Shares of Agricultural Development Bank (ADB) has witnessed 77% increment since the bank was listed on the Ghana Stock Exchange (GSE).
The share price increased from GH¢3.83 at the end of December 2016 to GH¢5.28 currently.
Industry watchers attribute the rise to the strong financials posted by ADB for the first nine months of this year.
The bank commenced trading on the Bourse on December 12, 2016 at GH¢3 and inched up to GH¢3.35 a couple of days later before it plateaued at GH¢3.83 on December 30, 2016.
Since the publication of its first nine months’ performance, which produced positive returns on all key performance indicators, investors have turned their attention to the bank, and the positive results is expected to continue till the end of the year.
55.3% in net interest income
The bank’s net interest income saw a 55.3 per cent improvement from GH¢143.1 million in the third quarter of 2016 to GH¢232 million in the third quarter of 2017.
4,502% increment in profit before tax
After posting a loss of GH¢1.5 million in the first nine months of 2016, the bank’s robust turnaround strategy resulted in a profit before tax of GH¢66.3 million, representing a whopping 4502 per cent increment.
Loans and advances up 8.3%
Loans and advances moved up marginally by 8.3 per cent from GH¢1.1 billion to GH¢1.2 billion while the bank increased its investment in government securities by 35.7 per cent within the period under review from GH¢686.8 million to GH¢931.8 million.
Customer deposits up 26.7%
Customer deposits also increased by 26.7 per cent from GH¢1.9 billion to GH¢2.4 billion, with shareholders’ funds increasing by 51.5 per cent from GH¢331.9 million to GH¢502.7 million.
A market analyst believes that the share price could inch up if the bank continues to post more positive results.
“The bank was under financial stress for some time, but things are looking positive, hence their interest. If this trajectory continues, I wouldn’t be surprised if the share price keeps soaring,” the analyst said.