2011 ADB Annual Report.pdf

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Annual Report & Financial Statements 2011

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Annual Reports & Financial Statements - 2011 »

Page 1

Annual Report &

Financial Statements

2011

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« 2011 - Annual Reports & Financial Statements

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Corporate Information – 3

ProfileofDirectors – 5

FinancialHighlights – 6

Chairman’sStatement – 7

ProfileofExecutiveManagement – 10

ManagingDirector’sReviewofOperations – 11

ReportoftheDirectorstotheMembersof AgriculturalDevelopmentBank – 13

CorporateGovernance – 15

IndependentAuditors’Report – 18

ConsolidatedStatementof ComprehensiveIncomeStatement – 20

ConsolidatedStatementofFinancialPosition – 22

ConsolidatedStatementofChangesinEquity – 23

ConsolidatedStatementofCashflows – 25

NotestotheFinancialStatements – 26

ADBBranchNetwork – 74

CorrespondentBanks – 79

Contents

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BOARD OF DIRECTORS AlhajiIbrahimAdam - ChairmanMr.StephenKpordzih - ManagingDirectorMr.PaulAgyiri - ExecutiveDirectorDr.S.K.Dapaah - Non-ExecutiveDirectorDr.JohnsonAsiama - Non-ExecutiveDirectorMs.NancyAmpofo - Non-ExecutiveDirectorMajorM.S.Tara - Non-ExecutiveDirectorMrs.EstherKumado - Non-ExecutiveDirector

BOARD COMMITTEEAudit & Compliance Committee Dr.S.K.Dapaah - Chairman

MajorM.S.Tara - MemberDr.JohnsonAsiama - MemberMrs.EstherKumado - Member

Governance & Risk Management Dr.JohnsonAsiama - ChairmanDr.S.K.Dapaah - MemberMrs.EstherKumado - MemberMs.NancyAmpofo - Member

Loans and Advances Committee Dr.JohnsonAsiama - ChairmanMrs.EstherKumado - MemberMajorM.S.Tara - MemberMr.StephenKpordzih - MemberMr.PaulAgyiri - Member

Human Resources AlhajiIbrahimAdam - ChairmanMr.StephenKpordzih - MemberMrs.EstherKumado - MemberMs.NancyAmpofo - Member

COMPANY SECRETARY Mr.JamesK.AgbedorADBHouse,37IndependenceAvenueAccra

REGISTERED OFFICE ADBHouse,37IndpendenceAvenuePOBox4191Accra

AUDITORS KPMGCharteredAccountants13YiyiwaDrive,AbelenkpePOBoxGP242Accra

Board of Directors, Officials and Registered Office

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Board of Directors

1

3

9

2AlhajiIbrahimAdam

Mr.PaulAgyiri

8MajorM.S.Tara

Mr.JamesK.Agbedor

Mr.StephenKpordzih

5Dr.S.K.Dapaah

4Ms.NancyAmpofo

7Mrs.EstherKumado

6Dr.JohnsonAsiama

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Profile of Directors

1- Ibrahim ADAM (Chairman)Alhaji IbrahimAdamholdsaB.Sc (Hons)AgricDegree fromtheKwameNkrumahUniversity ofScience andTechnology.He has attended several short courses on rice production,administration and management. The list includes WARDA(Monrovia), IITA (Ibadan, Nigeria), Ghana Institute ofManagementandPublicAdministration (GIMPA).OthersareEDI (Maastricht)andFeldafing (Germany).Mr.Adamservedingovernmentforseveralyearsbetween1984and2001.HewasPNDCUnder-SecretaryforAgriculture(NorthernRegion)between1984and1985beforebecomingthePNDCDeputySecretary for Agriculture (Crops). He was promoted to thePNDCSecretaryforAgriculturein1992.AtthebeginningoftheFourthRepublicin1993,hefirstservedastheMinisterofFoodandAgricultureuntil1996whenhewasmadetheMinisterofTrade.Mr.AdamiscurrentlytheCEOofBradaVenturesandwasappointedtheChairmanoftheBoardon26thJune2009.

2 - Stephen KPORDZIH (Executive Director)Mr. Kpordzih holds an MBA (Finance) from University ofLeicester,UK,andaPost-GraduateCertificate-StrategicBankManagementfromOdenseBusinessSchool,Denmark.Hehasto his record immense banking experience and consultancyassignments with leading banks, including preparation of apaperonFinancingRuralAgricultureinGhanaaspartoftheGovernment’sCompactProgrammeforaccessingtheUS$547million Millennium Challenge Account. He also developedfeasibility reports for theestablishmentofnon-bankfinancialinstitutions.One-timelecturerinFinanceofInternationalTradeat the Chartered Institute of Bankers, Ghana, a resourceperson in Treasury Management at the Ghana BankingCollege,andanHonouredMemberoftheInternationalWho’sWhoofProfessionalsforhisachievementsinandcontributiontobanking,Mr.KpordzihtookofficeastheManagingDirectoroftheBankinAugust2009.

3 - Paul O. AGYIRI (Executive Director)Mr.AgyiriholdsaBachelorLawsDegreefromtheUniversityofGhana,LegonandaProfessionalQualifyingCertificate inLawfromtheGhanaSchoolofLaw.HeservedintheAttorney-General’sDepartmentbetween1978and1984.Between1984and 1991, he engaged in private consultancy practice withMaxwell&MaxwellLawOffices,LiberiaandtookthepositionofDirectorofLegalServicesoftheWestAfricanExaminationsCouncil, Head Office. He joined the Bank as Chief LegalAdvisorin1991.BetweenJune2003andJuly2005,Mr.AgyiriwassecondedtotheMinistryofFinance&EconomicPlanningasChiefDirector,returningtotheBanktoresumehispositionasSolicitor.

4 - Nancy Dakwa AMPOFO (Non-Executive Director)ANotaryPublic,SolicitorandBarrister,Ms.AmpofograduatedfromtheUniversityofGhanain1979withaB.A.(Combined)Degree in Law (with Political Science). She obtained aProfessionalLawQualifyingCertificatein1981fromtheGhanaLawSchoolandwascalledtotheGhanaBaron20thNovember1981.Ms.Ampofohashadatrackrecordandexpertiseinlegalconsultancy acquired throughundertaking legalwork for thepublic and private sector institutions, as well as individualsandmultinationals.Ms.Ampofo founded her own legal firm,N.D.AmpofoAssociatesin2000andhasbeenofferinglegalconsultancyservicestoboth localandinternationalclients inallareasofthelaw.ShewasappointedasDirectoroftheBankinJune2009.

5 - Dr. Samuel K. DAPAAH (Non-Executive Director)Dr. Dapaah has had a long professional experience inAgricultural Policy and Public Administration, Teaching,ResearchandManagement.HegraduatedfromtheUniversityof Ghana, Legon with a B.Sc. (Hons)Agriculture Degree inJune1972andproceededtotheUniversityofGuelph,Canadawhere he graduated with an M.Sc. Agricultural EconomicsDegree in February 1975 and Ph.D.Agricultural EconomicsDegree in February 1982. He returned to the Universityof Ghana, Legon as a Research Fellow at the Institute ofStatistical, Social and Economic Research (ISSER) andLecturer at the Department of Economics and DepartmentofAgriculturalEconomics.Dr.Dapaahserved in theMinistryofFoodandAgriculture,first,asDirectorofPolicy,Planning,Monitoring and Evaluation between 1986 and 1992, and asChiefTechnicalAdvisorandChiefDirectorbetween1993and2001.Amember of the Board between 1993 and 2001, Dr.DapaahwasreappointedasDirectorinJune2009.

6 - Dr. Johnson P. ASIAMAH (Non-Executive Director)Dr. Asiamah is the Chief Manager, Research Departmentof the Bank of Ghana. He holds a B.A. (Hons) Degree inEconomicswithStatisticsandanM.Phil.(Economics)issuedby the University of Ghana in 1993 and 1996 respectively,and a Ph.D. (Economics) Degree from the University ofSouthampton,England,UnitedKingdomin2005.Withahostofpublicationsandconferencepresentationstohisrecord,Dr.AsiamahwasappointedtotheBoardoftheBankinJune2009.

7 - Mrs. Esther KUMADO (Non-Executive Director)MrsEstherKumadoholdsaBA(Hons)DegreeandaQualifyingCertificate in Law (QCL) from the University of Ghana, anda Professional Diploma in Law issued by the Ghana LawSchool.She isamemberof theGhanaBarAssociationandInternationalBarAssociation, aswell asbeingaMemberoftheGoverningBodyoftheFinancialIntelligenceCentre(FIC).MrsKumadoiscurrentlytheHeadoftheLegalDepartmentofBankofGhanaandrepresentstheFinancialInvestmentTrust(asubsidiaryoftheBankofGhana)ontheBoard.

8 - Major Mahama S. TARA (Rtd) (Non-Executive Director)Major Tara (Rtd), a Chartered Management Accountant(ACMA)alsoholdsaBScAdministration(AccountingOption)Degree from theUniversityofGhana.His richexperience inthepublicsectorhasincludedservingasDirectorofFinanceand Administration of the Ghana Tourist DevelopmentCompanyLtd.,DirectorofFinanceofthethenArchitecturalandEngineeringServicesCorporation,andaDeputyController&Accountant-General.At theMinistry of Finance & EconomicPlanning,MajorTara(Rtd)hadpreviouslyservedat intervalsas Director of Budgets and Acting Chief Director. Amonghis achievements, he headed the Technical Team that re-organizedtheBudgetingandPublicExpenditureManagementSystemwithintheGovernmentmachineryandintroducedtheMediumTermExpenditureFramework (MTEF)as themodelforGovernmentalAccounting.HewasappointedtotheBoardinJune2009.

9 - James K. AGBEDOR (Secretary)Mr. Agbedor holds the Bachelor-of-Laws Degree from theUniversityofGhanaandaProfessionalLawCertificate fromtheGhanaSchoolofLaw.He joined theBank in1985asaLegal Officer and is currently the Solicitor & Head-GeneralCounseloftheBank.HewasappointedSecretarytotheBoardin2006.

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The Group The Bank2011 2010 2011 2010

GH¢’000 GH¢’000 GH¢’000 GH¢’000At 31 December

Totalassets 1,213,671 968,199 1,205,757 964,503Loansandadvancestocustomers(net) 678,747 576,987 678,747 576,987Customerdeposits 827,718 536,079 827,718 536,079Shareholders’equity 181,707 106,353 176,164 106,279

For the year ended 31 December

Profitbeforetax 51,113 12,763 45,903 12,265Profitaftertax 48,557 12,118 43,608 11,652

Dividendpershare(Ghanacedis) - 0.39 - 0.39Earningspershare(Ghanacedis):-Basic 1.942 0.485 1.744 0.466-Diluted 1.942 0.485 1.744 0.466Returnonaverageequity(%) 33.7 10.6 30.9 10.2Returnonaverageassets(%) 4.5 1.4 4.0 1.4

At 31 December

Numberofstaff 1,345 1,168 1,345 1,168Numberofbranches 76 65 76 65

Financial Highlights

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Itismygreatestpleasuretopresenttoyou,theAnnualReportandthefinancialresultsofyourBankfortheyearended31stDecember2011.

1. World Economy

Globaloutputfor2011showedgrowthof3.8%comparedto5.2%recordedin2010perIMFestimates.Thiswaspoweredby1.6%growthintheadvancedeconomieswhiletheemergingeconomiesandSub-SaharanAfricarecorded6.2%and4.9%respectively.Developedcountries’economiesareexpected toexpandbyonly1.6%duetoshakyconsumerconfidence,fiscaltighteningandaformidabledebtoverhangespeciallyinEurope.Thismarkeda decline in the 2010economic growth performances of 3.2% for the advancedeconomiesandtherespective7.3%and5.3%forboththeemergingeconomiesandSub-SaharanAfrica.

Crudeoilpricebegantheyear2011atUSD92perbarrelandwasgenerallystablebutpeakedatUSD124perbarrelinMay2011beforerecedingtoUSD103perbarrelattheendof2011.

GoldpricerecordedsteadyincreasesfromUSD1,386perounceattheendof2010tothehighestofUSD1,900perounceinSeptember2011.However,itendedtheyearatUSD1,599perounce.CocoapriceremainedveryhighinthefirsthalfoftheyearandrosefromUSD2,951pertonattheendof2010toUSD3,654pertoninMarch2011.MostofthegainswerehowevererodedastheyearendedatthepriceofUSD2,101perton.

2. Domestic Economy

ProvisionalrealGDPgrowthwas13.6%andwasbelowtheprojectedtargetof14.4%for2011.Thiswashowever higher than the real GDP growth of 7.7% recorded in 2010. Government’s fiscal stability andconsolidationpolicieswereoncourse.Fiscaldeficit rose toGH¢2.1billioncompared toGH¢1.7billion in2010butwaswithinthebudgeteddeficitofGH¢2.4billion.

ThecurrentaccountdeficitwidenedfromUSD2.1billioninDecember2010toUSD3.1billioninDecember2011.This led toadecline in theoverall balanceof payments surplus fromUSD1.5billion toUSD546.5million.However,thegrossexternalreservespositionincreasedfromUSD4.7billionin2010toUSD5.4billioninDecember2011.

TheCedi depreciatedagainst themajor currencies in 2011 showingadeclineof 8.3%,7.9%and5.3%respectivelyfortheUSD,GBPandtheEURO.Inflationrosemarginallyto9.1%inFebruary2011buteasedthereafterandgenerallyremainedasingledigitendingtheyearat8.6%.Theyear2011openedwiththeBankofGhanaPrimeRateat13.5%.Twosuccessivecutsintheyearbroughttherateto12.5%attheendoftheyear2011.

3. Financial Performance

BoththeexternalanddomesticeconomicconditionsoutlinedabovegreatlyaffectedtheperformanceoftheBankin2011.

NetProfitaftertheNationalStabilizationLevyfor2011wasGH¢48.6millionandwasover300%abovetherestatedamountofGH¢12.1millionrecordedfor2010.ProfitwasrestatedtoenabletheBankprudentlymakeprovisionforcertainlongoutstandingiteminitsbooksdatingbackto2002andtoprovideitwithacleanbillofhealthtopursueitsoperations.TheBankwrotebackprovisionstotalingGH¢7.6millionasaresultoftheimprovingconditionsofitscreditportfolio.WewillcontinuetoprudentlyreviewthecreditportfoliotopreventpotentialdeteriorationintheassetsandthenegativeconsequencesofitsimpactonprofitabilityandstrengthoftheBank’sbalancesheet. Thebalancesheetshowedsignificantgrowthinthefinancialyear2011.Totalassetsgrewby25.4%fromtherestatedamountofGH¢968.2millionattheendofDecember2010toGH¢1,213.7millionatyearend

Chairman’s Statement – 2011

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December2011.ThiswasfundedmainlyfromtheincreaseindepositsmobilizedfromGH¢536.1milliontoGH¢827.7million-agrowthof54.4%.Shareholders’Fundsalsowentupby70.9%fromGH¢106.4millionattheendofDecember2010toGH¢181.7millionattheendofDecember2011.

4. Financing to Agriculture Sector

TheBank increased itscreditdisbursements tovariousproductiveagriculturalprojects totalingGH¢141.7million,inexcessoftheGH¢100.1millionrecordedin2010.Thisrepresented41.6%increase.Financingofagro-processingwaspredominantasitamountedtoGH¢84.5million.TotalcredittotheagriculturesectorattheendofDecember2011stoodatGH¢190.8millionandthisconstituted27.4%ofthetotalcreditportfolio.ThismarkedanincreaseofGH¢50.3millionor35.8%intheDecember2010positionofGH¢140.5million.

