ACCRA — Ghana's banks are still making big money, just not as fast as before. The country's commercial banks recorded a profit after tax of GH¢9.2 billion in the first eight months of 2026, according to the Bank of Ghana's October 2026 Banking Sector Development Report.

That is a strong figure, but it is slightly below the GH¢9.7 billion banks earned over the same period in 2025. Profit before tax contracted by 5.7% year on year, a sharp turnaround from the 42% growth recorded a year earlier.

At the same time, the cedi has come under renewed pressure. Bank of Ghana data show the currency had lost 7.11% of its value against the US dollar by the end of August 2026, and the slide has continued since.

Why bank profits are cooling

The main reason is that interest rates have come down. With inflation now around 5%, borrowing costs have eased, and banks earn less on the difference between what they charge borrowers and what they pay depositors. Key indicators from the Bank of Ghana show the squeeze, comparing August 2026 with August 2025:

  • Return on equity: down to 22.2% from 32.2%
  • Interest spread: narrowed to 5.9% from 7.9%
  • Asset utilisation (gross income to total assets): down to 7.3% from 9.2%
  • Profitability ratio: almost flat at 25.3%, from 25.4%

There was one bright spot. Income from fees and commissions grew by 17.9%, faster than the 13.1% a year earlier, as banks earned more from services such as transfers, cards and digital banking.

Banks also set aside more money for possible bad loans this year. By June, provisions for bad debts and impairments had risen by 38.2%, which also weighed on profits.

Lending is picking up

The good news for businesses is that banks are lending more. Bank credit grew by 34% to GH¢128.3 billion as of August 2026, and the average lending rate stood at 15.9%.

The Bank of Ghana says the economy is still in a low-risk credit environment. Credit is growing, but more slowly than the economy as a whole, which the central bank says leaves room for further, measured lending to support businesses.

The cedi: a closer look at 7.11%

The 7.11% figure needs some explaining. It is a year-to-date figure: the cedi's total loss against the dollar from January to the end of August 2026 on the interbank market, not its fall in August alone.

That is a sharp reversal from 2025, when the cedi gained more than 20% against the dollar over the same period.

August was actually one of the cedi's better months. The Bank of Ghana said pressure on the currency eased that month thanks to lower demand for dollars and its own support to the market.

But the relief did not last. By September, the cedi's year-to-date loss had widened to about 9.5%, with the dollar trading at about GH¢11.55, compared with GH¢10.45 at the end of 2025. The World Bank has pointed to dollar demand from the energy sector and dividend payments by some companies as sources of pressure.

What it means for you

If you borrow: Lower interest rates are squeezing bank profits, but they are good news for borrowers. Loans are becoming more affordable, and banks are lending more to businesses and households.

If you save: The flip side of lower rates is lower returns on savings and fixed deposits. With inflation at around 5%, savers should compare rates carefully across banks and other investments.

If you pay in dollars: A weaker cedi makes imported goods, school fees abroad, foreign travel and dollar-priced items more expensive. Businesses that import raw materials may pass higher costs on to customers.

For the economy: Profitable, well-capitalised banks are better able to lend and absorb shocks. The Bank of Ghana's report suggests the sector remains healthy, even as the era of very high bank profits fades.

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