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 the 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://abc605b9427e61a47061d7f71b4a4f02.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%.
Source: Myyoyonline.com