5. Update on Strategic Plan 2010 – 2012

TheBanksetitsvisiontobeamongthetop3performingbanksinGhanaby2012,balancingmarketorientationwithadevelopment focusonagricultureandmore.Key initiativesso far implemented included improvingservicedelivery, rollingoutnewproductsandservices,and introducingnewchannels forsales.Theyear2011sawfurtherexpansioninourbranchnetworkandconsolidationofourearlierstrategicinitiatives.WesuccessfullyimplementedournewIToperatingsystemwhichhasenabledtheBanktocopewithexpansionofserviceandproductdeliveryandenhanceditscompetitivepositionintheGhanaianbankingindustry.

6. Outlook for 2012

We look forward to a promisingbut challengingprospects as theworld economy is expected to registeragrowthof3.3%while thedomesticGhanaianeconomy faceschallengesofanelectionyear.However,weremainoptimistic thatGovernmentspending inkeysectorsof theeconomyespeciallyAgricultureandinfrastructure,willprovidethenecessaryexpansionineconomicactivitieswhichtheBankcantakeadvantageofandexpanditsbusinessoperations. 7. Conclusion

I take the opportunity on behalf of the Board to congratulate the shareholders and customers for theircontinuedloyaltyandsupportduringthepastyear.IalsothankManagementandstafffortheirhardworkandcommitmenttodutyandwishallstakeholdersasuccessfulYear2012.

ALHAJI IBRAHIM ADAMBOARD CHAIRMAN

Chairman’s Statement (Cont’d)

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Executive Management

Mr.StephenKpordzihManagingDirector

Abdul-SamedIddrisuExecutiveHead-TransactionBankingandTechnology

BernardAppiahGyebiExecutiveHead-CreditRiskManagement

JamesBaidooSagoeExecutiveHead-Finance&Planning

Mr.PaulAgyiriExecutiveDirector

AdamSulleyExecutiveHead-RetailBanking

EdwardIanArmah-MensahExecutiveHead-CorporateBanking

S.N.S.AbbeyExecutiveHead-Operations

JamesK.AgbedorBoardSecretaryandGeneralCounsel

AkwelleyAdoleyBulleyExecutiveHead-HumanResources

GeorgeBaahDanquahTreasurer

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Mr. Stephen Kpordzih – Managing DirectorAppointed Managing Director in August 2009, heholds anMBA (Finance) fromUniversity of Leicester,UK, andaPost-GraduateCertificate -StrategicBankManagementfromOdenseBusinessSchool,Denmark.His banking career spanned BBG, GCB and StanbicBank. One-time lecturer in Finance of InternationalTrade at the Chartered Institute of Bankers, Ghana,andaresourcepersoninTreasuryManagementattheGhana BankingCollege, he is anHonouredMemberoftheInternationalWho’sWhoofProfessionalsforhisachievementsinandcontributiontobanking.

Mr. Paul Agyiri - Executive DirectorHeholdsaBachelorofLawsDegreefromtheUniversityof Ghana, Legon and a Professional QualifyingCertificateinLawfromtheGhanaSchoolofLaw.Afterconsiderable legal practice in the Attorney-General’sDepartment and WAEC, and private consultancypracticeinLiberia,hefirstjoinedADBin1991asChiefLegalAdvisor.HeiscurrentlytheExecutiveDirectoroftheBank.

James K. Agbedor -- Board Secretary and General CounselHeholdsaBachelor-of-LawsDegreefromtheUniversityofGhanaandaProfessionalLawCertificate fromtheGhanaSchoolofLaw.He joinedtheBank in1985asaLegalOfficerandworkeduptheladderuntilhewasappointedSecretarytotheBoardin2006.HeisalsotheGeneralCounseloftheBank.

Abdul-Samed Iddrisu - Executive Head-Transaction Banking and TechnologyHewaspreviouslyDirectorofBusinessSolutionsandthenDirectorofTransactionBankingatFidelityBank.Prior to that,hewasHeadof ITatStanbicBankandFirst Atlantic Merchant Bank, and Systems Analyst/Programmer of the Volta RiverAuthority. He holds aBachelorofSciencedegreeinComputerSciencefromtheUniversityofScienceandTechnology.

Adam Sulley - Executive Head-Retail Banking He holds a B.Sc. in Industrial Management from theUniversity of Petroleum and Minerals (SaudiArabia),M.Sc. in International Business from South BankUniversity (UK), Dip M and MCIM of the CharteredInstitute of Marketing (UK). He was the immediatepastChairmanof theChartered InstituteofMarketing(UK),GhanaBranchandalsoaformermemberoftheGoverningCouncilofCIMG.HeisapanelmemberoftheNationalAccreditationBoard(NAB)andanexternalexaminer to the National Board for Polytechnic andTechnicalExaminationCouncil(NABPTEX).

Akwelley Adoley Bulley – Executive Head-Human Resources She joinedADB fromMillicomGhana Limited (TIGO)

whereshewastheHeadofHumanResources.Priortothat,shewastheHumanResourceManageratHolidayInn,AccraAirport, and Employee Relations ManagerandlaterHumanResourceManagerofCadburyGhanaLimited. She holds an MA Degree in EmploymentStudiesfromLondonMetropolitanUniversityandaBADegree inPsychologywithLinguistics fromUniversityofGhana.

Bernard Appiah Gyebi - Executive Head-Credit Risk ManagementHejoinedADBfromStanbicBankGhanaLimitedwherehewas theHead ofCredit. Earlier atBarclaysBank,he served in various capacities as Corporate CreditManager,ComplianceOfficer/ExecutiveAssistanttotheManagingDirector,andHeadofCorporateCredit.

Edward Ian Armah-Mensah - Executive Head-Corporate Banking HejoinedADBfromBarclaysBankGhanaLimitedwherehe was Head of SME (MediumUnit). He had earlierworked at Stanbic Bank as an Account RelationshipManager and Credit andMarketingManager at NDKFinancial Services Limited. He holds an ExecutiveMasters in Business Administration (Finance Option)andaBachelorofScienceinBusinessAdministration.

George Baah-Danquah - TreasurerHejoinedADBfromAccessBankGhanaLimitedwherehe was Head of Treasury. Prior to that, he occupiedvariouspositionsintheFinanceDepartment,TreasuryDepartment, and the Global Markets Department ofStanbicBank.HeholdsaMastersDegreeinBusinessAdministrationandaBachelorofScience inBusinessAdministration.

James Baidoo Sagoe - Executive Head-Finance & Planning He joined ADB from Merchant Bank Ghana Limitedwhere he was the Corporate Development AnalystandFinancialController.EarlieratVALCO,heservedasPlanning&FinancialAnalystandChiefAccountant.Mr. Sagoe is a Chartered Accountant and holds anExecutive Masters in Business Administration fromUniversityofGhanaBusinessSchool.

S. N. S. Abbey – Executive Head-OperationsHe holds BSc (Hons) Degree inAgriculture from theUniversityofGhana.HejoinedADBin1977andhasoccupiedvariouspositions.HewasmadeCo-ManageroftheBusinessBluePrintandtheMicroBankerbankingsoftwareimplementationprojects,andProjectManagerfor the Flexcube banking application implementationproject.

Profile Of Executive Management

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Introduction

TheAgriculturalDevelopmentBankconsolidatedtheimplementationofitskeystrategicinitiativesduringyear2011.Thoughtheyearwaschallenging,theBankmadesomeimpressivegainsandputtheachievementsofitsthreeyearstrategicobjectivesinfocus.

Strategic Initiatives

TheBankcontinuedthepursuitofitsagendaofpositioningitselfproperlyintheGhanaianbankingindustry.Thefollowingkeystrategieswereimplemented:increasedmobilizationandexpansionindeposits,openingofnewbranches,installationofanewFlexcubeUBSSystemandimprovementinstaffconditionsofservice.

Business Growth

Totalassetsgrewby25.4%fromGH¢968.2millionin2010toGH¢1,213.7millioninDecember2011.Thiswasmainlyonaccountof increases in loansandadvancesand investment insecurities.Total loansandadvances (net) recorded an increase of 17.6% fromGH¢577.0million at the end of December 2010 toGH¢678.8million.Thisconstituted55.9%oftotalassets.Similarly,investmentinGovernmentsecuritiesroseby26.3%fromGH¢165.9million toGH¢209.5million.Theassetswere fundedmainly fromdepositsandborrowings.Totaldepositsgrewby54.4%fromGH¢536.1millionattheendofDecember2010toGH¢827.7millionattheendof2011.Thisconstituted80.2%oftotalliabilities.However,borrowingswhichformed15.6%oftotalliabilitiesdeclinedby27.1%fromGH¢221.4milliontoGH¢161.4million.

Branch Expansion

Thebankcontinueditsbranchnetworkexpansionprogrammeduringtheyear.TennewbrancheswereopenedandtheseincludedNima,DanquahCircle,KasoainAccra,AgonaNkwanta,Bole,Buipe,TamaleKaladan,Tumu,KadeandAsiakwa.TheseincreasedtheBank’sbranchnetworktoseventysixattheendoftheyear2011.Additionally,threeExecutiveBankingUnitsweresetuponeeachatAccra,KumasiandTamale.

Funding for Agriculture and Allied Sectors

Credit to the agriculture and allied sectors amounted toGH¢190.8million and represented 27.4%shareof thecreditportfolioasat theendof2011asagainst the29.0%recorded inDecember2010.TotalnewlendingtothesectoramountedtoGH¢141.7millionin2011.Thisshowedanincreaseof41.6%inthetotaldisbursementsofGH¢100.1millionrecordedin2010.

Agro-processing dominated the credit disbursements as the sub-sector received an amount ofGH¢84.5millioncomparedtoGH¢72.3millionin2010.Thisrepresented59.6%ofthetotalnewlendingtotheagriculturesector.ThepiechartbelowgivesapictorialviewofthesectoralanalysisoftheBank’screditportfolioattheendofDecember2011.

Review Of 2011 Operations By Managing Director

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Profit Performance

TheBankrecordedasignificantimprovementinitsNetProfitafterNationalStabilizationLevyofGH¢48.6millionfor2011asagainsttherestatedprofitofGH¢12.1millionin2010,showinganincreaseofover300%.This translates intoReturn onAverageAssets andReturn onAverageEquity ratios of 4.5%and 33.7%respectively,comparedto1.4%and10.6%respectivelyfortherestatedprofitof2010.

Strategic Plan 2010-2012

2011markedthesecondyearoftheimplementationoftheBank’sstrategicplanandsawtheconsolidationofoperationsoftheBusinessUnits.TheBankinstalledanewFlexcubeUBSoperatingsystemtoimproveupontheefficiencyofitsbusinessoperationsandexpandservicedeliverytocustomers.TheBankremainscommittedtoitskeystrategicobjectiveofbeingamongthetopthreeperformingbanksinthebankingindustry.Theperformanceof theBank in2011hasbeenvery impressiveandweareoncourse toachievingourstrategicobjectives.

Corporate Social Responsibility

TheBankescalated itsCorporateSocialResponsibilityengagementsandspenta totalofGH¢1,295,518in2011whichshowedasignificantincreaseoverthe2010amountofGH¢605,725.ThiswasexclusiveofanamountofGH¢98,000sponsorship forour trademarkNationalBestFarmerAward.Wemadeseveralotherdonationstocharityduringtheyearincludingdonationofcomputerstothesecurityservicesandsomeselectededucationalinstitutions.

Outlook for Year 2012

Wewill continue the implementationof the lastphaseofourstrategicplanandensure thatall themajorstrategicactionstepsarefullyimplemented.WeexpectasteadybusinessandincomegrowthinspiteofthepotentialchallengestotheeconomyofGhanainanelectionyear.TheBankisalsokeentofollowthroughthenecessaryprocessestoenableitlistontheGhanaStockExchange. Conclusion

IwishtoexpressmyappreciationtotheBoardandtheshareholdersfortheircontinuedsupporttotheBankduringthepastyear.Ialsowishtothankourloyalanddedicatedcustomersforpatronizingourservices.IcongratulatethehardworkingstaffoftheBankfortheirgoodeffort.

STEPHEN KPORDZIHMANAGING DIRECTOR

Review Of 2011 Operations By Managing Director (Cont’d)

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TheDirectorssubmittheirreporttogetherwiththeconsolidatedfinancialstatementsoftheBankfortheyearended31December2011.

DIRECTORS’ RESPONSIBILITY STATEMENT

The Bank’s Directors are responsible for the preparation and fair presentation of these consolidatedfinancialstatements inaccordancewith InternationalFinancialReportingStandardsand in themannerrequiredbytheAgriculturalDevelopmentBankAct1965(Act286)asamendedbyNLCD182of1967andAct352of1970andtheBankingAct,2004(Act673)asamendedbytheBanking(Amendment)Act,2007(Act738)andforsuchinternalcontrolastheDirectorsdetermineisnecessarytoenablethepreparationofconsolidatedfinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror.

TheDirectorshavemadeanassessmentoftheabilityoftheBankanditssubsidiariestocontinueasgoingconcernsandhavenoreasontobelieveanyoftheentitieswillnotbeagoingconcernintheyearahead.

TheDirectorsconsiderthestateoftheGroup’saffairstobesatisfactory.

PRINCIPAL ACTIVITIES

TheprincipalactivitiescarriedoutbytheBankduringtheyearunderreviewwerewithinthelimitspermittedbyitsregulations.

AUDITORS

TheAuditorsMessrsKPMGwereappointedonMarch5,2011toreplaceMessrsDeloitteandTouchewhoresignedtheirpositionasauditorsonMarch4,2011.ThiswasincompliancewiththedirectivefromtheBankofGhanarequiringallbankswhoseexternalauditorshavebeenatpostformorethanfiveyearstotakestepstoreplacethem.

DIRECTORS

Thepresentlistofmembersoftheboardisshownonpage3.

SUBSIDIARIES AND ASSOCIATE

TheBankhasthefollowingwhollyownedsubsidiaries,whichareincorporatedinGhanaandprovidethefollowingservices:• ADBPropertiesLimited - RealEstate

TheBankholdssignificantinterestinthefollowingcompanies:GlobalAccessSavingsandLoansLimited - SavingsandLoansAgricareLimited - AgroProcessingActivityVentureFinanceCompanyLimited - VentureCapital

FINANCIAL STATEMENTS AND DIVIDEND

TheBank’sresultsfortheyeararesetoutintheattachedfinancialstatements,highlightsofwhichareasfollows:

REPORT OF THE DIRECTORSTO THE MEMBERS OF AGRICULTURAL DEVELOPMENT BANK

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In accordance with section 29(c) of the BankingAct, 2004 (Act 673) as amended, an amount of GH¢21,804,063(2010:GH¢2,912,901)wastransferredto thestatutoryreservefundfromthe incomesurplusaccountbringingthecumulativebalanceonthestatutoryreservefundattheyearendtoGH¢52,076,405(2010:GH¢30,272,342).

RESTATEMENT OF PRIOR YEAR FINANCIAL STATEMENTS

Certaintransactions/balancesdatingbackanumberofyearshavebeenoutstandingintheBank’srecords.Effortshavebeenmadebymanagement in thepast to investigateandcorrect this.Adecisionwastakenduringthisyeartoprovideforthosewhichhavebeenlongoutstanding.

