bank of Ghana Staff Calculations

On a month-on month basis, headline inflation declined from 0.9 percent in December 2025 to 0.2 percent in January
2026 but picked up in February 2026 to 0.8 percent. Monthly food inflation followed a downward trend, declining from
4.9 percent in December 2025 to 3.9 percent in January 2026 and further to 2.4 percent in February 2026. Monthly nonfood inflation, however, fell from 5.8 percent in December 2025 to 3.9 percent in January 2026, but increased slightly
to 4.0 percent in February 2026.

Feb-23
Apr-23
Jun-23
Aug-23
Oct-23
Dec-23
Feb-24
Apr-24
Jun-24
Aug-24
Oct-24
Dec-24
Feb-25
Apr-25
Jun-25
Aug-25
Oct-25
Dec-25
Feb-26
Year on Year Inflation
Headline
Lower Band
Upper Band

PUBLIC
Figure 7.2: Headline vs Core Inflation (%)

Source: GSS and Bank of Ghana Staff Calculations

Figure 7.3: Month-on-Month Inflation (%)

Source: Ghana Statistical Service

Feb-24
Mar-24
Apr-24
May-24
Jun-24
Jul-24
Aug-24
Sep-24
Oct-24
Nov-24
Dec-24
Jan-25
Feb-25
Mar-25
Apr-25
May-25
Jun-25
Jul-25
Aug-25
Sep-25
Oct-25
Nov-25
Dec-25
Jan-26
Feb-26
Headline vs Core Inflation (%)
Core 1 (Excluding Fuel, and Utilities)
Headline Inflation
-3
-2
-1

Feb-

Mar-

Apr-

May
-24
Jun-

Jul-

Aug-

Sep-

Oct-

Nov-

Dec
-24
Jan-

Feb-

Mar-

Apr-

May
-25
Jun-

Jul-

Aug-

Sep-

Oct-

Nov-

Dec
-25
Jan-

Feb-

Headline

Food

Non-food

Monthly Inflation

PUBLIC
Table 7.1: CPI Components


7.2 Inflation Risk Assessment and Outlook
In the outlook, headline inflation is expected to return to the medium-term target of 8 ± 2 percent, barring any shocks.
Upside risks from geopolitical tensions in the Middle East, however, remain significant, highlighting the importance of
maintaining an appropriate monetary stance going forward.


Decision on the Monetary Policy Rate
The Committee observed a marked improvement in macroeconomic conditions, with inflation expectations broadly
anchored, strengthened external buffers, and renewed confidence in the economy. They further noted that headline
inflation is expected to trend below the midpoint of the medium-term target of 8 ± 2 percent in the first quarter of 2026.
Looking ahead, the Committee noted that upward adjustments in utility tariffs and geopolitical tensions could exert some
upside risks to the inflation outlook. Notwithstanding this, the maintenance of an appropriate monetary policy stance,
strong sterilisation efforts, ongoing fiscal consolidation, and adequate reserve buffers was expected to steer inflation
back to the medium-term target of 8 ± 2.

Given these considerations, the Committee, in a majority decision, voted to lower the Monetary Policy Rate by 150 basis
points to 14 percent. Looking ahead, the Committee noted that they will continue to assess incoming data and take
appropriate policy decisions, as needed, to reinforce the disinflation trend.


Weghts
Dec
Dec
Jan
Feb
Mar
Jun
Sep
Oct
Nov
Dec
Jan
Feb
(%)
Overall

Food and Beverages

Non-food

Alcoholic Beverages, Tobacco & Narcotics

Clothing and footwear

Housing and Utilities

Furnishings, Household Equipment

Health

Transport

Information and Communication

Recreation & Culture

Education

Restaurants and accommodation services

Insurance and Financial services

Personal care, social protection & Miscellaneous services


CPI Components (%)

