• Togo’s non-performing loans rose 7.5% in July 2025
• Year-on-year NPLs and ratio still show slight improvement
• Bank provisions fall, raising questions on risk management trends

Togo’s banking indicators paint a mixed picture after non-performing loans (NPLs) edged higher in July 2025, according to the BCEAO’s monthly bulletin released in August.

Following several months of gains, NPLs, loans on which repayments are overdue or uncertain, rose to 181.4 billion XOF ($321 million) in July from 168.8 billion XOF in June.

The 7.5% monthly increase, while notable, contrasts with a more favorable annual trend: gross NPLs fell 3% year-on-year, from 187 billion XOF in July 2024 to 181.4 billion XOF in July 2025.

The NPL ratio, the share of delinquent loans in total credit, followed a similar pattern, standing at 7.6% in July, down from 8.0% a year earlier, despite the rise from 6.7% in June.

Net NPLs, which represent bad loans after provisioning, increased 18% month-on-month to 78.3 billion XOF, up from 64.1 billion in June but only slightly above the 77 billion recorded in July 2024.

At the same time, banks’ provisions for potential loan losses declined from 62.0% to 56.8%, pointing to a modest easing in risk provisioning.

These movements likely reflect a cyclical adjustment rather than a lasting deterioration. Forthcoming data will show whether July’s uptick proves temporary or signals a deeper weakening in loan quality across the Togolese banking system.

Ayi Renaud Dossavi