Suchtransactions/balanceshavebeencorrectedretrospectivelyandreflectedinthefinancialstatementsoftheprioryear.Detailsareshowninnote33ofthefinancialstatements.

APPROVAL OF THE FINANCIAL STATEMENTS

Thefinancialstatementsof theBankwereapprovedby theBoardofDirectorson29thMarch,2012andsignedontheirbehalfby:

…………………………….. ……………………………….CHAIRMAN MANAGINGDIRECTOR

…………………………… …………………………….. ……………………………….DIRECTOR EXECUTIVEHEAD-FINANCE&PLANNING SECRETARY

Restated2011 2010

GH¢’000 GH¢’000Profitaftertax(attributabletoequityholders) 48,557 12,147towhichisaddedthebalancebroughtforwardonincomesurplusaccount 3,685 (6,567)

--------- ----------52,242 5,580

outofwhichistransferredtothestatutoryreservefundinaccordancewiththeBankingActanamountof (21,804) (2,913)

transfersin/outofthecreditriskreserveof (8,299) -

transferstostatedcapital (25,000) -

Othermovements;

disposalofsubsidiary 521 -

surpluswrittenoffduetodepreciation 231 1,018

prioryearadjustments (736) -

disposalofproperty,plantandequipment 12,374 ---------- ---------

(42,713) (1,895)-------- ---------

leavingabalancetobecarriedforwardof 9,529 3,685===== =====

REPORT OF THE DIRECTORSTO THE MEMBERS OF AGRICULTURAL DEVELOPMENT BANK (CONT’D)

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Commitment to Corporate Governance

AgriculturalDevelopmentBankanditssubsidiariesoperateaccordingtotheBaselCommitteestandardsoncorporategovernance,whichconstituteinternationalbestpracticeinthisarea.

ThekeyguidingprinciplesoftheGroup’sgovernancepracticesare:

(i) Goodcorporategovernanceenhancesshareholdervalue

(ii) The respective roles of shareholders, Board of Directors and management in the governancearchitectureshouldbeclearlydefined

(iii) The Board of Directors should have majority membership of independent directors, definedbroadlyasdirectorswhoarenotemployedbytheGrouporcompany,orwhoarenotaffiliatedwithorganizationswithsignificantfinancialdealingswiththeGroup.

These principles have been articulated in a number of corporate documents, including the Bank’sregulations,rulesofproceduresforBoards,acodeofconductforDirectorsandrulesofbusinessethicsforstaff.

The Board of Directors

TheBoardisresponsibleforsettingtheinstitution’sstrategicdirection,leadingandcontrollingtheinstitutionandmonitoringactivitiesofexecutivemanagement.

Asof 31December 2011, theBoard ofDirectors ofAgriculturalDevelopmentBank consistedof eight(8)membersmadeupofanindependentNon-executiveChairman,6(six)Non-executiveDirectors,andtwo(2)ExecutiveDirectors. Theseboardmembershavewideexperienceand in-depthknowledge inmanagement,industryandthefinancialandcapitalmarkets,whichenablethemmakeinformeddecisionsandvaluablecontributionstotheGroup’sprogress.TheBoardmetthirteentimesduringtheyear.

TheBoardhasdelegatedvariousaspectsofitsworktotheGovernanceandRiskManagement,AuditandCompliance,LoansandAdvances,HumanResourceCommittees.

TheBoard has adopted standard evaluation tools that help assess the performance of theBoard, itscommitteesandindividualmembersonanannualbasis.

Governance and Risk Management Committee

ThiscommitteeischairedbyDr.JohnsonAsiamaanditsmembersarelistedonpagethreeofthisFinancialStatement.

Theroleofthecommitteeinclude:

1. ThereviewallriskstowhichtheBankisexposed,assessfromtimetotimetheirrelativeimportanceandevaluatewhethertheresourcesandcontrolsdesignedtomanageeachriskareproportionatetothequantumofriskinvolved:

2. Totheextentthatmanagementacceptsresidualrisk,becausetheresourcesrequiredtoreduceitfurtherareconsideredtobedisproportionate,theCommitteewilldeterminewhetheritiswithintheparameterssetbytheBoard.TheriskparameterssetbytheBoardwillgenerallybedefinedinterms

Corporate Governance

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ofaproportionoftheBank’scapitalorprofitsthatmaybeatriskoflossintheworstcaseifariskcrystallizes.TheCommitteewilltakeintoaccounttheconnectivityofrisks.

3. Reviewofriskwithafrequencythat it judgestobeproportionateto theirmateriality to theBankandshallpayparticularattentiontonewrisksarisingfromchangesintheBank’sbusinessstrategyand thosearising from thewider current commercial, economic andpolitical environment. TheCommitteeshallreviewthecomprehensivenessofrecordofrisksfromtimetotimeandshallupdateitwhereappropriate.

4. Consideringprior to implementation,all newproducts, significantchanges in thebalanceof thebusinessoftheBankorscaleofitsoperationsinanyarea.Itshallalsoconsiderallproposedchangestokeysystemsandoperationalcontrols,themanagementstructureandkeyresponsibilitiesoftheseniormanagementteam.

5. AssistingmanagementintherecognitionofrisksandalsotoensurethattheBoardismadeawareofchangesintheriskprofile.

- Counterpartylimits- Currency,maturityandinterestratemismatches- The external environment, including country risk for any country where the bank has a

significantexposure- Businessstrategyandcompetition- Operationalrisk,includingvulnerabilitytofraud,humanresourcesandbusinesscontinuity- Legal,complianceandreputationalrisk

Theannual reviewof its termsof referenceandmodusoperandiandmakeany recommendations forchangesthatitconsidersappropriatetotheBoard.

Audit and Compliance Committee


1. AnnuallyrecommendingtotheBoard&AGM,theappointmentoftheExternalAuditor,theauditfeeandtoadvisetheBoardonanyquestionsofresignationordismissaloftheExternalAuditors.

2. TokeepunderreviewtheBank’spolicyonnonauditservicesprovidedbytheExternalAuditorsandrecommendthistotheBoardhavingdueregardtoensuringthattheprovisionofsuchservicesdoesnotimpairtheExternalAuditor’sindependenceorobjectivity.

3. DiscussingwiththeExternalAuditorsbeforetheirauditcommences,thenatureandscopeoftheaudit.

4. Discussinganyissuesarisingfromtheinterimorfinalaudits,andanymatterstheExternalAuditorsmaywishtoraiseandtoreportonsuchmattersto-theBoard.

Loans and Advances Committee


1. SettingandreviewinglendinglimitsfortheCreditCommitteefromtimetotime;2. ConsideringandapprovingcreditexposureswhichexceedtheapprovallimitoftheCreditCommittee;

Corporate Governance (Cont’d)

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3. Consideringandapprovingfacilitieswhereamemberofmanagement,adirector,ashareholderhasaninterestintheborrower;

4. Consideringandapprovinginter-banklending5. ConsideringandapprovingfacilitiesreferredtoitbytheCreditCommittee

Human Resource Committee


1. ProposingandmakingrecommendationsonHumanResourceissuesandmattersrelatingtotermsandappointmentsofSeniorManagement.

Code of Conduct

ManagementhascommunicatedprinciplesintheGroup’sCodeofConducttoitsemployeestoprovideguidanceinthedischargeoftheirduties.ThiscodesetsthestandardsofprofessionalismandintegrityrequiredfortheGroup’soperations,whichcoverscompliancewithapplicablelaws,conflictsof interest,environmentalissues,reliabilityoffinancialreporting,briberyandstrictadherencetolaiddownprinciples,soastoeliminatethepotentialforillegalpractices.

Anti-Money Laundering

TheGroupalsohasanestablishedanti-moneylaunderingsysteminplaceincompliancewithrequirementsofGhana’sAnti-MoneyLaunderingAct2008. These includeduediligence foropeningnewaccounts,customeridentification,monitoringofhighriskaccounts,recordkeepingandtrainingandsensitisationofstaffonmoneylaundering,whichassistinreducingregulatoryandreputationalriskstoitsbusiness.

Corporate Governance (Cont’d)

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Report on the Financial Statements

WehaveauditedtheaccompanyingconsolidatedfinancialstatementsofAgriculturalDevelopmentBankanditssubsidiarieswhichcomprisetheconsolidatedstatementoffinancialpositionasat31December,2011, and consolidated statement of comprehensive income, consolidated statement of changes inequity and consolidated statement of cashflows for the year then ended, the notes to the financialstatementswhich include significant accountingpoliciesandother explanatorynotes, as set out onpages26to73.

Directors’ Responsibility for the Financial Statements

TheBank’sDirectorsare responsible for thepreparationand fairpresentationof theseconsolidatedfinancialstatementsinaccordancewithInternationalFinancialReportingStandardsandinthemannerrequiredbytheAgriculturalDevelopmentBankAct1965(Act286)amendedbyNLCD182of1967andAct352of1970andtheBankingAct,2004(Act673)asamendedbytheBankingAmendmentAct2007(Act738)andforsuchinternalcontrolasthedirectorsdetermineisnecessarytoenablethepreparationofconsolidatedfinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror.

Auditor’s Responsibility

Our responsibility is toexpressanopinionon theseconsolidatedfinancialstatementsbasedonouraudit.WeconductedourauditinaccordancewithInternationalStandardsonAuditing.Thesestandardsrequirethatwecomplywithethicalrequirementsandplanandperformtheaudittoobtainreasonableassuranceastowhetherthefinancialstatementsarefreefrommaterialmisstatement.

Anauditinvolvesperformingprocedurestoobtainauditevidenceabouttheamountsanddisclosuresintheconsolidatedfinancialstatements.Theproceduresselecteddependontheauditor’sjudgement,including theassessment of the risks ofmaterialmisstatement of the financial statements,whetherduetofraudorerror.Inmakingthoseriskassessments,theauditorconsidersinternalcontrolsrelevantto the entity’s preparation and fair presentation of the consolidated financial statements in order todesignauditproceduresthatareappropriateinthecircumstances,butnotforthepurposeofexpressinganopinionontheeffectivenessoftheentity’sinternalcontrols.Anauditalsoincludesevaluatingtheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesmadebymanagement,aswellasevaluatingtheoverallpresentationoftheconsolidatedfinancialstatements.

Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinion.

Opinion

In our opinion, the consolidated financial statements give a true and fair view of the consolidatedfinancialpositionofAgriculturalDevelopmentBankat31December2011anditsconsolidatedfinancialperformanceandcashflowsfor theyearendedinaccordancewith InternationalFinancialReportingStandards and in the manner required by the Agricultural Development Bank Act 1965 (Act 286)amendedbyNLCD182of1967andAct352of1970andtheBankingAct,2004(Act673)asamendedbytheBankingAmendmentAct2007(Act738).

Independent Auditor’s ReportTO THE SHAREHOLDERS OF AGRICULTURAL DEVELOPMENT BANK

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Report on Other Legal and Regulatory Requirements

CompliancewiththerequirementsoftheAgriculturalDevelopmentBankAct1965(Act286)asamendedbyNLCD182of1967andAct352of1970 andSection78of theBankingAct,2004(Act673)asamendedbytheBankingAmendmentAct2007(Act738)

Wehaveobtainedalltheinformationandexplanations,whichtothebestofknowledgeandbeliefwerenecessaryforthepurposeofouraudit.

Inouropinion,properbooksofaccounthavebeenkeptandtheconsolidatedstatementsoffinancialpositionandcomprehensiveincomeareinagreementwiththebooksofaccount.

The Bank’s transactionswerewithin its powers and the Bank generally compliedwith the relevantprovisionsoftheBankingAct,2004(Act673)asamendedbytheBankingAmendmentAct,2007(Act738).

CHARTERED ACCOUNTANTS13 YIYIWA DRIVE, ABELENKPEP O BOX GP242ACCRA

29thMarch,2012

Independent Auditor’s Report (Cont’d)TO THE SHAREHOLDERS OF AGRICULTURAL DEVELOPMENT BANK

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The Group The BankRestated Restated

2011 2010 2011 2010Note GH¢’000 GH¢’000 GH¢’000 GH¢’000

Interestincome 5 119,189 126,915 119,189 126,915Interestexpense 6 (38,891) (37,411) (38,891) (37,411)

-------- --------- --------- ---------Net interest income 80,298 89,504 80,298 89,504

===== ===== ===== =====

Feesandcommissionincome 7 39,665 22,130 39,665 22,130Feesandcommissionexpense 7 (2,221) (1,095) (2,211) (1,095)

-------- --------- --------- ---------Net fees and commission income 37,444 21,035 37,454 21,035

-------- --------- --------- ---------Nettradingincome 8 27,996 12,544 27,995 12,544Otheroperatingincome 9 17,854 17,793 17,854 14,493

-------- --------- --------- ---------Net non-interest revenue 83,294 51,372 83,303 48,072

------- --------- --------- ---------

Operating income 163,592 140,876 163,601 137,576====== ====== ====== ======

Impairmentchargeonloansandadvances 19 7,610 (6,686) 7,610 (6,686)

--------- ---------- ----------- ---------NetOperatingIncome 171,202 134,190 171,211 130,890

Operatingexpenses 10 (132,984) (123,003) (135,508) (120,201)---------- ---------- ---------- ----------

Operating profit 38,218 11,187 35,703 10,689===== ===== ===== =====

Shareofpost-taxprofit/(loss)ofAssociatedCompany 17 (411) 775 (411) 775Profit/(Loss)fromdisposalofnon-currentassets 22 5,656 801 2,961 801Profit/(Loss)fromdisposalofassociatecompanies 17 6,088 - 6,088 -Profit/(Loss)fromdisposalofsubsidiary 18 1,562 - 1,562 -

------- --------- -------- ---------ProfitbeforeNationalStabilizationLevy 51,113 12,763 45,903 12,265NationalFiscalStabilizationLevy (2,556) (645) (2,295) (613)

-------- --------- -------- ---------Profit after National Stabilization Levy 48,557 12,118 43,608 11,652

===== ===== ===== =====

Thenotesonpages26to73formanintegralpartofthesefinancialstatements.

