Ghana’s indigenous bank, Agricultural Development Bank, continued its strong performance in 2021, as it registered a 78% year-on-year growth in profit to ¢116.9 million, its 2021 Unaudited Financial Statement has revealed.

The significant growth in net interest income and net fees and commission were the major drivers of the bottom-line, whilst cost was managed within acceptable limits.

Net interest income (¢482.64 million) and net fees and commission (¢95.24 million) grew by 16.1% and 26.2% respectively over the previous year (2020).

As a result of the growth in income, shareholders of the bank will be earning 44.69 pesewas per every share owned, as against 24.99 pesewas per share in 2020.

The bank’s bad debt reduced to ¢19.14 million in 2021, from ¢23.16 million a year ago.

With regard to the balance sheet, the balance sheet size stood at ¢11.9 billion in 2021, higher than ¢10.5 billion recorded in 2020.

Total assets stood at ¢6.46 billion, whilst total liabilities were ¢5.71 billion in December 2021.

Shareholders’ funds also stood at ¢967.5 million in 2021, compared with ¢850.6 million in 2020.

In terms of stability of the bank, the liquidity ratio declined to 89.78% in 2021, from 117.76% in 2020. However, Capital Adequacy Ratio dropped slightly to 13.33% in 2021, from 14.87% registered in 2020.

Financial Soundness Indicators

                                                                      December 2021                          December 2020

Capital Adequacy Ratio                                 13.33%                  14.87%

Non-Performing Loans                                  32.03%                  34.40%

Liquid Ratio                                                      89.78%                     117.76%