Shareholders of the Agricultural Development Bank (ADB) have unanimously approved GHȻ 127 million from the Ghana Amalgamated Trust (GAT) to enable the Bank meet the GHȻ400 million Minimum Capital Requirement (MCR) set by Bank of Ghana (BoG).
At an Annual General Meeting held in Accra yesterday shareholders gave authorization to the Board to issue shares by private placement of ordinary shares to GAT in order to raise the GHȻ 127 million to increase the Bank’s stated capital to GH₵400 Million.
The Chairman of the Board of Directors, Mr. Alex Bernasko explained that as of June 30, 2019, the Bank’s unimpaired and impaired capital stood at GHȻ571million and GHȻ273million respectively.
“As part of measures to raise the additional capital to comply with the MCR, the Bank undertook a renounceable rights issue in March 2019 but was however unable to meet its target,” Mr Bernasko disclosed.
On the Bank’s financial performance, he stated that the Bank recorded a profit before tax of GHȻ34million in 2018, registering a dip from GHȻ47million achieved in 2017, describing 2018 “as a year that held a lot of challenges for the Bank ranging from changes in our shareholding structure to effects of regulatory reforms.”
Mr Bernasko was optimistic that the 5-year strategic plan which span from 2018-2022 will set the foundations of the Bank for better performance going forward, adding that the Bank was hopeful of attaining its objectives of becoming a leader in the financial industry.
He emphasized the need for the Bank to mobilize more deposits, book quality loans and recover its Non-Performing Loans (NPLs).
Mr Bernasko called on the public to be rest assured that ADB will continue to invest in the agricultural sector despite the introduction of the Ghana Amalgamated Trust.
The Managing Director of ADB, Dr. John Kofi Mensah in a brief message said the Bank remained committed to investing in the agricultural sector and was optimistic the five year strategic programme of the Board will yield positive results.
He indicated that the Bank will continue to leverage on its wide branch network which always gives it the necessary competitive advantage.
The Ghana Amalgamated Trust (GAT) is special purpose vehicle by government to inject capital in five Banks that were unable to meet the GHS 400 Million minimum requirement of the Bank of Ghana.
