The Managing Director of the Agricultural Development Bank (ADB), Edward Ato Sarpong, has disclosed that the bank was technically insolvent when he assumed office in February 2025, with a cost-to-income ratio of 98 percent and non-performing loans (NPLs) exceeding 70 percent.
Speaking at the 2026 Jospong Leadership Conference, Mr Ato Sarpong gave a candid account of the dire financial condition of the state-owned bank and the intensive turnaround measures undertaken during his 11-month tenure.
“I inherited a bank with a cost-to-income ratio of 98%,” he told the audience.
“That means for every ten cedis the bank made, it spent nine cedis, eighty pesewas just feeding itself.”
He described the institution as deeply distressed, noting that its capital adequacy ratio was negative, effectively rendering the bank insolvent.
“The bank was basically insolvent, to put it in layman’s language. NPLs were in excess of 70 percent—loans that could not be collected. Everything was moving in the opposite direction,” he said.
Mr Ato Sarpong, a chartered accountant and business executive, admitted he initially hesitated to accept the appointment due to his lack of formal banking experience.
“I said I cannot run a bank because I’ve never been in banking before,” he recalled, adding that after consultation, he resolved to focus on leadership rather than technical banking operations.
According to him, the bank has since recorded a dramatic turnaround, citing several key achievements:
Cost-to-income ratio reduced from 98% to 57%
GH¢18 million in costs eliminated through contract reviews and renegotiations
Capital adequacy ratio improved from -3.17% to 17.5%
A turnaround from a GH¢225 million loss in 2024 to a GH¢325 million profit in 2025
“On my desk, I have eliminated 18 million Ghana cedis in cost—18 million in just 11 months,” he stressed.
Mr Ato Sarpong attributed the recovery to hands-on leadership, direct involvement in vendor negotiations, strict cost control, and a deliberate effort to change the mindset of the bank’s executive leadership.
He also addressed ADB’s placement under the Bank of Ghana’s Prompt Corrective Action (PCA) framework, which imposes operational restrictions on struggling banks. Rather than allowing it to stall progress, he said he chose to act decisively.
“I told my staff I had two options: to fold my arms because we were under PCA, or to make the decisions needed to be profitable and deal with the consequences later,” he said.
According to him, the turnaround was so significant that regulators later questioned why ADB remained under PCA.
“They asked, ‘Why are you still under PCA? You should write to us that you are okay,’” he revealed.
Mr Ato Sarpong concluded by emphasizing that leadership is measured by results, not titles, describing the transformation as a product of sustained effort and accountability.
“Leadership is not in the roles; it is in the results,” he said.
“In 11 months—just 11 months—we moved from near collapse to recovery. It has been work, work, work.”
