United Bank for Africa (UBA) Ghana has significantly improved its asset quality, emerging as the industry leader in reducing Non-Performing Loans (NPLs). This achievement, highlighted in the bank’s latest performance metrics, demonstrates a robust commitment to risk management and governance.
Context of Asset Quality Improvement
The banking sector in Ghana has faced challenges with Non-Performing Loans in recent years. In 2021, UBA Ghana reported a substantial NPL ratio of 29.40%. This situation reflects broader economic pressures and the inherent risks associated with lending.
The Bank of Ghana has set a directive for all commercial banks to maintain NPL ratios below 10% by June 2026. This regulatory push underscores the importance of sound lending practices and effective recovery strategies across the financial industry.
UBA Ghana’s NPL Reduction Strategy
UBA Ghana has witnessed a dramatic decrease in its NPL ratio, falling from 29.40% in 2021 to an impressive 2.11% by 2025. This represents a significant turnaround in asset quality over a four-year period.
Accompanying this ratio improvement, the absolute value of NPLs has also drastically reduced. From GH¢334 million in 2021, the figure dropped to GH¢28 million in 2025, indicating successful de-risking of the bank’s loan portfolio.
This success is attributed to a comprehensive and enhanced NPL management framework. The bank strengthened its existing structures, enforced stricter credit discipline, and implemented more effective recovery mechanisms.
Expert Insights on Risk Management
Kenneth Amponsah, Chief Risk Officer at UBA Ghana, explained the systematic approach behind this achievement. “The improvement in our NPL ratio did not happen by chance,” Amponsah stated. “It is the result of consistent quality at entry discipline, better lending standards, and strong credit monitoring and recovery systems.”
He emphasized that risk management is integrated throughout the entire lending process at UBA Ghana. This includes strategic portfolio planning, efficient loan approval, proper documentation, robust collateral control, real-time monitoring, and accelerated loan recovery.
Strong Board oversight and clear accountability across all levels of the organization have been crucial in supporting these initiatives. This governance structure ensures that risk policies are effectively implemented and monitored.
Recovery Efforts Drive Success
A key component of UBA Ghana’s strategy has been its intensified recovery efforts. These initiatives have yielded substantial results, with recoveries escalating over the years. In 2025 alone, the bank recovered GH¢168 million in previously non-performing loans.
Bernard Gyebi, Managing Director and Chief Executive Officer of UBA Ghana, lauded the team’s dedication. “This achievement reflects the hard work of our entire team, from Relationship Managers and Risk teams to Executive Management and the Board,” Gyebi commented. “It shows a strong culture of discipline, accountability, and effective execution.”
Gyebi further highlighted the bank’s intentional focus on building a resilient institution. “At UBA, we are intentional about building a strong and resilient bank that balances growth with sound risk management,” he added.
Implications for the Banking Sector and Stakeholders
Industry analysts view UBA Ghana’s performance as a positive signal for the broader Ghanaian banking sector. It not only showcases the bank’s individual leadership in risk management but also reinforces the sector’s capacity for improvement and adherence to regulatory standards.
For stakeholders, UBA Ghana’s enhanced asset quality signifies a more stable and secure financial institution. This improved financial health positions the bank to better support businesses and contribute to economic growth.
Looking ahead, UBA Ghana aims to sustain its performance while continuing to foster economic development. The strengthened risk management system is expected to ensure continued compliance with regulatory standards and deliver long-term value for all stakeholders in Ghana’s dynamic financial landscape.
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