The Agricultural Development Bank PLC (ADB) has staged a dramatic turnaround in 2024, posting a profit of GH₵41 million after recording a staggering GH₵767 million loss the previous year. The bank’s audited end-of-year financial statement for 2024 reveals a comeback built on stronger deposits, improved liquidity, and lower impairment charges.
Total assets grew 57% to GH₵14.6 billion, underpinned by a surge in cash and equivalents, which nearly doubled to GH₵7.2 billion. Customer deposits were the key driver, climbing 41% to GH₵12.1 billion, a sign that confidence in the bank’s stability has returned. At the same time, the bank scaled back lending, with loans and advances dipping to GH₵2.6 billion from GH₵2.9 billion, and instead leaned on government securities, which almost doubled to GH₵3.8 billion.
A successful GH₵1.2 billion rights issue proved decisive in restoring the bank’s balance sheet. Shareholder funds swung from a negative GH₵102 million in 2023 to a positive GH₵1.28 billion in 2024, strengthening solvency and offering a buffer for future shocks.
The bank’s income statement also showed clear improvement. Net interest income more than doubled to GH₵724 million, boosted by lower funding costs and better yields on investments. Loan-loss provisions fell to GH₵303 million, less than half of 2023’s GH₵838 million, easing pressure on the bottom line.
However, challenges remain. Non-performing loans worsened to 75.3% of gross loans, up from 70.3% in 2023, leaving ADB with one of the weakest loan books in the sector. Capital adequacy, though improved, is still in negative territory at -3.15%, raising questions about long-term regulatory compliance.
Overall, the 2024 financials mark a year of recovery for ADB. Through stronger deposit mobilization, prudent asset allocation, and capital raising, the bank has clawed back into profitability. Yet, with loan quality still deeply impaired, sustaining this momentum will depend on how quickly management can clean up the balance sheet while supporting Ghana’s broader agricultural financing agenda.