Consolidated Statement of Comprehensive IncomeFOR THE YEAR ENDED 31 DECEMBER 2011

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The Group The BankRestated Restated

2011 2010 2011 2010Note GH¢’000 GH¢’000 GH¢’000 GH¢’000

Profitafternationalstabilizationlevy 48,557 12,118 43,608 11,652Netchangeinvalueofavailableforsaleinvestmentsecurities 14,16 14,654 2,943 14,654 2,943

-------- -------- --------- ---------Totalcomprehensiveincomefortheyear 63,211 15,061 58,262 14,595

===== ===== ==== =====

Profitfortheyearattributableto:EquityholdersoftheBank 48,557 12,147 43,608 11,652Non-controllinginterest - (29) - -

--------- ---------- --------- ---------48,557 12,118 43,608 11,652

==== ===== ===== =====Totalcomprehensiveincomeattributableto:EquityholdersoftheBank 63,211 15,090 58,262 14,595Non-controllinginterest - (29) - -

-------- --------- --------- --------63,211 15,061 58,262 14,595===== ===== ===== =====

EarningspershareBasicanddiluted(inGhanapesewas) 12 1.942 0.485 1.744 0.466


Consolidated Statement of Comprehensive IncomeFOR THE YEAR ENDED 31 DECEMBER 2011 (Cont’d)

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The Group The BankRestated Restated Restated

2011 2010 2011 2010 1/1/2010Note GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000

AssetsCashandbalanceswithCentralBankofGhana 13 81,660 89,010 81,660 89,010 72,263InvestmentinGovernmentSecurities 14 209,543 165,924 209,543 165,924 125,594DepositsandbalancesduefromBankingInstitutions 15 90,248 34,848 90,248 34,848 48,953Investmentinothersecurities 16 35,158 11,212 35,158 11,188 6,309Investmentinassociatecompanies 17 1,477 5,774 1,477 5,774 4,999Investmentinsubsidiaries 18 - - 14,493 15,644 1,151Loansandadvancestocustomers 19 678,747 576,987 678,747 576,987 393,449Otherassets 20 73,560 58,998 64,870 54,913 40,422Intangibleassets 21 11,974 564 11,974 564 787Propertyandequipment 22 31,304 24,882 17,587 9,651 24,271

----------- ----------- ---------- ------------ ----------Total Assets 1,213,671 968,199 1,205,757 964,503 718,198

====== ======= ====== ======= ======LiabilitiesCustomerdeposits 23 827,718 536,079 827,718 536,079 425,145Borrowedfunds 24 161,387 221,400 161,387 221,400 88,201Otherliabilities 25 42,859 104,248 40,488 100,745 96,331

---------- ------------ ----------- ------------ -----------1,031,964 861,727 1,029,592 858,224 609,677

====== ======= ====== ======= ======Capital ResourcesSharecapital 26 75,000 50,000 75,000 50,000 50,000Revaluationsurplus 1,748 1,979 1,748 1,979 15,372Incomesurplus 9,529 3,685 3,986 3,611 (6,146)Creditriskreserve 25,773 17,474 25,773 17,474 21,936Statutoryreserve 52,076 30,272 52,076 30,272 27,359Availableforsalereserve 17,581 2,943 17,581 2,943 -

---------- ---------- ----------- ---------- ----------Shareholders’ funds 181,707 106,353 176,164 106,279 108,521Non Controlling Interest - 119 - - -

---------- ----------- ---------- ----------- ----------Total liabilities and Shareholders’ Funds 1,213,671 968,199 1,205,757 964,503 718,198

====== ======= ====== ======= ======

ThesefinancialstatementswereapprovedbytheBoardofDirectorson29thMarch,2012andsignedonitsbehalfby:

…………………………….. ……………………………Director Director


Consolidated Statement of Financial PositionAT 31 DECEMBER 2011

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The Group The Bank2011 2010 2011 2010

Note GH¢’000 GH¢’000 GH¢’000 GH¢’000

Operating activitiesCashgeneratedfromoperations 27 168,508 (75,246) 170,237 (59,316)

Investing activitiesPurchaseofpropertyandequipment 22 (13,616) (5,414) (12,437) (5,676)Proceedsfromdisposalofpropertyandequipment 6,444 491 3,560 491AcquisitionofIntangibleassets (12,590) (1,124) (12,590) (1,124)Proceedsfromdisposalofassociatedcompany 10,200 - 10,200 -Proceedsfromdisposalsubsidiary 2,713 - 2,713 -Increaseinotherinvestmentsecurities (9,292) (1,246) (9,316) (1,270)Increaseinsubsidiaries - (15,644)Increaseinassociates 185 (4,999) 185 (4,999)

-------- --------- --------- ---------Net cash used in investing activities (15,956) (12,292) (17,685) (28,222)

-------- --------- -------- ---------Dividend paid - (2,000) - (2,000)National Stabilization Levy (2,169) (1,637) (2,169) (1,637)

Financing activitiesReceipts/(payments)inborrowedfunds (60,013) 133,199 (60,013) 133,199DividendIncome 1,298 949 1,298 949

--------- ---------- --------- ---------NetcashgeneratedfromfinancingActivities (58,715) 134,148 (58,715) 134,148

--------- --------- ---------- ----------Increaseincashandcashequivalents 91,668 42,973 91,668 42,973Cashandcashequivalentat1January 289,783 246,809 289,783 246,809

--------- ---------- ----------- ----------Cash and cash equivalents at 31 December 381,451 289,783 381,451 289,783

====== ====== ====== ======


Consolidated Statement of Cash FlowsFOR THE YEAR ENDED 31 DECEMBER 2011

NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTSFORTHEYEARENDED31DECEMBER2011

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1. GENERAL INFORMATION

AgriculturalDevelopmentBank(ADB)isafinancialinstitutionincorporatedinGhana.Theregisteredofficeof theAgriculturalDevelopmentBank is located at 37 IndependenceAvenue,Accra. TheAgriculturalDevelopment Bank operates under the Banking Act, 2004 (Act 673) as amended by the Banking(Amendment)Actof2008(Act738),andtheAgriculturalDevelopmentBankAct1965(Act286)asamendedbyNLCD182of1967andAct352of1970.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Theprincipalaccountingpoliciesappliedinthepreparationoftheseconsolidatedfinancialstatementsaresetoutbelow.Thesepolicieshavebeenconsistentlyappliedtoalltheyearspresented,unlessotherwisestated.

2.1 Statement of Compliance

The Group’s consolidated financial statements have been prepared in accordance with InternationalFinancial Reporting Standards (IFRS) as issued by the International Accounting Standards Board.AdditionalinformationrequiredbytheCompaniesCode,1963(Act179)andBankingAct,2004(Act673)asamendedbytheBanking(Amendment)Act,2007(Act738)havebeenincluded,whereappropriate.Theconsolidatedfinancialstatementshavebeenpreparedunderthehistoricalcostconvention,exceptfortherevaluationofpropertyandavailable-for-salefinancialassets,financialassetsandfinancialliabilities,whicharemeasuredatfairvaluethroughprofitorloss.

The consolidated financial statements comprise the consolidated financial position, consolidatedstatementsofcomprehensive income,changes inequityandcashflowsandnotesto theconsolidatedfinancialstatements.

The consolidated financial statements are presented in Ghana cedis which is the group’s functionalcurrency.Theyarepreparedonthehistoricalcostbasisexceptforthefollowingassetsandliabilitiesthatarestatedattheirfairvalue:financialinstrumentsthatarefairvaluethroughprofitandlossandfinancialinstrumentsclassifiedasavailable-for-sale.

ThepreparationoftheconsolidatedfinancialstatementsinconformitywithIFRSrequiresmanagementtomakejudgements,estimatesandassumptionsthataffecttheapplicationofpoliciesandreportedamountsofassets, liabilities, incomeandexpenses. Theestimatesandassociatedassumptionsarebasedonhistoricalexperienceandvariousotherfactorsthatarebelievedtobereasonableunderthecircumstances,theresultsofwhichformthebasisofmakingthejudgementaboutcarryingvaluesofassetsandliabilitiesthatarenotreadilyapparentfromothersources.Actualresultsmaydifferfromtheseestimates.

Theestimatesandunderlyingassumptionsarereviewedonanongoingbasis.Revisionstoaccountingestimatesarerecognisedintheperiodinwhichtheestimateisrevisediftherevisionaffectsonlythatperiodorintheperiodoftherevisionandfutureperiodsiftherevisionaffectsbothcurrentandfutureperiods.Inparticular,informationaboutsignificantareasofestimationuncertaintyandcriticaljudgementsinapplyingaccountingpolicies thathave themostsignificanteffecton theamount recognised in theconsolidatedfinancialstatementsaredescribedinnotesone(1).

2.1.1 New standards and interpretations not yet adopted

Therearenewor revisedAccountingStandardsand Interpretations in issue thatarenot yeteffective.These include the followingStandardsand Interpretations thatmayhavean impacton futurefinancialstatements:

Notes to the Consolidated Financial StatementsFOR THE YEAR ENDED 31 DECEMBER 2011

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Standard/Interpretation Effective dateIAS1amendment Presentation of Financial Statements:

Presentation of Items of Other Comprehensive Income

Annualperiodsbeginningonorafter1July2012*

IAS27 Separate Financial Statements (2011) Annualperiodsbeginningonorafter1January2013*

IAS28 Investments in Associates and Joint Ventures (2011)

Annualperiodsbeginningonorafter1January2013*

IFRS7amendment Disclosures – Transfers of Financial Assets Annualperiodsbeginningonorafter1July2011*

IFRS9(2009) Financial Instruments Annualperiodsbeginningonorafter1January2015*

IFRS9(2010) Financial Instruments Annualperiodsbeginningonorafter1January2015*

IFRS10 Consolidated Financial Statements Annualperiodsbeginningonorafter1January2013*

IFRS12 Disclosure of Interests in Other Entities Annualperiodsbeginningonorafter1January2013*

IFRS13 Fair Value Measurement Annualperiodsbeginningonorafter1January2013*

Amendment to IAS 1 Presentation of Financial Statements

Theamendment to IAS1will beadopted for thefirst time for thefinancial reportingperiodending31December2013.

TheBankwillpresentthoseitemsofothercomprehensiveincomethatmaybereclassifiedtoprofitorlossinthefutureseparatelyfromthosethatwouldneverbereclassifiedtoprofitorloss.Therelatedtaxeffectsforthetwosub-categorieswillbeshownseparately.

Thisisachangeinpresentationandwillhavenoimpactontherecognitionormeasurementofitemsinthefinancialstatements.Thisamendmentwillbeappliedretrospectivelyandthecomparativeinformationwillberestated.

IAS 27 (2011) Separate Financial Statements

IAS27(2011)willbeadoptedforthefirsttimeforthefinancialreportingperiodending31December2013.

IAS 27 (2011) supersedes IAS 27 (2008). IAS 27 (2011) carries forward the existing accounting anddisclosurerequirementsforseparatefinancialstatements,withsomeminorclarifications.

ThisamendmentwillnothaveasignificantimpactontheBank’sseparatefinancialstatementsfortheyearended31December2011.

IAS 28 (2011) Investments in Associates and Joint Ventures

IAS28(2011)willbeadoptedforthefirsttimeforthefinancialreportingperiodending31December2013.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)


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IAS 28 (2011) supersedes IAS 28 (2008) and carries forward the existing accounting and disclosurerequirementswithlimitedamendments.Theseinclude:

• IFRS5 isapplicable toan investment,oraportionofan investment, inanassociateora jointventurethatmeetsthecriteriatobeclassifiedasheld-for-sale;and

• Oncessationofsignificantinfluenceorjointcontrol,evenifaninvestmentinanassociatebecomesan investment ina jointventureorviceversa, thecompanydoesnot re-measure the retainedinterest.

ThisamendmentwillnothaveasignificantimpactontheBank’sfinancialstatementsfortheyearended31December2011.

Amendments to IFRS 7 Financial Instruments: Disclosures

TheamendmentstoIFRS7willbeadoptedforthefirsttimeforthefinancialreportingperiodending31December2012.

Intermsoftheamendmentsadditionaldisclosurewillbeprovidedregardingtransfersoffinancialassetsthatare:• notderecognisedintheirentirety;and• derecognisedintheirentiretybutforwhichtheBankretainscontinuinginvolvement.


IFRS 9 (2009) Financial Instruments

IFRS9willbeadoptedforthefirsttimeforthefinancialreportingperiodending31December2015.Thestandardwillbeappliedretrospectively,subjecttotransitionalprovisions.

IFRS9addressestheinitialmeasurementandclassificationoffinancialassetsandwillreplacetherelevantsectionsofIAS39.

UnderIFRS9therearetwooptionsinrespectofclassificationoffinancialassets,namely,financialassetsmeasuredatamortisedcostoratfairvalue.Financialassetsaremeasuredatamortisedcostwhenthebusinessmodelistoholdassetsinordertocollectcontractualcashflowsandwhentheygiverisetocashflowsthataresolelypaymentsofprincipaland interestontheprincipaloutstanding. Allotherfinancialassetsaremeasuredatfairvalue.Embeddedderivativesarenolongerseparatedfromhybridcontractsthathaveafinancialassethost.


IFRS 9 (2010) Financial Instruments

IFRS9(2010)willbeadoptedforthefirsttimeforthefinancialreportingperiodending31December2015.Thestandardwillbeappliedretrospectively,subjecttotransitionalprovisions.IFRS9(2010)addresses themeasurementandclassificationoffinancial liabilitiesandwill replace therelevantsectionsofIAS39.


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UnderIFRS9(2010),theclassificationandmeasurementrequirementsoffinancialliabilitiesarethesameasperIAS39,exceptforthefollowingtwoaspects:

• fairvaluechangesforfinancialliabilities(otherthanfinancialguaranteesandloancommitments)designatedat fairvalue throughprofitor loss, thatareattributable to thechanges in thecreditriskoftheliabilitywillbepresentedinothercomprehensiveincome(OCI).Theremainingamountof the fairvaluechange is recognised inprofitor loss.However, if this requirementcreatesorenlargesanaccountingmismatchinprofitorloss,thenthewholefairvaluechangeispresentedinprofitorloss.Thedeterminationastowhethersuchpresentationwouldcreateorenlargeanaccountingmismatchismadeoninitialrecognitionandisnotsubsequentlyreassessed.

• UnderIFRS9(2010)derivativeliabilitiesthatarelinkedtoandmustbesettledbydeliveryofanunquotedequityinstrumentwhosefairvaluecannotbereliablymeasured,aremeasuredatfairvalue.

IFRS9(2010)incorporates,theguidanceinIAS39dealingwithfairvaluemeasurementandaccountingforderivativesembeddedinahostcontractthatisnotafinancialasset,aswellastherequirementsofIFRIC9ReassessmentofEmbeddedDerivatives.


IFRS 10 Consolidated Financial Statements

IFRS10willbeadoptedforthefirsttimeforthefinancialreportingperiodending31December2013.Thestandardmaybeappliedretrospectively.IFRS10introducesasinglecontrolmodeltoassesswhetheran investee should be consolidated. This control model requires entities to perform the following indeterminingwhethercontrolexists:

• Identifyhowdecisionsaboutrelevantactivitiesaremade;• Assess whether the entity has power over relevant activities by considering only the entity’s

substantiverights;• Assesswhethertheentityisexposedtovariabilityinreturns,and• Assesswhethertheentityisabletouseitspowerovertheinvesteetoaffectreturnsforitsown

benefit

Controlshouldbeassessedonacontinuousbasisandshouldbereassessedasfactsandcircumstanceschange.


IFRS 12 Disclosure of Interests in Other Entities

IFRS12willbeadoptedforthefirsttimeforthefinancialreportingperiodending31December2013.IFRS12combines, inasinglestandard,disclosure requirements forsubsidiaries,associatesand jointarrangements,aswellasunconsolidatedstructuredentities.


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Therequireddisclosuresaimtoprovideinformationtoenableusersevaluate:

• Thenatureof,andrisksassociatedwith,anentity’sinterestsinotherentities,and• Theeffectsof those interestson theentity’sfinancialposition,financialperformanceandcash

flows.

Theadoptionofthisstandardwillincreasethelevelofdisclosureprovidedforinterestsinsubsidiaries,jointarrangements,associatesandstructuredentities

IFRS 13 Fair Value Measurement

IFRS13willbeadoptedforthefirsttimeforthefinancialreportingperiodending31December2013.Thestandardwillbeappliedprospectivelyandcomparativeswillnotberestated.