Source: Ghana Statistical Service

PUBLIC
APPENDIX

Table A.1: Fiscal Indicators


Table A.2: Key Monetary and Financial Indicators

Source: Bank of Ghana


In GH¢ unless otherwise stated

Prov
Budget
Prov
Prog
Outturn
Revised
Outturn
Q1-Q4
Total Revenue & Grants

(per cent of GDP)

Total Expenditure (Commitment)

(percent of GDP)

Overall Balance (Commitment)

(percent of GDP)

Primary Balance (Commitment)

(percent of GDP)

Arrears clearance (net change)

o/w Clearance of Arrears/BTAs

o/w Clearance Energy Sector Related Arrears

o/w Payables build-up

Overall Balance (cash)

(percent of GDP)

Primary Balance (Cash)

(percent of GDP)

Nominal GDP

Deviation Y-O-Y Growth

PUBLIC
Table A.3: Sources of Growth in Total Liquidity (GH¢ Millions, unless otherwise stated)


Source: Bank of Ghana Staff Calculations


Table A.4: Sources of Growth in Reserve Money (GH¢ Millions, unless otherwise stated)


Source: Bank of Ghana Staff Calculations

PUBLIC

Table A.5: DMB’s Credit Allocations (GH¢ Millions, unless otherwise stated)

Source: Bank of Ghana Staff Calculations

Table A.6: Performance of the GSE-CI by Sectors

Source: Bank of Ghana Staff Calculations


Table A.7: Market Capitalisation by Sectors

Source: Bank of Ghana Staff Calculations


MONTH
F&B
MAN
FINANCE
DISTR
MINING
IT
AGRIC
OIL
ETFund
EDUC
AD.& PROD.
GSE-CI
Feb-25

Dec-25

Jan-26

Feb-26

Mon. Chg
ABS

Ytd
ABS

Yoy
ABS

SECTOR
MONTH
F&B
MAN
FINANCE
DISTR
MINING
IT
AGRIC
OIL
ETFund
EDUC
AD.& PROD.
Market Cap
Feb-25
2,214.20

1,289.3

36,874.04

2,312.5

27,048.0

38,518.3

915.6

17,393.9


Dec-25
3,076.48

1,307.4

55,180.93

5,678.0

27,098.9

55,607.6

1,942.5

17,582.3


Jan-26
3,096.86

1,307.4

57,948.81

5,686.5

30,876.6

55,608.9

2,178.5

17,582.3


Feb-26
6,170.68

1,755.6

94,893.76

6,206.0

31,147.3

73,618.3

2,526.5

17,582.3


Mon. Chg
ABS

Ytd
ABS

Yoy
ABS

SECTOR

PUBLIC
Table A.8: Asset and Liability Structure of the Banking Sector

Source: Bank of Ghana Staff Calculations


Table A.9: Credit Growth

Source: Bank of Ghana Staff Calculations


Table A.10: Contingent Liabilities

Source: Bank of Ghana Staff Calculations


Feb-23
Feb-24
Feb-25
Dec-25
Feb-26
Components of Assets (% of Total)
Cash and Due from Banks

Investments

Net Advances

Others

Components of Liabilities and Shareholders' Funds (% of Total)
Total Deposits
75.4

78.2

74.6

72.8

72.7

Total Borrowings
7.6

5.0

7.4

8.5

8.5

Shareholders' Funds
9.4

10.5

11.0

13.1

13.1

Other Liabilities
7.4

6.1

6.9

5.4

5.5

Feb-24
Feb-25
Dec-25
Feb-26
Feb-25
Feb-26
Public Sector

Private Sector

- Private Enterprises

o/w Foreign

Indigeneous

- Households

Gross Loans

Economic Sector
Gh¢million
y/y growth (%)
Feb-24
Feb-25
Dec-25
Feb-26
Contingent Liabilities (GH¢million)
23,348.18

23,414.18

16,144.33

20,361.17

Growth (y-o-y)

% of Total Liabilities


PUBLIC
Table A.11: Distribution of Loans and NPLs by Economic Sector (%)

