S&L sector records growth, disburses 12m loans in 9 months

By Ernest Bako WUBONTO

The savings and loans (S&L) sector in Ghana has reported significant growth, surpassing last year’s loan disbursement figures in just the first nine months of the current year while simultaneously strengthening its overall financial balance sheets.

Data from the Ghana Association of Savings and Loans Companies (GHASALC) reveal that between January and September 2025, member institutions advanced over 12 million loans valued at GH?13billion. This figure is particularly striking as it equals the total number of loans disbursed throughout the entire 2024.

CEO-GHASALC Tweneboah Koduah Boakye, speaking at an industry briefing in Accra, highlighted this accelerated pace as a sign of the subsector’s robust health and its critical role in supporting the economy.

“The fact that we have reached 12 million loans in just nine months is a clear indicator of the growing trust and strategic position we hold. This means 30 percent of the general population has benefitted from our services, underscoring our commitment to supporting national development,” he said.

Balance Sheet Strengthens to GH¢12bn

Parallel to the surge in lending, the industry’s collective balance sheet has also seen a substantial boost.

Mr. Boakye disclosed that as of September 2025, total assets of the S&L sector have grown to over GH¢13billion – already exceeding the GH¢10.9billion recorded at the close of 2024.

He attributed this financial strengthening to several key initiatives, including an improved relationship with regulators and a concerted effort to strengthen corporate governance practices across member institutions.

“Our profitability has improved significantly,” Boakye added, noting that while interest rates have not dropped drastically, S&Ls continue to offer more accessible loan options compared to commercial banks.

The sector, which consists of about 26 institutions and serves approximately 5.5 million clients – equivalent to 16 percent of the Ghanaian population, is strategically positioned to support small- and medium-scale enterprises (SMEs) and the private sector.

The GHASALC CEO reiterated that S&L institutions are strategically positioned to be the primary supporters of small- and medium-scale enterprises (SMEs) and the private sector.

Managing Director-Bayport Savings and Loans Akwasi Aboagye, on his part, confirmed the sector’s strengthened capacity, noting that Bayport remains committed in offering affordable loans to support industry within its remit.

“Our balance sheet puts us in a position to primarily support small businesses and individuals. The positive trend in interest rates on loans, which has reduced by five percent this year with hopes for a further decline, will influence even more loans,” he said.

In terms of requirements for loans and complexity in accessing them for the ordinary business person, he indicated that BoG has a regulation in place for S&L institutions to follow. It is therefore important for individuals and businesses seeking a loan to first understand what kind of loan fits best for their project.

“Some loan amounts require collateral while others don’t, therefore it’s important for the individual to also understand the terms and conditions,” he added.

Tackling Non-Performing Loans (NPLs)

Despite impressive growth, the Non-Performing Loans (NPL) ratio currently stands at about 14 percent – which is an improvement from previous periods but still high and the industry is actively working to reduce it to a single digit.

Mr. Boakye reiterated that efforts are now underway across the sector to achieve a single-digit NPL ratio by end of next year.

He used the opportunity to appeal for the public to pay back accessed loans and ensure the industry’s continued growth and stability.

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