Agriculture Development Bank appears to have benefited immensely from the injection of capital from the Ghana Amalgamated Trust as its year-on-year profit doubled, hitting GHS60 million, according to its unaudited Third Quarter financial results.

Its earnings during the same period last year was GHS30 million.

According to the financial statement ending September 2020, the bank’s interest income grew by 25%, because of largely return from investments in risk free instruments.

However, its fees and commissions dropped due to a large expense on the profitability account.

Joy Business understands that the bank did not halt disbursement of loans during the period of the covid-19 pandemic.

The growth in profit culminated in an earnings per share of 17 pesewas compared with 11 pesewas the previous year.

But this could have been better if its high cost-to-income had gone down.

Nonetheless, ADB has seen remarkable turnaround under the leadership of Dr. John Kofi Mensah.

In terms of the balance sheet, ADB’s customer deposits increased from GHS3.1 billion in September 2019 to GHS3.7 billion at the end of September 2020, whilst loans and advances went up by almost GHS500 million to GHS1.8 billion in the nine months of 2020.

Importantly, the balance sheet size went up from GHS7.5 billion a year ago to GHS9.3 billion in the third quarter of 2020.

The stated capital of the bank has gone up to GHS698 million in September 2020, as against GHS571 million the previous year.

For the stability of the institution, ADB recorded a liquidity ratio of 113% but Non-Performing Loans was still high though had seen some substantial drop.

Overall, the bank is liquid and stronger than a year ago.

Financial Soundness Indicators

	September 2020	September 2019
Capital Adequacy  Ratio	12.38%	15.87%
Non-Performing Loans	33.84%	42.32%
Liquid ratio	113.44%	123.06%