As part of its two-year corporate strategy, the Agricultural Development Bank (ADB) says it has recovered over GH₵500 million in Non-Performing Loans (NPLs) within a span of just nine months.
This recovery marks a major achievement in the bank’s efforts to strengthen its balance sheet, enhance profitability, and improve asset quality as it seeks to reduce the burden of bad loans that have weighed on its financial performance.
The GH₵500 million recovery is the result of an aggressive debt recovery exercise launched as a key pillar of ADB’s two-year strategic plan. The exercise focused on collecting overdue payments from individuals and businesses that had defaulted on their loans, which had previously contributed to the bank’s high NPL ratio.
The bank says it deployed various strategies to recover the loans, including working with borrowers to restructure their debt, negotiating settlements, and enforcing legal actions where necessary. The recovery of these funds is expected to boost the bank’s overall financial health and improve its capital adequacy ratio.
According to the Managing Director (MD) of ADB, Alhassan Yakubu-Tali the Bank’s recovery strategy coupled with the expertise and perseverance of the Recovery Department are the results of the impressive feat which has helped enhance shareholder value.
“Our proactive approach to loan recovery has paid off. We will continue to work closely with regulatory bodies to ensure the integrity of our loan portfolio and maintain the highest standards of risk management,” Mr. Yakubu-Tali is quoted by the B&FT to have said.
The General Manager (GM) in charge of recoveries, Sylvia Nyante stated that the successful recovery rate reflects the commitment of all stakeholders to ensure the achievement of the Bank’s recovery objectives. She noted the objective of this exercise is to ensure total recovery of all historical NPLs, stating that ADB will continue to intensify our collaborative efforts with all stakeholders for a successful exercise.
By recovering over GH₵500 million in NPLs, ADB has been able to strengthen its balance sheet, creating more room for the bank to lend to new and existing clients. The improved balance sheet also enhances ADB’s ability to finance projects in critical sectors such as agriculture, which is its core mandate.
The recovery of bad loans is likely to also have a positive impact on the bank’s profitability, as it reduces the need for loan loss provisions, which had previously eroded profits. With fewer bad loans on its books, ADB is expected to post stronger financial results, enhancing investor confidence and positioning the bank for future growth.
The bank’s focus on resolving its NPL issues is also aligned with its goal of expanding lending to key sectors, particularly agriculture, SMEs, and manufacturing, which are critical for Ghana’s economic development.