IFRS13 introducesasinglesourceofguidanceonfairvaluemeasurement forbothfinancialandnon-financialassetsandliabilitiesbydefiningfairvalue,establishingaframeworkformeasuringfairvalueandsettingoutdisclosuresrequirementsforfairvaluemeasurements.ThekeyprinciplesinIFRS13areasfollows:

• Fairvalueisanexitprice• Measurementconsiderscharacteristicsoftheassetorliabilityandnotentity-specificcharacteristics• Measurement assumes a transaction in the entity’s principle (or most advantageous) market

betweenmarketparticipants• Priceisnotadjustedfortransactioncosts• Measurement maximises the use of relevant observable inputs and minimises the use of

unobservableinputs• Thethree-levelfairvaluehierarchyisextendedtoallfairvaluemeasurements

ThisamendmentofIFRS13willnothaveanimpactontheBank’sfinancialstatementsfortheyearended31December2011.

2.2 Foreign currency translation

Transactions and balances

Foreigncurrencytransactionsaretranslatedintothefunctionalcurrencyusingexchangeratesprevailingatthedatesofthetransactionsorvaluation,whereitemsarere-measured.

Monetaryitemsdenominatedinforeigncurrencyarere-translatedatclosinginterbankmidratesrulingatthereportingdate.Non-monetaryitemsmeasuredathistoricalcostdenominatedinaforeigncurrencyaretranslatedatexchangeratesrulingatthedatesofinitialrecognition;andnon-monetaryitemsinaforeigncurrencythataremeasuredatfairvaluearetranslatedatexchangeratesrulingatthedatewhenfairvaluewasdetermined.

Foreignexchangegainsandlossesresultingfromthesettlementofforeigncurrencytransactionsandfromre-translationatyear-endexchangeratesofforeigncurrencydenominatedmonetaryassetsandliabilitiesarerecognisedinprofitorloss.

Allforeignexchangegainsandlossesrecognisedinprofitorlossarepresentednetwithinthecorrespondingitem.Foreignexchangegainsandlossesonothercomprehensiveincomeitemsarepresentedinothercomprehensiveincomewithinthecorrespondingitem.


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Changesinthefairvalueofmonetaryassetsdenominatedinforeigncurrencyclassifiedasavailableforsale,areanalysedbetweentranslationdifferencesresultingfromchangesinamortisedcostofthesecurityand other changes in the carrying amount of the security. Translation differences related to changesinamortisedcostare recognised inprofitor loss,whereasotherchanges incarryingamounts,exceptimpairment,arerecognisedinothercomprehensiveincome.

Translationdifferencesonnon-monetaryfinancialinstruments,suchasequitiesheldatfairvaluethroughprofitorloss,arereportedaspartofthefairvaluegainorloss.Translationdifferencesonnon-monetaryfinancialinstruments,suchasequitiesclassifiedasavailable-for-salefinancialassets,areincludedinothercomprehensiveincome.

2.3 Segment reporting

Asegment isadistinguishablecomponentof thegroup that isengagedeither inprovidingproductsorservices(businesssegment),orinprovidingproductsorserviceswithinaparticulareconomicenvironment(geographical segment), which is subject to risks and rewards that are different from those of othersegments.

TheBankcurrentlyusessinglesegmentalreportingtomanagement.

2.4 Interest income and expense

Interestincomeandexpenseforallinterest-bearingfinancialinstrumentsarerecognisedwithin‘interestincome’and‘interestexpense’inprofitorlossusingtheeffectiveinterestmethod.

Theeffectiveinterestmethodisamethodofcalculatingtheamortisedcostofafinancialassetorafinancialliabilityandallocatinginterestincomeorinterestexpenseovertherelevantperiod.Theeffectiveinterestrateistheratethatexactlydiscountsestimatedfuturecashpaymentsorreceiptsthroughtheexpectedlifeofthefinancialinstrumentor,whenappropriate,ashorterperiodtothenetcarryingamountofthefinancialassetorfinancial liability. Whencalculating theeffective interest rate, theGroupestimatescashflowsconsideringallcontractualtermsofthefinancialinstrument,includingprepaymentoptions,butdoesnotconsiderfuturecreditlosses.

Thecalculationincludesallfeesandpointspaidorreceivedbetweenpartiestothecontractthatareanintegralpartoftheeffectiveinterestrate,transactioncostsandallotherpremiumsordiscounts.

2.5 Fees and commissions

Feesandcommissionsaregenerallyrecognisedonanaccrualbasiswhentheservicehasbeenprovided.Loancommitmentfeesforloansthatarelikelytobedrawndownaredeferred,togetherwithrelateddirectcosts,andrecognisedasanadjustmenttotheeffectiveinterestrateontheloan.LoansyndicationfeesarerecognisedasrevenuewhenthesyndicationhasbeencompletedandtheGrouphasretainednopartoftheloanpackageforitselforretainedapartatthesameeffectiveinterestrateastheotherparticipants.

2.6 Dividends

Dividendsarecharged toequity in theperiod inwhich theyaredeclared.ProposeddividendsarenotaccrueduntiltheyhavebeenratifiedattheAnnualGeneralMeeting.


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2.7 Net trading income

Nettradingincomecomprisesgainslesslossesrelatingtotradingassetsandliabilities,includingrealisedandunrealisedfairvaluechanges,interestandforeignexchangedifferences.

2.8 Impairment and uncollectability of financial assets

Ateachdateofthestatementoffinancialposition,allfinancialassetsaresubjecttoreviewforimpairment.Ifitisprobablethatthebankwillnotbeabletocollectallamountsdue(principalandinterest)accordingtothecontractualtermsofloans,receivables,orheld-to-maturityinvestmentscarriedatamortisedcost,animpairmentorbaddebtlosshasoccurred.Thecarryingamountoftheassetisreducedtoitsestimatedrecoverableamountthroughuseofanallowanceaccount.Theamountofthelossincurredisincludedinthestatementofcomprehensiveincomefortheperiod.

Ifalossonafinancialassetcarriedatfairvalue(recoverableamountisbeloworiginalacquisitioncost)hasbeenrecogniseddirectlyinequityandthereisobjectiveevidencethattheassetisimpaired,thecumulativenetlossthathadbeenrecogniseddirectlyinequityisremovedfromequityandrecognisedinthestatementofcomprehensiveincomefortheperiodeventhoughthefinancialassethasnotbeenderecognised.

Thebankconsidersevidenceof impairmentatbothaspecificassetandcollectivelevel.All individuallysignificant financial assets are assessed for specific impairment.All significant assets foundnot to bespecificallyimpairedarethencollectivelyassessedforanyimpairmentthathasbeenincurredbutnotyetidentified.Assetsthatarenotindividuallysignificantarethencollectivelyassessedforimpairmenttogetherwithfinancialassetswithsimilarriskcharacteristics.

Objective evidence that financial assets are impaired can include observable data that comes to theattentionofthebankaboutthefollowinglossevents:

• Significantfinancialdifficultyoftheborrower• Defaultordelinquencybyaborrower• Restructuringofaloanoradvancebythebankontermsthatthebankwouldnototherwiseconsider• Indicationthataborrowerorissuerwillenterbankruptcy• Thedisappearanceofanactivemarketforasecurity,or• Otherobservabledata relating toagroupofassetssuchasadversechanges in thepayment

statusofborrowersorissuersinthegroup,oreconomicconditionsthatcorrelatewithdefaultsinthegroup.

Inassessingcollectiveimpairmentthebankusesstatisticalmodellingofhistoricaltrendsoftheprobabilityofdefault,timingofrecoveriesandtheamountoflossincurred,adjustedformanagement’sjudgementastowhethercurrenteconomicandcreditconditionsaresuchthattheactuallossesarelikelytobegreaterorlessthansuggestedbyhistoricalmodelling.Defaultrates,lossratesandtheexpectedtimingoffuturerecoveriesareregularlybenchmarkedagainstactualoutcomestoensurethattheyremainappropriate.

a. Assets carried at amortised costs

Impairmentlossesonassetscarriedatamortisedcostaremeasuredasthedifferencebetweenthecarryingamountof thefinancialassetsandthepresentvalueofestimatedcashflowsdiscountedat theassets’original effective interest rate. Losses are recognised in the statement of comprehensive income andreflectedinanallowanceaccountagainstloansandadvances.Interestontheimpairedassetcontinuestoberecognisedthroughtheunwindingofthediscount.Whenasubsequenteventcausestheamountofimpairmentlosstodecrease,theimpairmentlossisreversedthroughprofitorloss.


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b. Assets carried at fair value

Impairmentlossesonavailable-for-saleinvestmentsecuritiesarerecognisedbytransferringthedifferencebetweentheamortisedacquisitioncostandcurrentfairvalueoutofequitytothestatementofcomprehensiveincome.Whenasubsequenteventcausestheamountofimpairmentlossonanavailable-for-saledebtsecuritytodecrease,theimpairmentlossisreversedthroughthestatementofcomprehensiveincome.

However,anysubsequent recovery in the fairvalueofan impairedavailable-for-saleequitysecurity isrecogniseddirectlyinequity.Changesinimpairmentprovisionsattributabletotimevaluearereflectedasacomponentofinterestincome.

c. Renegotiated loans

Loans thatareeithersubject tocollective impairmentassessmentor individuallysignificantandwhosetermshavebeenrenegotiatedareconsideredtobepastdue. 2.9 Impairment of non-financial assets

Intangibleassetsthathaveanindefiniteusefullifearenotsubjecttoamortisationandaretestedannuallyforimpairment.Assetsarereviewedforimpairmentwhenevereventsorchangesincircumstancesindicatethatthecarryingamountmaynotberecoverable.Animpairmentlossisrecognisedfortheamountbywhichtheasset’scarryingamountexceedsitsrecoverableamount.Therecoverableamountisthehigherofanasset’sfairvaluelesscoststosellandvalueinuse.Forthepurposesofassessingimpairment,assetsaregroupedatthelowestlevelsforwhichthereareseparatelyidentifiablecashflows(cash-generatingunits).Theimpairmenttestalsocanbeperformedonasingleassetwhenthefairvaluelesscosttosellorthevalueinusecanbedeterminedreliably.Non-financialassetsthatsufferimpairmentarereviewedforpossiblereversaloftheimpairmentateachreportingdate

2.10 Cash and cash equivalents

Forthepurposesofthestatementofcashflows,cashequivalentsincludeshorttermliquidinvestmentswhicharereadilyconvertibleintoknownamountsofcashandwhichwerewithinthreemonthsofmaturitywhenacquired,lessadvancesfrombanksrepayablewithinthreemonthsfromthedatesoftheadvances.

2.11 Repossessed property

In certain circumstances, property is repossessed following foreclosure on loans that are in default.Repossessedpropertiesaremeasuredatthelowerofcarryingamountandfairvaluelesscoststosellandreportedwithin‘Otherassets’.

2.12 Leasing

Leasesareclassifiedasfinanceleaseswheneverthetermsoftheleasetransfersubstantiallyalltherisksandrewardsofownershiptothelessee.Allotherleasesareclassifiedasoperatingleases.

The Bank as lessor

AmountsduefromlesseesunderfinanceleasesarerecordedasreceivablesattheamountoftheBank’snetinvestmentintheleases.FinanceleaseincomeisallocatedtoaccountingperiodssoastoreflectaconstantperiodicrateofreturnontheBank’snetinvestmentoutstandinginrespectoftheleases.Rentalincomefromoperatingleasesisrecognisedonastraight-linebasisoverthetermoftherelevantlease.


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2.12 Leasing (cont’d)

Bank as lesee

Rentalspayableunderoperatingleasesarechargedtoincomeonastraight-linebasisoverthetermoftherelevantlease.

2.13 Property and equipment

Propertyandequipmentarestatedatcostorasprofessionallyrevaluedfromtimetotimelessaccumulateddepreciation.

Increasesinthecarryingamountarisingonrevaluationarecreditedtoarevaluationsurplus.Decreasesthatoffsetprevious increasesof thesameassetarechargedagainsttherevaluationsurplus. Allotherdecreasesarechargedtothestatementofcomprehensiveincome.Eachyearthedifferencebetweendepreciationbasedontherevaluedcarryingamountofanasset(thedepreciationchargedtothestatementof comprehensive income) anddepreciation basedon the asset’s original cost is transferred from therevaluationsurplustorevenuereserves.

Depreciation

Depreciationonotherpropertyandequipment iscalculated towriteoff theircostorvaluation inequalannualinstalmentsovertheirestimatedusefullives.Theannualratesinuseare:

Buildings 5% Motorvehicles 25% Furnitureandequipment 20% Computers 33.33% LeaseholdImprovement 20%

Wherethecarryingamountofanassetisgreaterthanitsestimatedrecoverableamount,itiswrittendownimmediatelytoitsrecoverableamount.

Leasehold Land

Paymentstoacquireleaseholdinterestinlandaretreatedasoperatingleaseprepaymentsandamortisedovertheperiodofthelease.

Computer Software Development cost

Generally, costs associated with developing computer software programmes are recognised as anexpensewhenincurred.However,coststhatareclearlyassociatedwithanidentifiableanduniqueproductwhichwillbecontrolledbythebankandhasaprobablebenefitexceedingthecostbeyondoneyear,arerecognisedasanintangibleasset.

Expenditure which enhances and extends computer software programmes beyond their originalspecificationsand lives is recognisedasacapital improvementandadded to theoriginal costsof thesoftware.

Computersoftwaredevelopmentcostsrecognisedasassetsarestatedatcostlessamortisation.


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Amortisationiscalculatedonastraightlinebasisovertheestimatedusefullivesnotexceedingaperiodof3years.

2.14 Taxation

TheBankisnotliablietocorporatetaxaspertheAgriculturalDevelopmentBankAct1965(Act286)asamendedbyNLCD182of1967andAct352of1970.

2.15 Provisions

ProvisionsarerecognisedwhentheGrouphasapresentlegalorconstructiveobligationasaresultofpasteventsthatcanbereliablyestimatedanditisprobablethatanoutflowofresourceswillberequiredtosettletheobligation.Restructuringprovisionscompriseleaseterminationpenaltiesandemployeeterminationpayments.Provisionsarenotrecognisedforfutureoperatinglosses.

Wherethereareanumberofsimilarobligationswhicharelikelytoresult inanoutflowtosettlerelatedclassesofobligationsasawhole,aprovisionisrecognisedevenifthelikelihoodofanoutflowwithrespecttoanyoneitemincludedinthesameclassofobligationsmaybesmall.

Provisionsaremeasuredatthepresentvalueofexpendituresexpectedtoberequiredtosettleobligationsusingpre-taxratesthatreflectcurrentmarketassessmentsofthetimevalueofmoneyandrisksspecifictotheobligation.Anincreaseintheprovisionduetopassageoftimeisrecognisedasaninterestexpense.

2.16 Financial guarantee contracts

Financialguaranteecontractsarecontractsthatrequiretheissuertomakespecifiedpaymentstoreimbursetheholderforalossitincursbecauseaspecifieddebtorfailstomakepaymentswhendue,inaccordancewiththetermsofadebtinstrument.Suchfinancialguaranteesaregiventofinancialinstitutionsandotherbodiesonbehalfofcustomerstosecureloansandoverdrafts.

Financial guarantees are initially recognised at the fair value and amortised over the life of financialguarantee.Thefinancialguaranteeissubsequentlycarriedatthehigheroftheamortisedamountandthepresentvalueofanyexpectedpayments,whenpaymentbecomesprobable.

