• Login
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
  • Home
  • News
    • General
    • Political
  • Economy
  • Business
    • Agribusiness
    • Aviation
    • Banking & Finance
    • Energy
    • Insurance
    • Manufacturing
    • Markets
    • Maritime
    • Real Estate
    • Tourism
    • Transport
  • Technology
    • Telecom
    • Cyber-security
    • Cryptocurrency
    • Tech-guide
    • Social Media
  • Features
    • Interviews
    • Opinions
  • Reports
    • Banking/Finance
    • Insurance
    • Budgets
    • GDP
    • Inflation
    • Central Bank
    • Sec/Gse
  • Lifestyle
    • Sports
    • Entertainment
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video
No Result
View All Result
No Result
View All Result
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
No Result
View All Result
Home Business Banking & Finance

ADB shareholders approve GHS 2 billion additional capital injection

2 years ago
in Banking & Finance, Features, highlights, Home, home-news, latest News
2 min read
0 0
0
104
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

ADB shareholders approve GHS 2 billion additional capital injection

Shareholders of the Agricultural Development Bank (ADB) PLC have granted approval for a record capital injection of Two Billion Ghana Cedis (GHS2 Billion) into the Bank to strengthen its operations.

The resolution was passed at an Extraordinary General Meeting (EGM) of the shareholders on Thursday, December 28, 2023, at the Accra Financial Centre. The resolution was in furtherance of the Bank’s intention to raise additional capital to shore up its minimum paid-up capital which has been adversely affected by factors including the impact of the recent Domestic Debt Exchange Programme (DDEP) and challenged performance of the banking sector over the past two years, among others.

The resolution received an overwhelming endorsement, without any opposition or abstention. The approval has now empowered the Bank to raise the additional equity capital of up to GHS2 billion through a renounceable rights issue on such terms (including the share price, the number of offer shares, allotment, and other modalities).

Need for Additional Capital

Speaking at the EGM, the Board Chairman of the Bank, Daasebre Akuamoah Agyapong II, indicated that per Section 28(1) of the Banks and Specialized Deposit-Taking Institutions Act, 2016 (Act 930), ADB is required to maintain the prescribed minimum paid-up capital (unimpaired by losses including accumulating losses, or other adjustments).

“The current minimum paid-up capital prescribed by the Bank of Ghana for banks, including ADB, is GHS 400 million,” he added.

RelatedPosts

Parliament Adjourns Sine Die After Intense Legislative Session Marked by Reform Calls and Tributes

GACL Terminates Evatex Revenue Assurance Contract Amid OSP Probe

Cyber Security Authority Flags Rising Mobile Data Scam, Cautions Public

However, Daasebre Akuamoah Agyapong II noted that the recent adverse economic events (including the DDEP and impairments in the loan book of the Bank) unfavorably impacted the minimum paid-up capital of the Bank.

Also read  Gold-for-Oil: 11 OMCs fail to reduce prices on first consignment

This, the Board Chairman said, birthed the Bank’s intention to raise additional capital to shore up its minimum paid-up capital.

Daasebre Akuamoah Agyapong II, highlighted the crucial role this capital infusion would play in advancing the mandate of the Bank in promoting socio-economic development through agriculture and more.

Liquidity

The Bank’s third-quarter results showed growth in Net Interest Income and Operating Income of GHS 397 million and GHS 621 million respectively.

Although the Bank reported a decline in net profit at the end of Q3 2023 largely due to phase II of the DDEP and impairments, deposits from customers increased significantly to GHS 7.7 billion, from GHS 5.2 billion in 2022 Q3. This is mainly a result of the Bank’s ability to achieve its deposit target, by mobilizing the GHS2.5 billion additional deposits from customers.

The Bank’s total assets also grew significantly from GHS 7.1 billion in Q3 2022, to GHS 9.3 billion in Q3 2023, indicating a substantial asset increase or growth of GHS 2.2 billion.

