Ghana’s sole agriculture bank, the Agricultural Development Bank, has begun recording consistent growth in profit as earnings went up by about 80% year-on-year to ¢55.7 million in the first half of this year.

This resulted in earnings per share (EPS) inching up by about 138.6% to 21.29 pesewas. During the same period last year, EPS was 8.92 pesewas.

According to unaudited half-year results, the impressive growth was occasioned by significant growth in net fees and commission and net interest income as well as reduction in Non-Preforming Loans.

Importantly, net fees and commission and net interest income grew by 51.4% and 26.1% to ¢45 million and ¢239 million respectively in June 2021.

ADB had benefited from capital injection from the Ghana Amalgamated Trust to turn around its fortunes.

With regard to the balance sheet, the balance sheet size surpassed ¢11 billion to ¢11.34 billion at the end of June this year. Total assets stood at ¢6.12 billion, whilst total liabilities was ¢5.2 billion in the first six months of 2021.

Shareholders’ funds also stood at ¢906.3 million in June 2021, higher than the ¢824.8 million recorded during the same period last year.

In terms of the stability of the bank, ADB recorded a liquidity ratio of 112%, whilst Non-Performing Loans dropped from 32.94% in the first quarter of this year to 31.80% in June 2020. Capital Adequacy Ratio however was still low at 13.31%.

Financial Soundness Indicators               

June 2021		March 2021
Capital Adequacy Ratio                                 13.31%		13.92%
Non-Performing Loans                                   31.80%		32.94%
Liquid Ratio                                                    112%		144.98%