Agricultural Development Bank registered a profit after tax of GH¢65 million, approximately 341% year-on-year growth for last year.

This was as a result of significant growth in its interest income, whilst keeping interest expense down.

According to its 2020 Financial Statement, the indigenous bank grew all its income lines despite the impact of covid-19 on businesses. Interest income went up by 28% year-on-year to GH¢628 million in December 2020.

It was one of the few banks that was involved in loans and advancement during 2020, amid coronavirus. This was demonstrated in significant growth in interest income as well as fees and commissions despite a jump in its bad debt from GH¢15 million to GH¢23 million.

Shareholders of the bank will be smiling following the remarkable growth in profit as earnings per share went up to 24.99 pesewas per share, from 5.66 pesewas in 2019.

The bank importantly has seen a swift turnaround under the leadership of Dr. John Kofi Mensah.

It balance sheet size hit GH¢10.5 billion at the end of December last year, as against GH¢8.3 billion in 2019. The stated capital of the bank is still pegged at GH698 million, far higher than the minimum capital of GH¢400 million.

For the financial soundness indicators, ADB recorded a liquidity ratio of 117%, but Non-Performing Loans was still high at 34% though had seen some 6.0 percentage points drop.

The bank is now very stable and stronger.

Financial Soundness Indicators

	December 2020	December 2019
Capital Adequacy  Ratio	14.87%	16.45%
Non-Performing Loans	34.40%	41.72%
Liquid ratio	117.76%	144.98%