Agriculture Development Bank PLC Holds Its 36th Annual General Meeting

On August 9th, 2023, in Accra’s British Council auditorium The Agricultural Development Bank (ADB), which harnesses the transformative power of agribusiness for wealth creation, introduces its annual culture of fiscal turn-over accountability.

Which warmly calls for the assembly of all major shareholders and stakeholders to witness the previous year’s performance in 2022.

Daasebre Akuamoah Agyapong II, the board chair, the Paramount of the Kwawu traditional council, and the vice president of the Eastern Regional House of Chiefs were in attendance.

Daasebre Akuamoah Agyapong II, the board chair, the president of the Kwawu traditional council, and the vice president of the Eastern Regional House of Chiefs, Mr. Alhassan Yakubu-Tali, Managing Director (MD), Mr. George Kwabena Abankwa-Yeboah (non-executive director), Prof. Peter Quartey (non-executive director), and Hon. Habib Idrisu (non-executive director) were all in attendance.

 

 

Other key management personnel present are Eno. Ofori-Atta (Dep.Managing Director), Godwyll Ansah (company secretary), Mohammed Ali (Head of Marketing), and others.

The Board chairman stated, the Ghanaian economy witnessed a significant decline in the year 2022 as a result of a combination of economic factors, including high prices for imported commodities such as petroleum products and grains,soaring inflation and interest rates,and a significant depreciation of the Ghana cedi.

Real GDP growth slowed to 3.3% in 2022 from 5.4% in 2021, due largely to the above-mentioned macroeconomic instability,global financial tightening,and spillover effects of Russia’s invasion of Ukraine in February 2022. Inflation was estimated at 31.5% in 2022, up from 10% in 2021, driven by food and energy prices and the depreciating local currency. The Bank of Ghana tightened monitoring policy; the policy rate was hiked to 27% in 2022 from 14.5% in 2021.

Deposit rates,including demand deposits, savings deposits,and time deposits, remained relatively stable with minor variations. However, time deposit rates showed slight fluctuations,with the 3-month rate ranging from 11.50% to 14.00% and the 6-month rate ranging from 10.00% to 14.25% in 2022.

 

Performance OF ADB:
The Bank recorded a loss after tax of GHS 371 million, compared to a profit after tax of GHS 81.6 million in the previous year. The loss recorded was mainly a result of impairment on other financial assets, specifically the Domestic Department Exchange Programme (DDEP) and loans. This resulted in a decline in the Return on equity and return on assets to 56.41% and 5.01%, respectively,as compared to 8.7 and 1.26, respectively, of the previous year.
The size of the balance sheet grew over the year from GHS 6.5 billion in 2021 to GHS 7.4 billion in 2022, representing 14.9 percent growth.
The non-performing loan portfolio of the Bank witnessed a reduction from 31.21% to 29.74%. The objective of the bank, however, is to significantly reduce the NPL ratio to attain the industry brackets by the end of 2024.
Deposits grew by 19% from GHS 4.9 billion to GHS 5.9 billion. At the end of 2022, the CAR was 7.3%. which was below the regulatory minimum of 10%.

 

Corporate Social Responsibility (CSR)
As part of the bank’s commitment to ensuring growth in the Agricultural sector as well as contributing to the wider stakeholder community,the bank engaged in some CSR projects to promote and enhance socio-economic developments in our communities of operation and the country as a whole. In regard to this, the Bank spent GHS 3 million on corporate social responsibilities. These include the national best farmer,donations to schools,and others of National interest.

On behalf of the board of directors,the chairman expresses his sincere appreciation to all stakeholders, especially shareholders,customers, the government of Ghana, the ministry of food and agriculture, the ministry of finance,state interests, and the Bank of Ghana, the government authority,for your continued support over the years.

We are thankful for your loyalty and patience. We have confidence in the bank’s prospects and would like to assure you that we are making every effort to remain steadfast in our fast recovery.

Alhassan Yakubu-Tali, The Managing Director of the Bank issued a statement on the “Financial Performance”, In 2022, the bank reported a loss of GHS 371 million. This was a reflection of the impact of what turned out to be a challenging year for the Ghanaian economy. The implementation of the Domestic Department Exchange Programme (DDEP) resulted in a lack of market liquidity for government bonds in Ghana. These significant unfavorable events during the year under review had not only adverse effects on ADB’s financial performance for 2022 but also repercussions for the future.

OPERATIONAL PERFORMANCE
As the People’s Bank,at the heart of our operations lies an unwavering commitment to our cherished customers and stakeholders, and we seek to go above and beyond the norm with a determination to harness the transformational power of agribusiness for wealth creation.

In the review period, the Bank added the Takoradi-Market Circle Branch to its branch network, bringing the total number of retail outlets across the country to 87.
The Bank has a presence in all 16 regions of Ghana and will seek to increase its numbers in the years ahead as part of making banking services available to all.

 

 

 

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