The Agricultural Development Bank (ADB) PLC, as part of its two-year corporate strategy, undertook an assertive loan recovery initiative, successfully retrieving over 500 million Ghana cedis in non-performing loans (NPLs) within just nine months.
From January to September 2024, the total recovered amount reached Five Hundred and Fourteen Million, Nine Hundred and Ninety-Nine Thousand Ghana Cedis (GHS514.99 Million).
A significant portion of the Bank’s NPL portfolio consists of long-standing bad legacy loans. To tackle this issue, management empowered the Bank’s Recovery Department to aggressively pursue all non-performing loans, aligning with its comprehensive recapitalization plan.
This accomplishment, credited to the Management and Staff, reflects the Bank’s strong commitment to cleaning up its balance sheet, promoting responsible lending, implementing robust risk management, and safeguarding its clients while adhering to industry best practices.
Alhassan Yakubu-Tali, Managing Director of ADB, with less than two years in office, attributed the impressive outcome to the Bank’s strategic recovery efforts and the skill and determination of the Recovery Department, which have boosted shareholder value.
The Bank’s enhanced risk management practices have also played a key role in reducing non-performing loans, building confidence, and strengthening its financial stability.
“Our proactive approach to loan recovery has paid off. 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,” said the MD. The aggressive recovery exercise so far has greatly impacted the Bank’s operations, augmented our comprehensive recapitalization agenda, and has put the Bank on the path of sustained growth and profitability. He emphasized.
Sylvia Nyante, the General Manager (GM) responsible for recoveries, noted that the impressive recovery rate demonstrates the dedication of all stakeholders in realizing the Bank’s recovery goals.
“Management took a bold decision as part of the strategy to focus on recovery which is yielding significant results,” Madam Sylvia said. “The objective of this exercise is to ensure total recovery of all historical NPLs, and so we want to thank all our stakeholders and customers for their support in this process so far,” she added. “We will continue to intensify our collaborative efforts with all stakeholders for a successful exercise,” Madam Sylvia further added.
The Agricultural Development Bank PLC stands as one of the largest universal banks in the country and a frontrunner in agribusiness financing.
The Bank has delivered solid financial results across various metrics, including deposits, profitability, and asset growth.
Additionally, it secured multiple five-star awards at the recent CIMG Customer Satisfaction Index Report Launch and Awards Night.