In a development that underscores growing investor confidence in Ghana’s financial sector, Fitch Ratings has affirmed UBA Ghana’s Long-Term Issuer Default Rating (IDR) at ‘B-’ with a stable outlook, pointing to the bank’s strong financial health, improving loan quality, and resilient capital buffers.
This affirmation comes at a critical time for Ghana’s recovering economy, which is still reeling from the impact of recent debt restructuring and persistent inflationary pressures.
For everyday Ghanaians, it signals greater stability in banking services, increased access to credit, and renewed trust in local financial institutions.
Fitch’s move follows its recent upgrade of Ghana’s sovereign credit rating in June, thanks to the country’s successful restructuring of most Eurobond debt. That broader macro improvement has rippled through the financial system, helping strong institutions like UBA Ghana shine even brighter.
Why This Matters to Ghanaians
The Fitch report is more than just a technical credit update, it offers a glimpse into the future of access to affordable loans, SME financing, and stable customer deposits. UBA Ghana’s high capital adequacy, with a 14.1% CET1 ratio, means the bank is well-capitalized to weather shocks and more likely to offer consistent services even in turbulent times.
UBA Ghana’s strong profitability, averaging 4.5% in operating returns on risk-weighted assets, reflects effective risk management and the bank’s ability to grow sustainably, good news for customers and small businesses relying on stable banking partners.
Loan Quality and Access to Credit
Fitch highlighted a major improvement in loan quality: impaired loans dropped from 24.7% in 2023 to 12.5% in 2024, indicating better recovery and fewer defaults. This also opens doors for more SMEs and quality borrowers to access financing, a much-needed catalyst for Ghana’s real sector and local entrepreneurship.
Though only 9% of UBA Ghana’s total assets are tied up in loans, the bank has outlined plans to expand responsible lending to high-quality corporate and SME clients. For businesses across Ghana’s 261 districts and into West Africa, this could boost job creation and productivity.
Regional Significance and Group Support
UBA Ghana is a key player in the broader UBA Group, which spans 20 African countries. The Ghana subsidiary benefits from the strength of its parent company, UBA Plc (Nigeria), whose own rating was upgraded following Nigeria’s sovereign uplift in April.
This interconnectedness means stronger performance in Ghana feeds into a more resilient West African banking ecosystem, essential for regional trade under the African Continental Free Trade Area (AfCFTA).
What UBA Ghana Is Saying
Managing Director/CEO of UBA Ghana, Uzoechina Molokwu, welcomed the affirmation, saying: “We are encouraged by this affirmation from Fitch, which reinforces the confidence in our business fundamentals, prudent risk management, and the continued support from our parent group. We remain committed to delivering exceptional value to our customers, shareholders, and stakeholders across Ghana.”
Looking Ahead
As Ghana works toward single-digit inflation and broader macroeconomic reforms under the IMF programme, strong banks like UBA Ghana offer a beacon of stability. For the average depositor, this means continued safety for savings; for businesses, it signals improved access to capital; and for the wider economy, it reflects a strengthening financial backbone supporting recovery and transformation.
With a robust foundation and renewed global confidence, UBA Ghana looks set to play an even bigger role in Ghana’s economic revival and West Africa’s financial integration.