2.17 Derivative financial instruments

Derivative contracts are initially recognised at fair value on the date onwhich a derivative contract isentered intoandare subsequently re-measuredat their fair value. Fair valuesmaybeobtained fromquotedmarketpricesinactivemarkets,recentmarkettransactions,andvaluationtechniques,includingdiscountedcashflowmodelsandoptionpricingmodels,asappropriate. Allderivativesarecarriedasassetswhenfairvalueispositiveandasliabilitieswhenfairvalueisnegative.Thefairvaluechangesinthederivativearerecognisedinprofitorloss.

2.18 Dividend on ordinary shares

Dividendsonordinarysharesarerecognised inequity in theperiod inwhichtheyareapprovedbytheshareholders.


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2.19 Consolidation

(a) Subsidiaries

Subsidiariesareall theentitiesoverwhich theGrouphaspower togovern thefinancialandoperatingpoliciesgenerallyaccompanyingashareholdingofmorethanonehalfofthevotingrights.Theexistenceand effect of potential voting rights that are currently excisable or convertible are considered whenassessingwhethertheGroupcontrolsanotherentity.SubsidiariesarefullyconsolidatedfromthedateonwhichcontrolistransferredtotheGroup.Theyaredeconsolidatedfromthedateonwhichcontrolceases.Inter-companytransactions,balancesandunrealisedgainsontransactionsbetweengroupcompaniesareeliminated.Unrealisedlossesarealsoeliminatedunlessthetransactionprovidesevidenceofimpairmentoftheassettransferred. (b) Associates

Associates are all entities over which the Group has significant influence but not control, generallyaccompanyingashareholdingofbetween20%and50%ofthevotingrights.Investmentsinassociatesareaccountedforbytheequitymethodofaccountingandareinitiallyrecognisedatcost.

2.20 Post balance sheet event

Eventssubsequenttothebalancesheetdatearereflectedinthefinancialstatementsonlytotheextentthattheyrelatetotheyearunderconsiderationandtheeffectismaterial.

2.21 Retirement benefit cost

Thebankoperatesadefinedcontributionbenefitschemeforitsemployees.Theassetsofthisschemeareheldbythetreasurydepartmentof thebank.Theschemeis fundedbycontributionsfromboththeemployeesandemployer.Benefitsarepaidtoretiringstaffinaccordancewiththeschemerules.

ThebankalsocontributestothestatutorySocialSecurity&NationalInsuranceTrust(SSNIT).ThisisadefinedcontributionschemeregisteredundertheNationalSocialSecurityAct. Thebank’sobligationsundertheschemearelimitedtospecificcontributionslegislatedfromtimetotimeandarecurrentlylimitedtoamaximumof13%ofanemployee’sbasicsalarypermonth.Thebank’sobligationstostaffretirementbenefitschemesarechargedtothestatementofcomprehensiveincomeintheyeartowhichtheyrelate.

2.22 Provision for employee entitlement

Employeeentitlementstoannual leavearerecognisedwhentheyaccruetoemployees. Aprovision ismadefortheestimatedliabilityforannualleaveaccruedatthedateofthestatementoffinancialposition.

2.23 Comparatives

Wherenecessary,comparativefigureshavebeenadjustedtoconformwithchangesinpresentationinthecurrentyear.


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3. FINANCIAL RISK MANAGEMENT

Introduction and overview

The bank’s activities expose it to a variety of financial risks and those activities involve the analysis,evaluation,acceptanceandmanagementofsomedegreeofriskorcombinationofrisks.Takingriskiscoretothebank’sbusiness,andtheoperationalrisksareaninevitableconsequenceofbeinginbusiness.Thebank’saimisthereforetoachieveanappropriatebalancebetweenriskandreturnandminimizepotentialadverseeffectsonitsfinancialperformance.

Themostimportanttypesofriskinclude:

• Creditrisk• Liquidityrisk• Marketrisk–includescurrency,interestrateandotherpricerisk• Operationalrisk

Risk management framework

TheBoardofDirectorshasoverall responsibility for theestablishmentandoversightof theBank’s riskmanagement framework. The board has established a BoardAudit and Risk Committees and a riskdepartment to assist in the discharge of this responsibility.The board has also established theCreditCommitteewhichisresponsiblefordevelopingandmonitoringriskmanagementintheirrespectiveareas.

Thebank’sriskmanagementpoliciesareestablishedtoidentifyandanalysetherisksfacedbythebank,tosetappropriaterisklimitsandcontrols,andtomonitorrisksandadherencetolimits.Riskmanagementpoliciesandsystemsarereviewedregularlytoreflectchangesinmarketconditions,productsandservicesoffered. The bank, through its training and management standards and procedures, aims to developa disciplined and constructive control environment, inwhich all employees understand their roles andobligations.

Thebank’sAuditandRiskManagementCommitteesareresponsibleformonitoringcompliancewiththebank’sriskmanagementpoliciesandprocedures,andforreviewingtheadequacyoftheriskmanagementframework in relation to the risks faced by the bank. The Audit and Risk Management Committeesareassisted in these functionsby InternalAudit and the riskmanagementdepartments. InternalAuditundertakesbothregularandad-hocreviewsofriskmanagementcontrolsandprocedures,theresultsofwhicharereportedtotheSubBoardAuditCommittee.

Credit Risk

Creditriskistheriskoffinanciallosstothebankifacustomerorcounterpartytoafinancialinstrumentfailstomeetitscontractualobligations,andarisesprincipallyfromthebank’sloansandadvancestocustomersandotherbanksandinvestmentsecurities.

Forriskmanagementreportingpurposes,thebankconsidersandconsolidatesallelementsofcreditriskexposure.

Management of credit risk

The Board of Directors has delegated responsibility for the management of credit risk to its Credit-CommitteeandSub-BoardRiskManagementCommittee.AseparateCreditdepartment,reportingtotheExecutiveCommittee,isresponsibleforoversightofthebank’screditrisk,including:


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3. FINANCIAL RISK MANAGEMENT (CONT’D)

• Formulatingcreditpoliciesinconsultationwithbusinessunits,coveringcollateralrequirements,creditassessment,riskgradingandreporting,documentaryandlegalprocedures,andcompliancewithregulatoryandstatutoryrequirements.

• Establishingtheauthorisationstructurefortheapprovalandrenewalofcreditfacilities.Authorisationlimitsareallocatedtobusinessunits.LargerfacilitiesrequireapprovalbytheExecutiveCommitteemembersandtheBoard(SubCommittee)onriskmanagement.

• Reviewing and assessing credit risk. The Credit departments assess all credit exposures inexcessofdesignatedlimits,priortofacilitiesbeingcommittedtocustomersbythebusinessunitconcerned.Renewalsandreviewsoffacilitiesaresubjecttothesamereviewprocess.Limitingconcentrationsofexposuretocounterparties,geographiesandindustries(forloansandadvances),andbyissuer,creditratingband,marketliquidityandcountry(forinvestmentsecurities).

• Developingandmaintainingthebank’sriskgradinginordertocategoriseexposuresaccordingtothedegreeofriskoffinanciallossfacedandtofocusmanagementontheattendantrisks.Theriskgradingsystemisusedindeterminingwhereimpairmentprovisionsmayberequiredagainstspecific credit exposures. The current risk grading framework consists of 4 grades reflectingvaryingdegreesofriskofdefaultandtheavailabilityofcollateralorothercreditriskmitigation.TheresponsibilityforsettingriskgradeslieswiththeBoardofDirectors.RiskgradesaresubjecttoregularreviewsbytheRiskManagementDepartment.

• Reviewingcomplianceofbusinessunitswithagreedexposurelimits,includingthoseforselectedindustries,countryriskandproducttypes.Regularreportsareprovidedtothecreditdepartmentonthecreditqualityofportfoliosandappropriatecorrectiveactionistaken.

• Providing advice, guidance and specialist skills to business units to promote best practicethroughoutthebankinthemanagementofcreditrisk.

Risk management

TheBankhasariskmanagementdepartmentorganised intocreditcontrol, recoveriesandoperationalcontrol.Underthecreditcontroldepartment,ithascreditadministration,creditriskappraisalandcreditmonitoring.ThedepartmentisresponsibleformanagingallriskstowhichtheBankisexposed(operationalrisk,creditrisk,liquidityrisk,interestrateriskandforeigncurrencyrisk).TheriskmanagementdepartmentisdevelopingariskmanagementframeworkfortheBank.

TheBanktreatsallbranchesasindependentbusinessunitswhichgeneratetheirownincome,runtheirownprofitandlossaccountandstatementoffinancialposition.Theheadofficeconsolidatestheseandexercisesoversightresponsibilityoverallthebranches.Creditisgeneratedatthebranchlevelandisthenchanneledthroughthecreditcontrolunitoftheriskmanagementdepartmentwhereacreditriskappraisalisperformedtoassesswhethertoengagetheclientornot.Theclient’sfileisthenmovedtotheheadofriskmanagementandtotheotherappropriatelevels(creditcommittee,boardandsoon)forfinalapprovalbefore credit is granted. There is also themonitoring aspectwhere the head office creditmonitoringteammonitors the loans and their performance in addition to themonitoring performed at the branchlevel.Wherealoangoesbeyondcurrent,itisclassifiedaseitherolem,substandard,doubtfulorloss,asrecommendedbytheCentralBankofGhana.Wherealoangoesbeyondcurrent,thereistherecoveriesteamwhichmovesintorecoverloanlosses.


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After initial recognition, the bank measures all financial liabilities including customer deposits andborrowings other than liabilities held for trading at amortised cost. Liabilities held for trading (financialliabilitiesacquiredprincipallyforthepurposeofgeneratingaprofitfromshort-termfluctuationsinpriceordealer’smargin)aresubsequentlymeasuredattheirfairvalues.

Interest-bearing borrowings are initially measured at fair value, and are subsequently measured atamortised cost, using the effective interest ratemethod.Any difference between the proceeds (net oftransaction costs) and the settlement or redemption of borrowings is recognised over the term of theborrowings.

Repurchase agreement transactions

SecuritiespurchasedfromtheCentralBankofGhanaunderagreementstoresell(“reverserepo’s”),aredisclosedasoffbalancesheetguaranteesinthefinancialstatement.

On- statement of financial position itemsGroup Group Bank Bank

2011 2010 2011 2010Assets GH¢’000 GH¢’000 GH¢’000 GH¢’000

a) Governmentsecurities 209,543 165,924 209,543 165,924====== ====== ====== ======

b) Depositsduefromfinancialinstitutions:Local 35,466 30,997 35,466 30,996Foreign 54,782 3,851 54,782 3,851

--------- -------- --------- ---------90,248 34,848 90,248 34,848===== ===== ===== =====

c) LoansandadvancestocustomersLoanstoindividuals:Overdraft 12,596 64,108 12,596 64,108Termloans 127,215 86,770 127,215 86,770

---------- ---------- ---------- -----------139,811 150,878 139,811 150,878---------- ---------- ---------- -----------

d) Loanstocorporateentities:Overdrafts 192,642 187,999 192,642 187,999Termsloans 363,148 262,575 363,148 262,575

---------- --------- ---------- -----------555,790 450,574 555,790 450,574---------- ---------- ---------- -----------

Grossloansandadvances(includingsuspendedinterest) 695,601 601,452 695,601 601,452

====== ====== ====== ======Off-statementoffinancialpositionitems:Lettersofcredit 32,170 30,253 32,170 30,252Guaranteesandindemnities 131,520 114,065 131,520 114,065

----------- ----------- ---------- -----------163,690 144,318 163,690 144,317====== ====== ====== ======


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Thebankdoesnotperceiveanysignificantcreditriskonthefollowingfinancialassets:

•InvestmentsinGovernmentsecuritiesandCentralBankofGhana.

Thetablebelowrepresentsthemaximumcreditriskexposuretothebankat31December2011,andaftertakingintoaccountcreditenhancements.

Gross Amount ImpairmentGH¢’000 %

2011Loans and Advances to CustomersNeitherpastduenorimpaired 659,182 0.95Pastduebutnotimpaired 6,995 0.01Impaired 29,424 0.04

---------- ------695,601 1.00====== ===


Eachbusiness unit is required to implement bank credit policies andprocedures,with credit approvalauthoritiesdelegatedfromthebanksRiskManagementDepartment.EachbusinessunithasaCreditRiskofficerwhoreportsonallcreditrelatedmatterstoRiskManagementDepartment.

Impaired loans

Impairedloansandsecuritiesareloansandsecuritiesforwhichthebankdeterminesthatitisprobablethatitwilleunabletocollectallprincipalandinterestdueaccordingtothecontractualtermsoftheloan/securitiesagreement(s).

Past due but not impaired loans

Loansandadvanceswherecontractualinterestorprincipalpaymentsarepastduebutthebankbelievesthatimpairmentisnotappropriateonthebasisofthelevelofsecurity/collateralavailableand/orthestateofcollectionofamountsowedtothebank.

Allowances for impairment

Thebankestablishesanallowanceforimpairmentlossesthatrepresentsitsestimateofincurredlossesin its loanportfolio.Themaincomponentsof thisallowanceareaspecific losscomponent that relatesto individually significant exposures, and a collective loan loss allowance established for banks ofhomogeneousassetsinrespectoflossesthathavebeenincurredbuthavenotbeenidentifiedonloanssubjecttoindividualassessmentforimpairment.

Write-off policy

The bankwrites off a loan/security balance (and any related allowances for impairment losses)whentheCredit department determines that the loans are uncollectible.This determination is reached afterconsideringinformationsuchastheoccurrenceofsignificantchangesintheborrower’sfinancialpositionsuchthattheborrowercannolongerpaytheobligation,orthatproceedsfromcollateralwillnotbesufficienttopaybacktheentireexposure.


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Forsmallerbalancestandardisedloans,chargeoffdecisionsgenerallyarebasedonaproductspecificpastduestatus.AformalapprovalissoughtfromtheBoardandBankofGhanabeforeawrite-offexerciseisdone.

Collateral held

Thebankholdscollateralagainstloansandadvancestocustomersintheformofcash,mortgageinterestsoverproperty,otherregisteredsecuritiesoverassets,andguarantees.Estimatesoffairvaluearebasedonthevalueofcollateralassessedatthetimeofborrowing,andgenerallyarenotupdatedexceptwhenaloanisindividuallyassessedasimpaired.CollateralgenerallyisnotheldoverInterbankplacements,exceptwhensecuritiesareheldaspartofreverserepurchaseandsecuritiesborrowingactivity.Collateralusuallyisnotheldagainstinvestmentsecurities,andnosuchcollateralwasheldat31December2011.

