Shareholders of the Agric Development Bank (ADB) will not be paid dividend for the 2019 financial year.
Though the bank recorded a profit of ¢14.8 million in 2019, compared to ¢5.9 million in 2018, it declined to pay dividend, as a result of a negative income surplus on its balance sheet.
Board Chairman of the bank, Alex Bernasko, revealed this at the bank’s 33rd Annual General Meeting, saying, the bank was burdened with a negative income surplus of ¢188.8 million that occurred in 2016.
According to him, the development has been subjected to a regulation requirement by the Bank of Ghana that directs it to write off the accumulating operating losses before declaring dividends.
“The bank has made modest profits after tax since the 2017 financial year. Indeed, the financial performance is steadily improving and getting better.
“Members should note however that as at the end of December 31, 2016, the bank had a negative income surplus of ¢188.8 million.
“Regulation requires the bank to completely write-off accumulated operating losses from its normal operations before it pay declare dividends.
“The bank is thus constrained from recommending the declaration of dividends until the accumulated negative income surplus has been completely written off,” he said.
ADB showed some gains in its interest margin which improved from 55.4%t in the preceding year to 61.1% in 2019.
Retail deposit also increased by 31.2%, from ¢2.6 billion in 2018 to ¢3.4 billion in 2019.
This largely resulted in a 27% balance sheet growth and accounts for the 28 percent increase in gross loans from ¢1.5 billion in 2018 to ¢1.9 billion with the attendant improvement in the ratio of Non Performing Loans (NPLs).
Meanwhile, Managing Director of the Bank, Dr. John Kofi Mensah has revealed that the bank will intensify its e-commerce products and services.
According to him, this will see the bank to complete the migration from Magnetic Stripe Cards to a much more secured EMV Chip and Pin Cards.
This is part of the banks priority cards to ensure the enhancement of their Mobile App and USSD.
ADB’s virtual 33rd Annual General Meeting was in compliance with regulations set out for listed companies on the Ghana Stock Exchange (GSE) amidst the restrictions on public gathering due to Covid-19.
Meanwhile, Agricultural Development Bank Limited has been rebranded to the Agricultural Development Bank Public Limited Company.
The post No dividend for ADB shareholders for 2019 financial year appeared first on MyJoyOnline.com.
Source: JoyOnline