Business

ADB on path of consistent growth as earnings up 80% to ¢55.7m in half-year

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.https://e18696fd72085a7fcf4e3c07febf23ea.safeframe.googlesyndication.com/safeframe/1-0-38/html/container.html

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               https://e18696fd72085a7fcf4e3c07febf23ea.safeframe.googlesyndication.com/safeframe/1-0-38/html/container.html

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

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