Anestimateofthefairvalueofcollateralandothersecurityenhancementsheldagainstfinancialassetsisshownbelow:

Loansandadvancestocustomers

Concentration of risk

Thebankmonitorsconcentrationsofcreditriskbysector.Ananalysisofconcentrationsofcreditriskatthereportingdateisshownbelow:

Group Group Bank Bank2011 2010 2011 2010

GH¢’000 GH¢’000 GH¢’000 GH¢’000

Againstindividuallyimpairedproperty 117,932 51,845 117,932 51,845Againstneitherpastduenorimpairedproperty 642,798 481,737 642,798 481,737

--------- ---------- ---------- ----------Total 760,730 533,582 760,730 533,582

====== ====== ====== ======

Advancestocustomers-gross 2011 2010GH¢’000 % GH¢’000 %

Agriculture 190,819 27 174,223 29Manufacturing 34,631 5 34,524 6CommerceandFinance 114,888 17 149,158 25TransportandCommunication 13,905 2 12,853 2MiningandQuarrying 6,197 1 7,526 1BuildingandConstruction 35,869 5 47,940 8Services 293,325 42 168,446 28Others 5,967 1 6,782 1

----------- ----- ----------- -----695,601 100 601,452 100====== === ====== ===


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a) Interestraterisk

Interestrateriskistheexposureofcurrentandfutureearningsandcapitaltoadversechangesinthelevelofinterestrates.Exposuretointerestrateriskcanresultfromavarietyoffactors,including:

(i) Differencesbetweenthetimingofmarketinterestratechangesandthetimingofcashflows (repricingrisk);(ii) Changesinthemarketinterestratesproducingdifferenteffectonyieldsonsimilarinstruments

withdifferentmaturities(yieldcurverisk);and(iii) Changesinthelevelofmarketinterestratesproducingdifficulteffectsonratesreceivedorpaid

oninstrumentswithsimilarrepricingcharacteristics(basisrisk)

TheGroup uses gap analysis tomeasure its exposure to interest rate risk. Through this analysis, itcomparesthevaluesofinterestratesensitiveassetsandliabilitiesthatmatureorrepriceatvarioustimeperiodsinthefuture.TheGroupmaymakejudgmentalassumptionsaboutthebehaviourofassetsandliabilitieswhichdonothavespecificcontractualmaturityorrepricingdates.

TheAssetsandLiabilityManagementCommitteecloselymonitorstheinterestratetrendstominimizethepotentialadverseimpactofinterestratechanges.

Thematchingandcontrolledmismatchingofthematuritiesandinterestratesofassetsandliabilities isfundamentaltothemanagementofthebank.

Theinterestrateriskssensitivityanalysisisbasedonthefollowingassumptions.

• Changesinthemarketinterestratesaffecttheinterestincomeorexpensesofvariableinterestfinancialinstruments

• Changesinmarketinterestratesonlyaffectinterestincomeorexpensesinrelationtofinancialinstrumentswith

• fixedinterestratesifthesearerecognizedattheirfairvalue.• Theinterestratechangeswillhaveasignificanteffectoninterestsensitiveassetsandliabilities

andhencesimulation• modelingisappliedtonetinterestmargins.• Theinterestratesofallmaturitiesmovebythesameamountand,therefore,donotreflectthe

potentialimpactonnetinterestincomeofsomerateschangingwhileothersremainunchanged.• Theprojectionsmakeotherassumptionsincludingthatallpositionsruntomaturity.

Interest rate risk and foreign currency risk

TheBankuses theReuters system tomonitor live interestandexchange rates to facilitate tradingbythetreasurydepartment.ThishelpstheBanktoknowwhatishappeningatanymomentintimeonthemarketsandwhereopportunitiesarepresenttomakegainsfromhighinterestrates.

ThebankhasalsoinstitutedaBaselIIcompliancecommitteewhichisscheduledtomeetthroughouttheyeartoreviewvariousrisksthattheBankfacesandhowtomovecloselytoBaselII.


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Less than less than less than less than less than Total 1 months 3 months 6 months 1 year 3 years GH¢’000

Financial assets

CashandbalanceswithCentralBankofGhana 81,660 - - - - 81,660GovernmentSecurities - - 16,133 193,410 - 209,543Depositsandbalancesduefrombankinginstituitions 90,248 - - - - 90,248Loansandadvancestocustomers(net) 210,858 78,076 132,514 168,801 88,498 678,797

---------- --------- ---------- ----------- ---------- --------Total financial assets 382,766 78,076 148,647 362,211 88,498 1,060,198

---------- --------- ---------- ---------- -------- -----------Financial liabilitiesCustomerdeposits 136,973 117,822 437,273 135,650 - 827,718Depositsandbalanceduetobankinginstitutions 33,400 7,579 11,363 78,930 30,115 161,387

---------- --------- ---------- --------- -------- ----------Total financial assets 170,373 125,401 448,636 214,580 30,115 989,105

---------- --------- --------- --------- -------- ----------Interest rate sensitivity gapAsat31December2011Totalfinancialassets 382,766 78,076 148,647 362,211 88,498 1,060,198Totalfinancialliabilities 170,373 125,401 448,636 214,580 30,115 989,105

---------- ---------- ------------ ---------- -------- ----------Interest rate sensitivity gap 184,713 (47,324) (299,119) 157,352 58,383 71,093

---------- ---------- ----------- --------- -------- ----------

Foreign exchange risk

Foreignexchangeriskismeasuredthroughtheincomestatement.TheGrouptakesonexposuretotheeffectsoffluctuationsintheprevailingforeigncurrencyexchangeratesonitsfinancialpositionandcashflows.TheBoardsetslimitsonthelevelofexposurebycurrencyandinaggregateforbothovernightandintragroup.

ThetablebelowsummarisestheGroup’sexposuretoforeigncurrencyexchangerateriskat31December.


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a) AssetsUSD GBP EUR Other

GH¢’000 GH¢’000 GH¢’000 GH¢’000

CashandbalancewithCentralBankofGhana 1,610 279 528 87Equityinvestment - 4,500 - -DepositsandbalanceduefrombankingInstituition 34,205 370 (149) -Loansandadvancestocustomers(net) 80,217 - 1,181 -Otherassets 976 244 548 -

----------- ------- ------- ---Total financial assets 117,008 5,393 2,108 87

====== ==== ==== ==

b) Financial liabilities

Customerdeposits 48,230 1,423 3,855 -Borrowings 58,500 - - -Otherliabilities 3,310 - 57 -

---------- -------- --------- ----Total financial liabilities 110,040 1,423 3,912 -

===== ==== ==== ===

Netbalancesheetposition 6,966 3,968 (1,804) 87

Asat31December2011 - - - -Totalfinanacialassets 117,008 5,393 2,108 87Totalfinancialliabilities 110,041 1,424 3,912 -

--------- -------- ------- ----Net balance sheet position 6,966 3,968 (1,804) 87

==== ==== ==== ===

Theexchangeratesusedfortranslatingthemajorforeigncurrencybalancesattheyearendwereasfollows:

UnitedStatesofAmericaDollars(USDollar$) 1.5841 1.4532GreatBritishPound(GBPound£) 2.4456 2.2511EuropeanUnionEuro 2.0501 1.9405


Liquidity risk

LiquidityriskistheriskthattheGroupisunabletomeetitspaymentobligationsassociatedwithitsfinancialliabilitieswhentheyfalldueandbeabletoreplacefundswhentheyarewithdrawn.Theconsequencemaybethefailuretomeetobligationstorepaydepositorsandfulfilcommitmentstolend.


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Management of liquidity risk

TheBank’sapproachtomanagingliquidityistoensure,asfaraspossible,thatitwillalwayshavesufficientliquidity tomeet its liabilities when due, under both normal and stressed conditions, without incurringunacceptablelossesorriskingdamagetothebank’sreputation.

Thetreasurydepartmentmaintainsaportfolioofshort-termliquidassets,largelymadeupofshort-termliquid investmentsecurities, loansandadvancestobanksandother inter-bankfacilities, toensurethatsufficientliquidityismaintainedwithinthebankasawhole.

Exposuretoliquidityrisk

Thekeymeasureusedbythebankformanagingliquidityriskistheratioofnetliquidassetstodepositsfromcustomers.

Forthispurposenetliquidassetsareconsideredasincludingcashandcashequivalentsandinvestmentgradedebtsecuritiesforwhichthere isanactiveandliquidmarket lessanydepositsfrombanks,debtsecuritiesissued,otherborrowingsandcommitmentsmaturingwithinthenextmonth.


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3.

FIN

AN

CIA

L R

ISK

MA

NA

GEM

ENT

(CO

NT’

D)

Thetablebelowpresentsthecashflow

spayableundernon-derivativefinancialliabilitiesandassetsheldformanagingliquidityriskbyrem

aining

contractualm

aturitiesatthedateoftheconsolidatedstatementoffinancialposition.Theam

ountsdisclosedinthetablearethecontractualundiscounted

cashflow

,whereastheGroupmanagestheliquidityriskbasedonadifferentbasisnotresultinginasignificantlydifferentanalysis.

Car

ryin

gU

p to

11-

33-

12ov

erA

mou

ntm

onth

mon

ths

mon

ths

1-5

year

s5y

ears

Tota

l Fi

nanc

ial l

iabi

litie

sG

H¢’

000

GH

¢’00

0G

H¢’

000

GH

¢’00

0G

H¢’

000

GH

¢’00

0G

H¢’

000

Customerdeposits

827,718

136,973

117,821

437,273

135,650

-82

7,71

8Borrowings

161,387

33,401

7,579

11,363

78,930

30,114

161,

387

Otherliabilities

42,859

6,581

231

25,212

10,836

-42

,859

----

----

----

---

----

----

----

----

---

----

----

----

----

----

---

----

---

----

----

----

-Totalfinancialliabilities

1,03

1,96

417

6,95

512

5,63

147

3,84

822

5,41

630

,114

1,03

1,96

4--

----

----

----

----

----

----

----

---

----

----

----

----

---

----

---

----

----

----

Fina

ncia

l ass

ets

CashandbalanceswithCentralBankofGhana

81,660

81,660

--

--

81,6

60InvestmentinGovernm

entsecurities

209,543

--

9,858

199,685

-20

9,54

3Depositsandbalancesduefrombankinginstitutions

90,248

90,248

--

--

90,2

48Investmentinothersecurities

35,158

--

35,158

-35

,158

Investmentinassociatecompanies

1,477

-1,477

--

1,47

7Loansandadvancestocustomers(net)

678,747

210,858

78,077

132,515

178,523

78,774

678,

747

Otherassets

73,560

-7,054

7,916

58,590

-73

,560

IntangibleAssets

11,974

11,974

-11

,974

Propertyandequipment

31,304

--

31,304

-31

,304

----

----

----

----

----

----

----

----

----

---

----

----

----

----

----

----

----

----

-To

tal fi

nanc

ial a

sset

s1,

213,

671

382,

766

85,1

3115

1,76

651

5,23

478

,774

1,21

3,67

1--

----

----

----

----

----

----

----

----

----

---

----

----

---

----

----

----

----

----

-N

et L

iqui

dity

gap

181,

707

205,

811

(40,

500)

(322

,082

)28

9,81

848

,660

363,

414

Asat31Decem

ber2011

Totalfinancialliabilities

1,031,964

176,955

125,631

473,848

225,416

30,114

1,03

1,96

4Totalfinancialassets

1,213,671

382,766

85,131

151,766

515,234

78,774

1,21

3,67

1--

----

----

---

----

----

---

----

----

---

----

----

---

----

----

---

----

---

----

----

----

Net

liqu

idity

gap

181,

707

205,

811

(40,

500)

(322

,082

)28

9,81

848

,660

363,

414

----

----

----

----

----

---

----

----

---

----

----

----

----

----

---

----

---

----

----

----

Thebank’scashflow

how

evervarysignificantlyfrom

thisanalysis.Forexample,customerdepositsaremaintainedforlongerperiodsthanthecontractual

maturitydateshencethedepositbaseisconsideredtobeofastableandlongtermnature.

Not

es to

the

Con

solid

ated

Fin

anci

al S

tate

men

tsFO

R T

HE

YEA

R E

ND

ED 3

1 D

ECEM

BER

201

1

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4. CAPITAL MANAGEMENT

Regulatory Capital

TheCentralBankofGhanasetsandmonitorscapitalrequirementsforthebank.Thebank’sobjectiveswhenmanagingcapitalare:

• Tosafeguardthebank’sabilitytocontinueasagoingconcernsothatitcancontinuetoprovidereturnsfortheshareholdersandbenefitsfortheotherstakeholders

• Tomaintainastrongcapitalbase tosupport thecurrentand futuredevelopmentneedsof thebusiness

• TocomplywiththecapitalrequirementssetbytheCentralBankofGhana

Capital adequacy and use of regulatory capital aremonitored bymanagement employing techniquesbasedontheguidelinesdevelopedbytheCentralBankofGhanaforsupervisorypurposes.TherequiredinformationisfiledwiththeCentralBankofGhanaonamonthlybasis

TheCentralBankrequireseachbankto:a) HoldtheminimumlevelofregulatorycapitalofGH¢60millionbytheendof2012b) Maintaina ratio total regulatory capital; to riskweightedassetsplus riskweightedoff balance

assetsatabovetherequiredminimumof10%

Thebank’sregulatorycapitalisanalysedintotwotiers:

• Tier 1 capital, which includes ordinary share capital, share premium, retained earnings, afterdeductionsforintangibleassets(excludingcomputersoftware),investmentsinequityinstrumentsofotherinstitutionsandotherregulatoryadjustmentsrelatingtoitemsthatareincludedinequitybutaretreateddifferentlyforcapitaladequacypurposes.

• Tier2capital,whichincludesCapitalisedRevaluationsReserves;LatentRevaluationReserves;UndisclosedReserves;RevaluationReserves;Sub-OrdinatedLoansandHybridCapitalsubjecttoalimitof100%ofTier1Capital.

Thebank’s policy is tomaintain a strong capital base soas tomaintain investor, creditor andmarketconfidence and to sustain future development of the business. The impact of the level of capital onshareholders’returnisalsorecognisedandthebankrecognisestheneedtomaintainabalancebetweenthehigherreturnsthatmightbepossiblewithgreatergearingandtheadvantagesandsecurityaffordedbyasoundcapitalposition.

Theallocationofcapitalbetweenspecificoperationsandactivitiesis,toalargeextent,drivenbyoptimisationofthereturnachievedonthecapitalallocated.Theamountofcapitalallocatedtoeachoperationoractivityisbasedprimarilyupontheregulatorycapital,butinsomecasestheregulatoryrequirementsdonotreflectfullythevaryingdegreeofriskassociatedwithdifferentactivities.Insuchcasesthecapitalrequirementsmaybeflexedtoreflectdifferingriskprofiles,subjecttotheoveralllevelofcapitaltosupportaparticularoperation or activity not falling below the minimum required for regulatory purposes. The process ofallocatingcapitaltospecificoperationsandactivitiesisundertakenindependentlyofthoseresponsiblefortheoperation,byBankRiskandBankCredit,andissubjecttoreviewbytheBankCreditCommitteeandorALCOasappropriate.

Althoughmaximisationofthereturnonrisk-adjustedcapitalistheprincipalbasisusedindetermininghowcapital isallocatedwithinthebanktoparticularoperationsoractivities, it isnot thesolebasisusedfordecisionmaking.Accountalsoistakenofsynergieswithotheroperationsandactivities,theavailabilityofmanagementandotherresources,andthefitoftheactivitywiththebank’slongertermstrategicobjectives.Thebank’spoliciesinrespectofcapitalmanagementandallocationarereviewedregularlybytheBoardofDirectors.


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4. CAPITAL MANAGEMENT – (CONT’D)

Critical accounting estimates and judgments in applying the bank’s accounting policies

Intheprocessofapplyingthebank’saccountingpolicies,managementhasmadeestimatesandassumptionsthat affect the reportedamountsof assetsand liabilitieswithin thenext financial year. Estimatesandjudgementsarecontinuallyevaluatedandarebasedonhistoricalexperienceandotherfactors,includingexpectationsoffutureeventsthatarebelievedtobereasonableunderthecircumstances.Revisionstoaccountingestimatesarerecognisedintheperiodinwhichtheestimateisrevisedandinanyfutureperiodsaffected.