Source: Bank of Ghana Staff Calculations


Table A.12: Liquidity Ratios

Source: Bank of Ghana Staff Calculations


Table A.13: Profitability Indicators (%)

Source: Bank of Ghana Staff Calculations


a. Public Sector

i. Government

ii. Public Institutions

iii. Public Enterprises

b. Private Sector

i. Private Enterprises

o/w Foreign

Indigeneous

ii. Households

iii. Others

Share in
NPLs
Share in Total
Credit
Share in
NPLs
Feb-24
Feb-25
Dec-25
Feb-26
Share in Total
Credit
Share in
NPLs
Share in Total
Credit
Share in
NPLs
Share in
Total Credit
Feb-24
Feb-25
Dec-25
Feb-26
Liquid Assets (Core) - (GH¢'million)
86,707.40

149,495.17

138,039.57

140,799.24

Liquid Assets (Broad) -(GH¢'million)
199,176.39

271,482.77

312,669.47

332,763.90

Liquid Assets to total deposits (Core)-%
38.6

52.1

42.4

41.6

Liquid Assets to total deposits (Broad)- %
88.8

94.6

96.1

98.3

Liquid assets to total assets (Core)- %
30.2

38.9

30.9

30.3

Liquid assets to total assets (Broad)- %
69.4

70.6

70.0

71.5

Feb-24
Feb-25
Dec-25
Feb-26
Gross Yield

Interest Payable

Spread

Asset Utilitisation

Interest Margin to Total Assets

Interest Margin to Gross income

Profitability Ratio

Return On Equity (%) after tax

Return On Assets (%) before tax


PUBLIC
Table A.14: DMBs’ Income Statement

Source: Bank of Ghana Staff Calculations


Table A.15: Developments in Offshore Balances

Source: Bank of Ghana Staff Calculations
Feb-24
Feb-25
Dec-25
Feb-26
Feb-25
Dec-25
Feb-26
Interest Income
5,896.8

6,690.6

44,575.0

6,903.9

13.5

15.8
3.2
Interest Expenses
(1,924.3)

(2,279.3)

(14,942.9)

(2,220.4)

18.5

14.7
(2.6)
Net Interest Income
3,972.6

4,411.3

29,632.1

4,683.5

11.0

16.4
6.2
Fees and Commissions (Net)
785.3

1,066.7

6,206.0

1,060.7

35.8

9.5
(0.6)
Other Income
732.1

772.6

7,602.2

1,430.5

5.5

30.3
85.1
Operating Income
5,489.9

6,250.6

43,440.3

7,174.7

13.9

17.5
14.8
Operating Expenses
(2,421.7)

(3,019.8)

(18,908.4)

(3,203.0)

24.7

14.0
6.1
Staff Cost (deduct)
(1,206.0)

(1,553.0)

(9,991.5)

(1,777.5)

28.8

21.5
14.5
Other operating Expenses
(1,215.7)

(1,466.9)

(8,916.9)

(1,425.5)

20.7

6.6
(2.8)
Net Operating Income
3,068.3

3,230.7

24,531.9

3,971.7

5.3

20.4
22.9
Total Provision (Loan losses, Depreciation &
(619.0)

(275.2)

(1,641.4)

(394.8)

(55.5)

(57.1)
43.4
Income Before Tax
2,449.3

2,955.5

22,890.5

3,577.0

20.7

38.4
21.0
Tax
(836.2)

(969.1)

(7,914.9)

(1,111.7)

15.9

29.6
14.7
Net Income
1,613.1

1,986.4

14,975.6

2,465.3

23.1

43.5
24.1
Gross Income
7,414.2

8,529.9

58,383.2

9,395.1

15.0

16.8
10.1
(GH ¢'million)
Y-o-y Growth (%)
Feb-24
Feb-25
Dec-25
Feb-26
Offshore balances as % to Networth

Annual Growth in Offshore balances (%)

Annual Growth in Nostro Balances (%)

Annual Growth in Placement (%)
120.3
113.6
-21.0
-28.1