Ghana’s indigenous bank, Agricultural Development Bank, maintained its good performance in the third quarter of this year, with a 49.7 percent increase in profit to $90 million, according to its Unaudited 3rd Quarter Financial Statement.
The bank’s interest revenue and fees and commissions increased significantly, while its expenditures, particularly interest expense, were managed sensibly. Notably, the bank has profited greatly from capital injections from the Ghana Amalgamated Trust (GAT).
Shareholders will get 34.41 pesewas per share owned as a result of the increase in income. This is a decrease from 17.33 pesewas per share a year ago.
Despite a minor decrease to 30.35 percent in September 2021, Non-Performing Loans remained a big problem. It was 33.84 percent a year ago.
The bank had to write down 21.5 million on its books at the end of September 2021, up from 16.9 million the previous year.
The balance sheet size was anticipated to be around 11.4 billion, somewhat higher than the 11.34 billion recorded in the first half of the year.
In the first nine months of 2021, total assets were 6.178 billion, while total liabilities were 5.238 billion.
Shareholder funds were likewise 940.6 million in September 2021, up from 906.3 million in June 2021.
In terms of the bank’s stability, the liquidity ratio fell from 112 percent in June 2021 to 97.54 percent in September 2021. However, the capital adequacy ratio remained low in September, at 12.99 percent, lower than the 13.31 percent recorded in June 2021.
Financial Soundness Indicators
| September 2021 | September 2020 | |
| Capital Adequacy Ratio 12.99% | 12.38% | |
| Non-Performing Loans 30.35% | 33.84% | |
| Liquid Ratio 97.54% | 113.44% |