ADB Posts GH¢367 Million Profit After Tax as Capital Adequacy Ratio Soars to 27.17%-Ghana

Agricultural Development Bank (ADB) PLC has delivered a remarkable financial turnaround, posting a profit after tax of GH¢367.2 million for 2025, according to its audited financial statements. This represents a massive leap from the GH¢35 million recorded in 2024, underscoring the success of the bank’s recent strategic and financial restructuring efforts.

The recovery has been largely driven by a combination of a successful recapitalisation exercise and rigorous efforts to recover non-performing loans (NPLs). ADB’s total assets grew 22% year-on-year, surpassing GH¢17 billion, supported by a significant increase in investment securities, which climbed from GH¢3.8 billion to GH¢5 billion. Recoveries from NPLs alone amounted to GH¢301.4 million, helping strengthen the bank’s equity position.

Despite a high NPL ratio of 70.53%, it marks a notable improvement from 75.26% in 2024. The bank continues to pursue aggressive recoveries as part of its broader strategy to stabilize its balance sheet and boost investor confidence. The recapitalisation also played a crucial role, with GH¢850 million in deposits for shares enhancing the bank’s capital base and driving its capital adequacy ratio (CAR) to a robust 27.17% from a low 3.15% the previous year.

ADB’s core banking operations also showed strong growth, with net interest income nearly doubling to GH¢1.37 billion. Total equity jumped from GH¢1.27 billion to GH¢2.47 billion, reflecting both the impact of the bank’s profitability and strong investor support. Analysts suggest that this growth signals the effectiveness of ADB’s lending and investment strategies alongside its recovery initiatives.

Despite the focus on financial restructuring, ADB has maintained its commitment to agriculture and social responsibility. The bank invested GH¢2.95 million in corporate social responsibility initiatives, including sponsorship of the National Best Farmer Award and donations to schools. The 2025 performance positions ADB to reinforce investor confidence and advance toward its goal of becoming one of Ghana’s top three performing banks.

source: graphic