The Agricultural Development Bank (ADB) has posted strong signs of a turnaround, significantly reducing its cost-to-income ratio and charting a clear path toward profitability and dividend payments.
At the bank’s Annual General Meeting, Managing Director Edward Ato Sarpong disclosed that ADB’s cost-cutting measures had pushed the cost-to-income ratio down to the 60s, an improvement from 91% in 2024 and 110% in 2023.
“In 2023, the bank spent 11 cedis to earn 10 cedis. Last year, that improved to 91%. This year, we are in the 60s, and our objective by year-end is about 58%,” he explained.
The turnaround has been driven by tighter cost controls, renegotiated contracts, and aligning expenditures to revenue.
With profitability improving, ADB aims to clear its GHS 2 billion negative income surplus balance, a condition required before dividend payouts. Mr. Sarpong revealed the bank’s bold target of GHS 1 billion in profits, which would halve the deficit.
ADB’s strong recovery is highlighted in its financial results, with the bank recording GHS 250 million profit in the first half of 2025, far exceeding the GHS 35 million achieved in all of 2024.
Operating income rose by 48% year-on-year, while deposits increased by GHS 900 million within six months.
“What I can assure shareholders is that there’s a clear plan to move the bank forward. The plan is working. The waters are treacherous, but there is enough grit and determination within the management and board to put ADB in a much better place than we found it,” Mr. Sarpong said.
Source: myxyzonline.com
