19th July 2024

Dr John Kofi Mensah, ADB MD

Agricultural Development Bank (ADB) says it recorded a 400 per cent growth in performance last year, having made a profit after tax of GHC65.4 million, compared to GHC14.9 million in 2019, despite the global pandemic.

The increment also occasioned a Return on Equity and Return on Assets of 7.69 per cent and 1.14 per cent, as against 1.87 per cent and 0.32 per cent respectively.

At ADB’s 34th annual general meeting (AGM) over the weekend, the Board Chairman of ADB, Alex Bernasko, indicated that the size of the bank’s balance sheet experienced significant growth over the year from GHC4.6 billion in 2019 to GHC5.7 billion in 2020.

“We saw 24 per cent bolster in part by our improved holdings in investment securities in line with our strategic objectives, just as we saw an expansion of 30 percent in net loan assets from GHC1.5 billion in 2019 to GHC1.9 billion in 2019,” he said.

He further said that the non-performing loan (NPL) portfolio of the bank witnessed a significant reduction from 41 per cent in 2019 to 34 per cent in 2020.

“Our target is to bring the NPL ratio within industry brackets by 2023,” he noted.

Growth in deposit

The Board Chair said deposits for the year under review grew by 26 per cent, from GHC3.4 billion in 2019 to GHC4.2 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 per cent, from GHC419.2 million in 2019 to GHC628.9 million in 2020. Also gross non-interest revenue increased by 12 per cent to GHC158.7 million in 2020, compared to GHC141.8 million in 2019.

On corporate governance, he indicated that in efforts to keep directors abreast of new trends in the banking industry landscape, certification training was organised for directors.

Strategic plan

Mr Bernasko said the board 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 to influence the bank’s current operating model and the changes that will ensure its sustainability and growth,” Mr Bernasko noted.

According to the Board Chair, all the relevant indices of the bank presented a positive outlook, providing a basis for the bank climbing up three places from the 20th position to the 17th position in the ranking of banks in 2020.


Taking his turn, the Managing Director, Dr John Kofi Mensah, attributed the increase in profitability to the strong performance in treasury and credit operations funded by an aggressive deposit drive.

He indicated that the net interest income, which was GHC415.4 million for the year ended December 31, 2020, was an increase from GHC300.1 million in 2019. This, he said, represented a 38.42 per cent increase.

“This was mainly driven by booking quality loans and the effective monitoring of the loan book,” he noted.

Dr Mensah indicated that in line with its strategic objective to increase the agricultural loan portfolio to 50 per cent of the bank’s total loan portfolio, the bank in 2020 deepened its financial intermediation to players in the agricultural value chain.

Additionally, he noted, in the year under review, the bank also embarked on an out-grower financing scheme to support local raw material-based industries and processing factories; in the areas of cereals, vegetables and tree crops.

He spoke on the company’s commitment to continue to create employment in each of the regions where the scheme would be implemented.

“We will secure the capital of the bank and human capital to make sure we are prepared to absorb shocks such as another global pandemic,” he said.

Despite these achievements, Dr Mensah said the bank had more to do to embrace the opportunities to achieve a state of excellence in assisting their clients.


Shareholders at the general meeting confirmed the election of the Kwahuhene and President of the Kwahu Traditional Council, Daasebre Akuamoah Agyapong II, a Ghanaian politician, Alhaji Habib Iddrisu, and a professor of Plant Genetics, Prof Eric Yirenkyi Danquah, as the new directors of the bank’s Board.

Also, Mary Abla Kessie, Peter Quartey and Evron Rothschild Hughes were re-elected to the board.

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