Ghanaâ€™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 Â¢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 Â¢45 million and Â¢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 Â¢11 billion to Â¢11.34 billion at the end of June this year. Total assets stood at Â¢6.12 billion, whilst total liabilities was Â¢5.2 billion in the first six months of 2021.
Shareholdersâ€™ funds also stood at Â¢906.3 million in June 2021, higher than the Â¢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 2021||March 2021|
|Capital Adequacy Ratio 13.31%||13.92%|
|Non-Performing Loans 31.80%||32.94%|
|Liquid Ratio 112%||144.98%|