ADB records strong turnaround with GH¢367m profit in 2025

The Agricultural Development Bank (ADB) has recorded a significant turnaround in its financial performance in 2025, posting a profit after tax of GH¢367.29 million compared to a marginal profit of GH¢35.06 million in 2024.

According to the bank’s 2025 Annual Report and Financial Statements, the improved performance was driven by enhanced operational efficiency, stronger revenue generation and the positive impact of the bank’s recapitalisation programme.

The bank said the strong earnings position enabled it to transfer GH¢183.65 million to its Statutory Reserve from retained earnings during the year, with the cumulative balance on the Statutory Reserve Fund rising to GH¢383.19 million at the end of 2025, up from GH¢199.56 million in 2024.

ADB’s total assets also grew significantly to approximately GH¢17.9 billion in 2025 from GH¢14.6 billion in the previous year. The growth was largely attributed to increased investment securities and improved liquidity.

Total operating income rose to about GH¢1.75 billion from GH¢1.0 billion in 2024, supported by higher interest income of GH¢2.09 billion and growth in fee and commission income, which reached approximately GH¢284 million.

The bank’s capital position also improved markedly, following the Government of Ghana’s deposit for shares initiative. Its Capital Adequacy Ratio strengthened to 27.17% from a negative 3.15% in 2024.

Shareholders’ equity increased to approximately GH¢2.48 billion, reflecting what the bank described as restored solvency and enhanced financial resilience.

Despite the strong recovery, management acknowledged that asset quality remains a key area of focus. The bank’s non-performing loan (NPL) ratio improved to 70.5% in 2025 from 75% in 2024 as recovery efforts intensified.

The bank’s earnings per share improved to 0.22 Ghana pesewas in 2025 from 0.02 Ghana pesewas in 2024. Return on equity rose sharply to 15% from 3%, while return on assets increased to 2% from virtually zero a year earlier.

ADB maintained its workforce at 1,473 employees and operated through 89 branches and agencies across the country.

The Board of Directors, however, did not recommend the payment of a dividend for the 2025 financial year.

The report noted that the 2025 financial year marked a pivotal step in ADB’s recovery journey, positioning the bank for sustained growth and long-term value creation.

“The Bank recorded a significant turnaround in its financial performance for the year ended 2025, underpinned by improved operational efficiency, enhanced revenue generation, and the positive impact of the recapitalisation programme,” the report stated.