<<Print>>

There is a strong indication of the Agric Development Bank meeting the Central Bank�s new capital requirements soon. Currently the bank�s stated capital has risen to GH� 50 million as share holders agreed in the course of the year 2008 to transfer GH� 30 million from the Income Surplus Account to Stated Capital as a first step towards the attainment of the new minimum capital requirement. According to the bank�s Annual Report for 2008 which the Financial Intelligence (FI) has managed to lay hands on, the bank�s stated capital �rose to GH� 50 million during the year�. The bank�s profitability in the past year also looks quite good as against what it was in 2007. The bank�s net profit for 2008 cruised to GH�14.93 million as against GH�11.60 million in 2007, representing an increase of 28.77%. �The profit translates into Return on Assets and Return on Equity of 2.39% and 13.74% respectively compared with ratios of 2.12% and 11.65% in 2007�, said the Managing Director in the Annual Report. The balance sheet of ADB showed appreciable growth during the 2008 financial year, with total assets growing by 34.20% from GH� 465.19 million at the end of December 2007 to GH� 624,27million at the end of December 2008. The bank�s asset growth was mainly catalyzed by the 57.1 % expansion in the credit portfolio. Total deposits also rose from GH�271, 024,641 in 2007 to GH�319,499,930, representing a growth of 17.89 % as against the 15.62% growth realized in 2007, and shareholders funds also went up by 13.70% from GH�94.709,691 at the end of December 2007 to GH�107,681,224 as at 31st December 2008. The bank is gearing itself for the future as the board gave its final approval for the Strategic plan for 2009-2013 which seeks to reposition the ADB Brand for competitive advantage in the current competitive environment in the banking industry and the financial sector in general. �The bank would refocus on its core establishment mission and put agriculture at the centre of its financing activities�, said the MD, Yaw Opoku Atuahene, adding that the plan also seeks to emphasize organizational effectiveness and efficiency through improvements in the business processes which places the customer at the centre of whatever they do. The MD who was appointed to the position in March 2008 noted that 2009 would be a more challenging year for the bank as the effects of the global financial crunch begins to take its toll on economies of many developing countries. This he said would be exacerbated by the intense competition in the finance world in Ghana as banks would be increasing their stated capital positions in compliance with central bank regulations for minimum capitalization requirements. He said ADB would put in the necessary strategic interventions that would ensure the achievement of their strategic goals.