Agricultural Development Bank (ADB) PLC recorded a profit after tax of GH¢367.29 million for the year ended December 31, 2025, a sharp turnaround from the GH¢225.09 million loss reported in the previous year, according to the bank’s summary financial statements released on March 31, 2026.
The financial statements, signed by Managing Director Edward Ato Sarpong and Independent Non-Executive Director Courage Akanwunge Asabagna, showed that the bank’s recapitalisation efforts and improved loan recoveries drove the strong performance.
Profit before tax for the year stood at GH¢580.82 million, compared to a loss before tax of GH¢225.09 million in 2024.
Capital position strengthened
The bank’s capital adequacy ratio improved significantly to 27.17 per cent from negative 3.15 per cent in the previous year, following a recapitalisation exercise undertaken in 2024. The common equity Tier 1 ratio rose to 25.17 per cent from negative 6.15 per cent.
Total assets increased to GH¢17.89 billion from GH¢14.60 billion, while total equity surged to GH¢2.48 billion from GH¢1.28 billion.
The bank received a deposit of GH¢50 million for shares yet to be registered, which contributed to the strengthening of its capital position. Recoveries of GH¢381.4 million from non-performing loans also supported the turnaround.
Interest income and revenue growth
Interest income calculated using the effective interest method increased to GH¢2.09 billion from GH¢1.57 billion. Net interest income rose to GH¢1.37 billion from GH¢723.18 million.
Fees and commission income increased to GH¢284.48 million from GH¢238.98 million, while net trading income grew to GH¢106.47 million from GH¢70.74 million.
Total operating income increased to GH¢1.75 billion from GH¢1.00 billion in the prior year.
Impairment and operating expenses
Impairment loss on loans and advances decreased to GH¢231.78 million from GH¢302.92 million. Personnel expenses amounted to GH¢514.08 million, while other operating expenses totalled GH¢324.45 million.
Depreciation and amortisation charges stood at GH¢71.85 million.
Deposits and loans
Deposits from customers increased to GH¢13.22 billion from GH¢12.05 billion. Loans and advances to customers amounted to GH¢2.01 billion, down from GH¢2.57 billion in the prior year.
Cash and bank equivalents rose to GH¢9.90 billion from GH¢7.18 billion. Investment securities increased to GH¢5.03 billion from GH¢3.80 billion.
Contingent liabilities
Total contingent liabilities and commitments stood at GH¢170.19 million, comprising guarantees and indemnities of GH¢14.77 million, letters of credit of GH¢96.92 million, and undrawn commitments of GH¢58.50 million.
Regulatory sanctions
The bank disclosed regulatory sanctions totalling GH¢120,000 for the year, with one breach recorded. No statutory liquidity breaches were reported, and no sanctions were incurred in relation to liquidity requirements.
Corporate Social Responsibility
A total of GH¢2.95 million was spent on corporate social responsibility activities during the year, including sponsorship of the Best Farmer Award and donations to schools. This compares to GH¢7.78 million spent in the prior year.
Source:
www.graphic.com.gh