The Agricultural Development Bank (ADB) PLC has made significant strides in addressing its legacy of non-performing loans (NPLs), successfully recovering over 500 million Ghana cedis as part of an aggressive recovery initiative launched under its two-year corporate strategy. From January to September 2024, the bank recovered a total of Five Hundred and Fourteen Million, Nine Hundred and Ninety-Nine Thousand Ghana Cedis (GHS514.99 million).
ADB’s NPL portfolio had accumulated over years, consisting largely of bad legacy loans. In a decisive move to address this issue, the bank’s management bolstered its Recovery Department, launching a determined effort to recover non-performing loans as part of its broader 360-degree recapitalization agenda. This aggressive approach has not only yielded impressive results but also demonstrates the bank’s commitment to maintaining a healthy financial position, ensuring prudent lending practices, and upholding best industry standards.
Alhassan Yakubu-Tali, Managing Director (MD) of ADB, attributed the bank’s success to a focused recovery strategy and the dedication of the Recovery Department. Under his leadership, which spans less than two years, the team’s expertise and determination have led to the substantial recovery of funds, ultimately enhancing shareholder value.
Yakubu-Tali emphasized that ADB’s improved risk management practices have been crucial to reducing its NPLs. The bank’s proactive approach to loan recovery has significantly strengthened its financial stability, helping to rebuild confidence and position the bank for continued growth. “Our proactive approach to loan recovery has paid off,” Yakubu-Tali stated. “We will continue to work closely with regulatory bodies to ensure the integrity of our loan portfolio and maintain the highest standards of risk management.”
The MD further explained that the recovery initiative has had a profound impact on ADB’s overall operations, contributing positively to the bank’s comprehensive recapitalization efforts. These efforts, combined with prudent financial management, have set ADB on a clear path toward sustained growth and profitability.
Sylvia Nyante, General Manager (GM) in charge of recoveries at ADB, also praised the success of the recovery exercise, stating that it reflects the commitment of all stakeholders involved. “Management took a bold decision as part of the strategy to focus on recovery, which is yielding significant results,” Madam Sylvia said. She further added that the bank’s aim is to ensure the total recovery of all historical NPLs. She expressed her gratitude to all stakeholders and customers for their continued support throughout the process and pledged to intensify collaborative efforts moving forward.
The remarkable recovery achievement comes at a time when ADB is positioning itself as a leader in the country’s banking sector. Known for its role in agribusiness financing, ADB is one of the biggest universal banks in Ghana. The bank’s financial performance has shown consistent improvement across key indicators, including deposits, profitability, and asset growth.
In addition to its financial success, ADB has received notable recognition in the banking industry. At the recently held Chartered Institute of Marketing Ghana (CIMG) Customer Satisfaction Index Report Launch and Awards night, the bank earned multiple five-star awards, further solidifying its reputation for excellence.
As ADB continues to recover from its legacy NPLs and implements its comprehensive recapitalization strategy, the bank is poised to achieve even greater financial stability and growth. The success of the recovery initiative has set the stage for sustained profitability and enhanced shareholder value, while also ensuring that ADB remains a key player in the banking sector, particularly in agribusiness financing.
The bank’s focus on sound risk management, alongside its commitment to prudent lending practices, has put it in a strong position to navigate the challenges of the financial sector and continue its growth trajectory. With the continued support of stakeholders and customers, ADB is well on its way to becoming a more resilient and profitable institution, ready to meet the needs of its customers and contribute to the development of the Ghanaian economy.
The recovery of over GHS500 million in non-performing loans is a major milestone for ADB, and the bank’s management remains confident in its ability to build on this success. With its sights set on future growth and a renewed commitment to financial discipline, ADB is ready to move forward with confidence and determination.
