Agricultural Development Bank (ADB) recorded a remarkable 104 percent profit turnaround at its 38th Annual General Meeting, moving from a staggering GH₵828.8 million loss in 2023 to a net profit of GH₵35.06 million in 2024, though non-performing loans continue constraining the institution’s growth potential.
Board Chairman Kenneth Kwamina Thompson announced the dramatic financial recovery during the AGM held at the bank’s head office, highlighting significant balance sheet expansion and operational improvements that enabled the state-owned institution to achieve profitability after challenging previous years.
Total assets grew from GH₵9.31 billion in 2023 to GH₵14.60 billion in 2024, representing a 57 percent improvement that reflects enhanced capacity to support operations and investments across Ghana’s agricultural sector, according to the chairman’s address to shareholders.
Customer deposits increased substantially by 41 percent, rising from GH₵8.55 billion to GH₵12.05 billion, demonstrating improved confidence and stronger mobilization efforts despite broader economic challenges affecting Ghana’s banking sector during the period.
However, the loan book contracted by 12 percent, declining from GH₵2.94 billion in 2023 to GH₵2.57 billion in 2024, suggesting tighter credit conditions or cautious lending approaches in response to elevated credit risk concerns.
The bank’s non-performing loan (NPL) ratio deteriorated further, rising to 75.26 percent in 2024 from 70.25 percent in 2023, significantly exceeding the national banking industry average of 21.8 percent and representing ADB’s most critical operational challenge.
Managing Director Edward Ato Sarpong attributed the achievement to customer-centric approaches, digital transformation initiatives, and staff dedication while acknowledging that prudent loan portfolio management led to additional downgrades and related provisions.
Thompson emphasized that elevated NPLs continue constraining credit growth and profitability potential, noting that capital adequacy ratios remain below regulatory requirements despite improvements during the reporting period.
The bank has strengthened credit risk management frameworks and introduced robust recovery mechanisms to address NPL challenges while maintaining focus on agricultural sector development and financial inclusion objectives.
ADB launched a new strategic plan positioning the institution among Ghana’s top three banks by the plan’s conclusion, focusing on innovation, competitiveness, operational excellence, and distinctive financial solutions.
The strategy encompasses seven pillars including talent development, process optimization, business model enhancement, cultural transformation, new market exploration, leadership development, and technology advancement underpinned by values emphasizing responsibility, entrepreneurship, service excellence, integrity, and purpose-driven operations.
Sarpong pledged leadership commitment to measurable results through operational transformation, enhanced governance, and responsive business models while maintaining focus on national economic growth, particularly in agribusiness and community development.
The bank has deepened financial inclusion agendas through digital banking platforms, enhanced internal controls, and adopted Environmental, Social, and Governance (ESG) practices aligned with Bank of Ghana Sustainable Banking Principles.
ADB introduced the tagline “Beyond Banking” reflecting renewed purpose encompassing redefining banking services, empowering businesses, building futures, driving prosperity, and nurturing communities while creating sustainable value for stakeholders.
The remarkable turnaround occurs as Ghana’s banking sector faces persistent NPL challenges, with the industry average remaining elevated at 21.8 percent in December 2024, though ADB’s ratio significantly exceeds sector norms.
Shareholders approved all tabled resolutions during the meeting, demonstrating confidence in management’s strategic direction despite ongoing asset quality challenges that continue affecting the institution’s competitive positioning.
Finance Minister Dr. Cassiel Ato Forson recently inaugurated ADB’s new board of directors with calls to champion Ghana’s agricultural transformation, emphasizing agriculture’s critical role in sustainable national development.
The bank provides approximately 85 percent of institutional credit to Ghana’s agricultural market while offering services across retail, corporate, commercial, executive, and parastatal sectors through its universal banking model.
ADB’s 2024 performance demonstrates institutional resilience amid challenging operating conditions, though sustained profitability will depend on successful NPL reduction and continued operational efficiency improvements in subsequent reporting periods.
Source: newsghana.com.gh
