Ghana’s indigenous bank, Agricultural Development Bank continued its strong performance as it registered a 49.7% growth in profit to ¢90 million in the third-quarter of this year, its Unaudited 3rd Quarter Financial Statement has indicated.

The bank recorded a strong growth in interest income and fees and commissions, whilst managing its costs including interest expense prudently. Importantly, the bank has benefited significantly from capital injection from the Ghana Amalgamated Trust (GAT).

As a result of the growth in income, shareholders will be earning 34.41 pesewas per every share owned. This is compared with 17.33 pesewas per share a year ago.

However, Non-Performing Loans was still a major concern despite declining slightly to 30.35% in September 2021. It stood at 33.84% a year ago.

The bank had to write off ¢21.5 million on its books at the end of September 2021, as against ¢16.9 million a year ago.

With regard to the balance sheet, the balance sheet size was estimated at about ¢11.4 billion, slightly higher than ¢11.34 billion recorded in the first-half of the year.

Total assets stood at ¢6.178 billion, whilst total liabilities was ¢5.238 billion in the first nine months of 2021.

Shareholders’ funds also stood at ¢940.6 million in September 2021, compared with ¢906.3 million in June 2021.

In terms of stability of the bank, the liquidity ratio declined from 112% in June 2021 to 97.54% in September 2021. Capital Adequacy Ratio however was still low at 12.99% in September, lower than the 13.31% registered in June 2021

Financial Soundness Indicators 

September  2021		September 2020
Capital Adequacy Ratio                                 12.99%		12.38%
Non-Performing Loans                                   30.35%		33.84%
Liquid Ratio                                                     97.54%		113.44%