ADB’s liabilities also saw significant growth to GHS 8.6 billion in Q3 2023, compared to GHS 6.1 billion in Q3 2022.

Outlook of the Bank, following the capital injection

The Bank’s shareholders overwhelmingly voted in favour of all the resolutions tabled at the EGM, indicating their enthusiastic willingness to recapitalize the Bank to enable it continue to play its strategic role in agricultural development in Ghana.

In his remarks following the EGM, the Managing Director of the Bank, Alhaji Alhassan Yakubu-Tali, expressed gratitude for the resounding vote of confidence from the shareholders, adding that the additional capital will undoubtedly significantly enhance the overall operations of ADB.

Also read  BoG urged to impose 5% ceiling on forex bureau rates to stem speculation

“The additional capital injection will provide solidity and more comfort to our customers, investors, and the general public. For this gesture, I want to say a big thank you to our shareholders for the significant milestone chalked,” he said.

Alhaji Alhassan Yakubu-Tali added that the injunction of the additional capital would not only fortify the Bank’s financial strength but also position it strategically to extend its continuous support to the agricultural sector and other critical areas of operations.

Other resolutions, including the approval of the appointment of a new external auditor for ADB, were also overwhelmingly passed in line with due process.

The Agricultural Development Bank PLC is listed on the Ghana Stock Exchange, with majority of its shares being owned by the government. The Bank also has a sizeable proportion of private institutional and retail shareholders.

Source: mypublisher24
Via: norvanreports
Tags: ADBADB shareholders approve GHS 2 billion additional capital injectioncapital injection
No Result
View All Result

Highlights

Gov’t Reopens Talks With PayPal to Restore Full Service Access in Ghana

Financial Sector Assets up 34.6% in 2024 to GHS 525.59 Billion

Banking Sector Soundness Remains Robust in 2024 Amid Strong Profitability, Adequate Capital Buffers

Sha’Carri Richardson Withdraws from US Trials Following Arrest

From Singuluma to El Kaabi: Can CHAN 2024 Unleash the Next Hat-trick Hero?

Ghana to Welcome King’s Baton Relay on August 8 Ahead of 2026 Commonwealth Games

Trending

Features

Parliament Adjourns Sine Die After Intense Legislative Session Marked by Reform Calls and Tributes

August 2, 2025

Parliament Adjourns Sine Die After Intense Legislative Session Marked by Reform Calls and Tributes Parliament has adjourned...

GACL Terminates Evatex Revenue Assurance Contract Amid OSP Probe

August 2, 2025

Cyber Security Authority Flags Rising Mobile Data Scam, Cautions Public

August 2, 2025

Gov’t Reopens Talks With PayPal to Restore Full Service Access in Ghana

August 2, 2025
Bank of Ghana

Financial Sector Assets up 34.6% in 2024 to GHS 525.59 Billion

August 2, 2025

Who we are?

NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World

NorvanReports is a unique data, business, and financial portal aimed at providing accurate, impartial reporting of business news on Ghana, Africa, and around the world from a truly independent reporting and analysis point of view.

© 2020 Norvanreports – credible news platform.
L: Hse #4 3rd Okle Link, Baatsonaa – Accra-Ghana T:+233-(0)26 451 1013 E: news@norvanreports.com info@norvanreports.com
All rights reserved we display professionalism at all stages of publications

No Result
View All Result
  • Home
  • Business
    • Agribusiness
    • Aviation
    • Energy
    • Insurance
    • Manufacturing
    • Real Estate
    • Maritime
    • Tourism
    • Transport
    • Banking & Finance
    • Trade
    • Markets
  • Economy
  • Reports
  • Technology
    • Cryptocurrency
    • Cyber-security
    • Social Media
    • Tech-guide
    • Telecom
  • Features
    • Interviews
    • Opinions
  • Lifestyle
    • Entertainment
    • Sports
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
NORVANREPORTS.COM | Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.