Agric Development Bank posts financial growth in first two quarters

The Agricultural Development Bank (ADB) has posted impressive financial growth in its half year results even in the face of the Coronavirus pandemic that wreaked havoc to all sectors of the economy.

A statement signed by Dr John Kofi Mensah, Managing Director of the bank and copied to the Ghana News Agency in Accra said the unaudited half-year results published by the Bank showed a growth in all key performances such as assets, deposits, loans, net interest income among others.

“The Bank’s total asset grew by more than GH¢800 million or 17.17 per cent from GH¢4.04 billion to GH¢4.88 billion on the back of 26.6 percent growth in the loan book from GH¢1.22 billion to GH¢1.66 billion from June 2019 to June 2020. It has been able to increase its deposits, despite the uncertainty of customers about how and what to save, from GH¢2.95 billion to GH¢3.68 billion, a difference of GH¢727.77 million or 19.76 percent growth.”

The statement was to spell out their performance in the first two quarters of the year.

It said the bank stayed true to its core business of financing agriculture and agribusinesses and with the pandemic, the nation needed to secure its food production process.

“The pandemic has shown to us that we are on the right path, when it comes to sustaining Ghana’s food security. With our borders closed and other trading partners closing their borders, it meant that we have to look inward to keep feeding ourselves and with strategic financing from us, our farmers and players along the agriculture value chain have not disappointed,”.

On the bank’s initiatives, the statement said there was a comprehensive financing scheme for the poultry value chain, which could make Ghana become self-sufficient in poultry production by 2022.

The statement said the bank recently presented a GH¢23.2 million loan facility to six players in the poultry value chain and it was to be replicated nationwide within the next two years.

“The facility would finance a comprehensive GH¢500 million programme, that will reduce reliance on imported chicken, protect the local currency and promote sustainable jobs in the agriculture sector.

“The project, expected to be replicated in six other regions of the country is being coordinated in partnership with the Ministries of Finance, and food and agriculture; and the Outgrower and Value Chain Fund (OVCF) and Ghana Incentive-Based Risk-Sharing System for Agricultural Lending Project (GIRSAL).

According to the statement, the Bank’s digital banking products kept it in business during the period since customers could still do business without necessarily being in the Banking halls.

“Being a caring bank, we rolled out several digital channels and reduced the cost of using them to ensure our customers remained with us, and most of the loans were targeted at agribusiness to avoid any possibility of food shortage in the medium and long term.

Source: GNA