The Agricultural Development Bank (ADB) recorded a remarkable improvement in its financial performance in 2025, posting a profit after tax of GH¢367.29 million, a sharp increase from GH¢35.06 million in 2024.
The strong results, contained in the bank’s 2025 Annual Report and Financial Statements, reflect a major turnaround for the state-owned lender as it continues its recovery and restructuring efforts.
According to the report, the improved performance was driven by enhanced operational efficiency, stronger revenue mobilisation and the positive impact of the bank’s recapitalisation programme.
“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.
Revenue and Assets Record Strong Growth
ADB’s earnings growth was supported by a substantial increase in operating income, which rose to approximately GH¢1.75 billion in 2025 from GH¢1.0 billion the previous year.
Interest income climbed to GH¢2.09 billion, while fee and commission income increased to about GH¢284 million, reflecting stronger business activity and improved income diversification.
The bank’s balance sheet also expanded significantly during the year. Total assets grew to about GH¢17.9 billion from GH¢14.6 billion in 2024, largely due to increased investment securities and stronger liquidity levels.
The robust financial performance enabled ADB to transfer GH¢183.65 million from retained earnings into its Statutory Reserve Fund. As a result, the cumulative balance of the reserve increased to GH¢383.19 million at the end of 2025, up from GH¢199.56 million a year earlier.
One of the most notable developments was the significant improvement in the bank’s capital position following the Government of Ghana’s deposit for shares initiative.
ADB’s Capital Adequacy Ratio improved to 27.17 per cent in 2025 from a negative 3.15 per cent in 2024, indicating a return to a strong capital footing.
Shareholders’ equity also rose substantially to approximately GH¢2.48 billion, which the bank said reflected restored solvency and enhanced financial resilience.
The bank’s profitability indicators showed marked improvement, with return on equity rising to 15 per cent from 3 per cent, while return on assets increased to 2 per cent from near zero in the previous year. Earnings per share also improved to 0.22 Ghana pesewas from 0.02 Ghana pesewas.
Focus on Asset Quality
Despite the positive results, management acknowledged that asset quality remains a key challenge. The non performing loan ratio improved to 70.5 per cent from 75 per cent in 2024 as recovery efforts intensified, although the level remains elevated.
ADB maintained a workforce of 1,473 employees and operated through 89 branches and agencies nationwide during the year.
The Board of Directors did not recommend the payment of a dividend for the 2025 financial year, opting instead to strengthen the bank’s financial position.
The report described 2025 as a pivotal year in ADB’s recovery journey, laying a stronger foundation for sustainable growth, improved profitability and long term value creation.
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