As part of its two-year corporate strategy, the Agricultural Development Bank (ADB) PLC launched a vigorous recovery exercise that resulted in the successful retrieval of more than 500 million Ghana cedis in non-performing loans (NPLs) within a short span of nine months.
From January to September 2024, the total amount recovered is GHS514.99 million.
The majority of the Bank’s Non-Performing Loans portfolio consists of legacy loans that have been performing poorly for years. Management made a bold move by allocating more resources to the Bank’s Recovery Department in order to aggressively recover all non-performing loans as part of its comprehensive recapitalization strategy.
The Bank’s success is a clear indication of the dedication shown by the Management and Staff in ensuring clean books, promoting responsible lending, and enhancing risk management to safeguard customers and maintain industry standards.
The Managing Director (MD) of ADB, Alhassan Yakubu-Tali, who has been in office for less than 2 years, credits the Bank’s recovery strategy and the dedication of the Recovery Department for the impressive feat that has boosted shareholder value.
The Bank’s enhanced risk management practices have helped decrease its non-performing loans, build confidence, and bolster its financial stability.
Our strategy of actively pursuing loan recoveries has proven successful. The Managing Director stated that they will keep collaborating with regulatory bodies to safeguard the integrity of their loan portfolio and uphold top-notch risk management practices. The Bank’s aggressive recovery exercise has had a significant impact on operations, enhancing our comprehensive recapitalization agenda and positioning the Bank for sustained growth and profitability. He placed great emphasis on this point.
Sylvia Nyante, the General Manager (GM) overseeing recoveries, noted that the successful recovery rate showcases the dedication of all stakeholders in working towards the Bank’s recovery objectives.
Madam Sylvia stated that management made a bold decision as part of their recovery-focused strategy, and it is already showing significant results. The goal of this exercise is to guarantee the complete recovery of all historical NPLs. We are grateful to our stakeholders and customers for their support during this process. Madam Sylvia emphasized the importance of increasing collaboration with all stakeholders to ensure a successful exercise.
The Agricultural Development Bank PLC stands as one of the largest universal banks in the nation, known for its pioneering role in providing financial support for agribusiness.
The Bank has seen strong financial performance in all areas, such as deposits, profitability, and asset growth.
At the recently held CIMG Customer Satisfaction Index Report Launch and Awards night, it won multiple five (5) star awards.
