ADB posts GH¢367m profit after tax — Capital adequacy ratio rises to 27.17%
Agricultural Development Bank (ADB) PLC has pulled off a stunning financial turnaround, recording GH¢367.2 million historical profit for the end of 2025.
According to the bank’s audited financial statements for the year ended December 31, 2025, ADB PLC recorded a profit after tax of GH¢367.2 million, a quantum leap from the GH¢35 million profit recorded in 2024.
The recovery has been driven by a successful recapitalisation exercise and a sharp focus on recovering non-performing loans (NPLs).
Turnaround in numbers
The bank’s total assets grew by 22 per cent to more than GH¢17 billion. The growth was underpinned by a significant increase in investment securities, which rose from GH¢3.8 billion to GH¢5 billion.
The bank made significant strides in cleaning up its books. Recoveries from NPLs totalled GH¢301.4 million, which, alongside a profit of GH¢367.3 million, helped the bank enhance its equity position.
Although the NPL ratio remains relatively high at 70.53 per cent, it is a marked improvement from the 75.26 per cent seen a year prior.
The bank continues its aggressive recoveries as part of the strategy to further strengthen its balance sheet.
Recapitalisation
The bank received a deposit of GH¢850 million for shares, albeit yet to be registered, which has strengthened its capital position and improved the CAR to 27.17 per cent, supported by recoveries of GH¢381.4 million from non-performing loans and a profit of GH¢367.3 million.
In 2024, the bank’s CAR stood at (3.15 per cent), well below regulatory requirements.
The improved CAR of 27.17 per cent provides a solid buffer for the bank’s operations.
ADB's core banking operations saw explosive growth. Net interest income nearly doubled, reaching GH¢1.37 billion. This suggests that despite the focus on recovery, the Bank’s lending and investment strategies are yielding much higher returns than in previous years.
Shareholder value, equity
The bank’s total equity saw a significant rise, jumping from GH¢1.27 billion to GH¢2.47 billion.
This increase was supported by GH¢850 million in proceeds from a deposit for shares, signalling strong investor confidence in the bank’s new direction.
Future rooted in agriculture
Despite the heavy focus on financial restructuring, ADB has not abandoned its core mission.
The bank spent GH¢2.95 million on corporate social responsibility (CSR), including the sponsorship of the National Best Farmer Award and donations to schools.
ADB’s 2025 performance is expected to reinforce investor confidence and position the bank for the next phase of growth in line with its strategic vision to be among the top three performing banks in Ghana.