Managing Director of ADB, Dr John Kofi Mensah Agricultural Development Bank (ADB) has made a profit after tax of GH¢65.4 million in 2020 compared to GH¢14.9 million in 2019, despite the adverse impact of the global pandemic.
This represented over 400% growth in performance in 2020, occasioning a Return on Equity and Return on Assets of 7.69% and 1.14% as against 1.87% and 0.32% in that order respectively.
This came to light when the bank held its 34th annual general meeting (AGM) yesterday.
The meeting also gave shareholders the opportunity to consider, appoint and re-elect new directors while approving the remuneration of directors at the bank.
Addressing the shareholders, the Board Chairman of ADB, Mr Alex Bernasko, indicated that the size of the bank’s balance sheet experienced significant growth over the year from GH¢4.6 billion in 2019 to GH¢5.7 billion in 2020.
"We saw 24% bolster in part by our improved holdings in investment securities in line with our strategic objectives, just as we saw an expansion of 30% in net loan assets from GH¢1.5 billion in 2019 to GH¢1.9 billion in 2019," he stressed.
Mr Bernasko also added that the non-performing loan (NPL) portfolio of the bank witnessed a significant reduction from 41% in 2019 to
34% in 2020.
"Our target is to bring the NPL ratio within industry brackets by 2023," he noted.
Growth in deposit
The board chair noted that deposits for the year under review grew by 26% from GH¢3.4 billion in 2019 to GH¢4.2 billion in 2020.
He explained that an intricate analysis of the financial performance of the bank showed that it improved in every sphere, adding that interest income saw a growth of 28% from GH¢419.2 million in 2019 to GH¢628.9 million in 2020 whilst gross non-interest revenue also increased by 12% to GH¢158.7 million in 2020 compared to GH¢141.8 million in 2019. Ensuring corporate governance The board chairman indicated that in efforts to keep directors abreast with new trends in the banking industry landscape, corporate governance certification training was organised for directors.The ADB Board, thus, reviewed and adopted a revised three-year strategic plan (2021-2023) for the bank.This allowed management and the board to rethink the reason for the bank’s existence and to redefine its mission and vision statements, strategic objectives and core values to bring them more in alignment with the bank’s purpose.“The reviewed strategic plan, which spans the period 2021 to 2023, provides, among other things, the guidance […]