Thesearedealtwithbelow:

Impairment losses on loans and advances

Thebankreviewsitsloanportfoliostoassessimpairmentregularly.Indeterminingwhetheranimpairmentlossshouldberecordedinthestatementofcomprehensiveincome,thebankmakesjudgementsastowhether there is anyobservable data indicating that there is ameasurable decrease in theestimatedfuturecashflowsfromaportfolioofloans,beforeadecreasecanbeidentifiedwithanindividualloaninthatportfolio.Thisevidencemayincludeobservabledataindicatingthattherehasbeenanadversechangeinthepaymentstatusofborrowersinabank,ornationalorlocaleconomicconditionsthatcorrelatewithdefaultsonassetsinthebank.

Impairment losses on loans and advances

Managementusesestimatesbasedonhistoricallossexperienceforassetswithcreditriskcharacteristicsandobjectiveevidenceofimpairmentsimilartothoseintheportfoliowhenschedulingitsfuturecashflows.Themethodologyandassumptionsusedforestimatingboththeamountandtimingoffuturecashflowsarereviewedregularlytoreduceanydifferencesbetweenlossestimatesandactuallossexperience.

Held -to-maturity investments

The bank follows the guidance of IAS 39 on classifying non-derivative financial assets with fixed ordeterminable payments and fixed maturity as held-to-maturity. This classification requires significantjudgement.Inmakingthisjudgement,thebankevaluatesitsintentionandabilitytoholdsuchinvestmentstomaturity.Ifthebankfailstokeeptheseinvestmentstomaturityotherthanforthespecificcircumstances-forexample,sellinganinsignificantamountclosetomaturity-itwillberequiredtoreclassifytheentireclassasavailable-for-sale.Theinvestmentswouldthereforebemeasuredatfairvaluenotamortisedcost.

Property and equipment

Criticalestimatesaremadebythedirectorsindeterminingdepreciationratesforpropertyandequipment.

Going concern

As at 31 December 2011, the bank had an accumulated revenue surplus of GH¢ 9,528,722 (2010;GH¢3,684,830).

ThedirectorsareconfidentofcontinuedProfitableperformanceinthecomingyearsinviewofthecontinuedstabilityoftheGhanaianeconomyinthefaceofdauntingchallengesarousedbythecurrentglobalfinancialcrises.TheDirectorshaveputinplacemeasurestoensureconsistentgoodperformanceandavoidrisksthatmayimpairtheQualityoftheBankscreditportfolio.


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Inviewoftheabove,thedirectorsconsideritappropriatetopreparethesefinancialstatementsonagoingconcernbasis.

5. INTEREST INCOME


GH¢’000 GH¢’000 GH¢’000 GH¢’000Loansandadvances 94,552 97,175 94,552 97,175InvestmentinGovernmentsecurities 23,155 27,931 23,155 27,931Interbankplacement 411 1,480 411 1,481Leases(includingagricinputs) 1,071 329 1,071 329

--------- --------- --------- -------- 119,189 126,915 119,189 126,916

====== ====== ===== =====

Includedwithininterestincomefromloansandadvancesfortheyearended31December2011isatotalofGH¢12,610,557(2010:GH¢10,595,061)accruedonimpairedfinancialassets.

6. INTEREST EXPENSE

Group Group Bank Bank(a)Ondeposits: 2011 2010 2011 2010

GH¢’000 GH¢’000 GH¢’000 GH¢’000

Fixed/Timedeposits 18,139 15,660 18,139 15,660SavingsDeposits 1,055 2,310 1,055 2,310Demand&Calldeposits 4,555 8,447 4,555 8,447

--------- -------- --------- --------- 23,749 26,417 23,749 26,417

--------- --------- --------- ---------

(b)Onborrowedfunds:Inter-BankBorrowing 8,106 5,463 8,106 5,463Long-TermBorrowings 7,036 5,531 7,036 5,531

--------- --------- --------- --------- 15,142 10,994 15,142 10,994

--------- --------- --------- ---------38,891 37,411 38,891 37,411===== ===== ===== =====


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7. NET FEE AND COMMISSION INCOME


Fee and commission Income GH¢’000 GH¢’000 GH¢’000 GH¢’000CommissiononTurnover 8,544 5,955 8,544 5,955FeesandCharges 24,725 10,034 24,725 10,034SaleofChequeBookCharges 1,036 680 1,036 680LoanFeeIncomes 4,038 5,048 4,038 5,048GuaranteesCharges&Commission 1,322 413 1,322 413

---------- ---------- --------- ---------Total Fee and Commission Income 39,665 22,130 39,665 22,130

---------- ---------- ---------- ---------Fee and commission ExpenseChargesforServices (2,221) (1,095) (2,211) (1,095)

---------- ---------- --------- ----------TotalFeeandCommissionExpense (2,221) (1,095) (2,211) (1,095)

--------- --------- --------- ----------Net Fee and Commission Income 37,444 21,035 37,454 21,035

===== ===== ===== =====

8. NET TRADING INCOME


Foreign Exchange GH¢’000 GH¢’000 GH¢’000 GH¢’000-Translationgainslesslosses 18,465 8,246 18,464 8,246-Transactiongainslesslosses 9,531 4,298 9,531 4,298

-------- -------- ------- ------- 27,996 12,544 27,995 12,544===== ==== ===== ====

9. OTHER OPERATING INCOME


GH¢’000 GH¢’000 GH¢’000 GH¢’000Baddebtsrecovered 6,672 2,616 6,672 2,616Dividendsfrominvestments 1,298 949 1,298 949Otherincome 9,884 14,228 9,884 10,928

------- ------- -------- -------- 17,854 17,793 17,854 14,493===== ===== ===== =====


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10. OPERATING EXPENSES

Operating expenses Group Group Bank Bank2011 2010 2011 2010

GH¢’000 GH¢’000 GH¢’000 GH¢’000

Staffcosts(Note11) 68,256 70,951 68,256 70,951Directors’fees 728 585 728 585DepreciationandAmortization 4,857 2,892 4,493 2,892OccupancyCost 16,560 6,415 19,448 6,415AuditorsRemuneration 160 85 160 85DonationsandSocialResponsibility 1,296 478 1,296 478MotorVehicleRunningExpenses 9,128 4,346 9,128 4,346General&AdministrativeExpenses 20,539 28,388 20,539 28,388Others 11,460 8,863 11,460 6,061

---------- --------- --------- ---------132,984 123,003 135,508 120,202====== ===== ====== ======

11. STAFF COSTS

Staff costs Group Group Bank Bank2011 2010 2011 2010

GH¢’000 GH¢’000 GH¢’000 GH¢’000

Salariesandwages 42,988 42,150 42,988 42,150Pensioncosts-(DefinedcontributionschemetoSSNIT) 4,898 4,188 4,898 4,188StaffProvidentFund(DefinedContributionScheme) 5,640 4,853 5,640 4,853Staffloans-marketratecharge 4,522 4,658 4,522 4,658Otherstaffrelatedcosts 10,208 15,102 10,208 15,102

-------- -------- -------- --------68,256 70,951 68,256 70,951===== ===== ===== =====


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12. EARNING PER SHARE

Earningpershareiscalculatedbydividingthenetprofitattributabletoshareholdersbythenumberofordinarysharesinissueduringtheyear.


GH¢’000 GH¢’000 GH¢’000 GH¢’000

Earnings(GH¢) 48,557 12,118 43,608 11,652-------- -------- -------- --------

Earningsattributabletoordinaryshareholders 48,557 12,118 43,608 11,652===== ==== ===== =====

NumberofsharesNumberofordinaryshares 25,000 25,000 25,000 25,000

===== ===== ===== =====

Earningspershare 1.942 0.485 1.744 0.466==== ==== ==== ====

Basic(GH¢) 1.942 0.485 1.744 0.466==== ==== ==== ====

Therewerenopotentiallydilutiveinstrumentsoutstandingatthedateofthestatementoffinancialposition.

13. CASH AND BALANCES WITH CENTRAL BANK OF GHANA


GH¢’000 GH¢’000 GH¢’000 GH¢’000

Cashonhand 27,875 20,758 27,875 20,758BalanceswithCentralBankofGhana 53,785 68,252 53,785 68,252

-------- -------- -------- --------81,660 89,010 81,660 89,010===== ===== ===== =====

Mandatoryreservedepositsrepresenting9%ofthebank’stotaldepositarenotavailableforuseinthebank’sdaytodayoperationsandarenon-interestbearing.


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Page 53

14. INVESTMENT IN GOVERNMENT SECURITIES

Held to maturity


GH¢’000 GH¢’000 GH¢’000 GH¢’000

91-DayTreasuryBill - 4,000 - 4,000TreasuryNotes - 8,678 - 8,678182-DayTreasuryBill 9,858 - 9,858 -ForeignBills 244 854 244 854

-------- ------- ------- --------10,102 13,532 10,102 13,532===== ===== ===== =====

Available for sale


GH¢’000 GH¢’000 GH¢’000 GH¢’000

2-5yearfixedratenote 200,307 152,392 200,307 152,392Fairvaluemovements (867) - (867) -

--------- ---------- --------- ----------199,440 152,392 199,440 152,392====== ====== ====== ======

Maturingwithin90daysofthedateofacquisition - 4,000 - 4,000---- ------ ----- ------

- 4,000 - 4,000=== ==== === ====

Maturingwithin1-3yearsofthedateofacquisition 209,543 161,924 209,543 161,924---------- --------- ---------- ----------

209,543 165,924 209,543 165,924====== ====== ====== ======

LongtermgovernmentbondsareclassifiedasAvailable&for-saleandcarriedatfairvaluewiththefairvaluemovementsrecogniseddirectlyinequity;whilstshort-termtreasurybillshavebeenclassifiedasloansandreceivablesandheldatamortisedcost.

Theweighted average effective interest rate on treasury bills at 31December 2011was 16.09% (2010-16.75%)andtheratefortreasurybondsat31December2011was16.09%(2010-18.72%)


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Page 54

15. DEPOSITS AND BALANCE DUE FROM BANKING INSTITUITIONS


GH¢’000 GH¢’000 GH¢’000 GH¢’000Itemsincourseofcollection 35,465 23,797 35,465 23,797Nostroaccountbalances 54,783 3,851 54,783 3,851Placementwithotherbanks - 7,200 - 7,200

-------- -------- -------- --------90,248 34,848 90,248 34,848 ===== ===== ===== =====

16. INVESTMENT SECURITIES: AVAILABLE FOR SALE


GH¢’000 GH¢’000 GH¢’000 GH¢’000At1January 11,212 6,309 11,188 6,309Additionalinvestments 8,425 1,960 8,450 1,936

------- -------- ------- -------19,637 8,269 19,637 8,245

Fairvalueadjustments 15,521 2,943 15,521 2,943-------- --------- -------- --------

At31December 35,158 11,212 35,158 11,188==== ===== ===== =====

17. INVESTMENT IN ASSOCIATES


GH¢’000 GH¢’000 GH¢’000 GH¢’000CostofInvestment 1,887 4,999 1,887 4,999Shareofresults (410) 775 775 775

------- ------- ------ -------At31December 1,477 5,774 1,477 5,774

==== ==== ==== ====

Cost of Interest Share ofInvestment Profit/(Loss) Held Result

2011 GH¢’000 GH¢’000 (%) GH¢’000ActivityVentureFinanceCompanyLimited 1,276 (556) 20 (111)AgricareLimited 1 - 40.5 -GlobalAccessSavings&LoansLimited 610 (855) 35 (300)

------- -------- -----1,887 (1,411) (411)==== ===== ===


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Page 55

17. INVESTMENT IN ASSOCIATES (CONT’D)

Cost of Profit/ Interest Share ofInvestment (Loss) Held Result

2010 GH¢’000 GH¢’000 (%) GH¢’000FidelityBankLimited 3,112 4,998 20 1,000ActivityVentureFinanceCompany 1,276 (446) 20 (89)AgricareLimited 1 (91) 40.5 (37)GlobalAccessSavings&LoansLimited 610 (282) 35 (99)

------- -------- -----4,999 4,179 775==== ==== ===

In2011,theBankdisposedoffitstwenty(20%)interestinFidelityBankLimitedtootherexistingshareholdersandrealisedagainofGH¢6,088,224asfollows:

2011 2010GH¢’000 GH¢’000

Proceedsfromsale 10,200 -Carryingvalueatdisposal (4,112) -

------- ----Profitondisposal 6,088 -

==== ==

18. INVESTMENT IN SUBSIDIARIES

Theprincipalsubsidiariesare: 2011 2010

Name of Business Country of IncorporationAmounts Invested

Percentage Interest

Amounts Invested

Percentage Interest

GH¢’000 GH¢’000

ADBPropertiesLimited Ghana 14,493 100 14,493 100JeiRiverFarmsLimited Ghana - - 1,151 77.5

-------- --------14,493 15,644===== =====

Investmentsinsubsidiariesarestatedatcostandcomprise:

Bank Bank Group Group2011 2010 2011 2010

GH¢’000 GH¢’000 GH¢’000 GH¢’000InvestmentinSubsidiaries 14,493 15,644 - -

===== ===== == ==


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Page 56

18. INVESTMENT IN SUBSIDIARIES (CONT’D)

In2011,theBankdisposedoffitscontrollinginterest(77.5%)inJeiRiverFarmsLimitedtootherexistingshareholdersandrealisedagainofGH¢1,561,791asfollows:

2011 2010GH¢’000 GH¢’000

BankProceedsfromsale 2,712 -Carryingvalueatdisposal (1,150) -

------- ----Profitatdisposal 1,562 -

==== ==

19. LOANS AND ADVANCES TO CUSTOMERS


GH¢’000 GH¢’000 GH¢’000 GH¢’000

Overdrafts 250,488 234,545 250,488 234,545loans 417,022 366,907 417,022 366,907Leasereceivable 28,091 - 28,091 -

---------- ---------- ---------- ----------Gross loans and advances 695,601 601,452 695,601 601,452

Provision for impaired loans and advances (16,854) (24,465) (16,854) (24,465)---------- ----------- ----------- -----------678,747 576,987 678,747 576,987====== ====== ====== ======

TheaboveconstituteloansandadvancestocustomersandstaffStaffloansamountedtoGH¢36,368,299(2010-GH¢27,118,469.32)Theeffectiveinterestrateonloansandadvancesat31December2011was16.75%(2010-21.95%).Loanlossprovisionratiois4.42%ofgrossadvances(2010:7.74%).GrossNon-performingloansratioperBankofGhanarequirementis6.68%(2010:11.82%).Fifty(50)largestexposures(grossfundedandnon-funded)tototalexposuresis67.95%(2010:72.26%).


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Page 57

19. LOANS AND ADVANCES TO CUSTOMERS (CONT’D)

Loansandadvancesarecarriedatamortisedcost.Therewerenoloanscarriedatfairvaluethroughprofitorloss


AnalysisBymaturity GH¢’000 GH¢’000 GH¢’000 GH¢’000Maturing:Withinoneyear 328,483 295,676 328,483 295,676OnetoThreeyears 350,264 281,311 350,264 281,311

---------- --------- --------- --------- 678,747 576,987 678,747 576,9867

====== ====== ====== ======

b) Impairment of loans and advances


GH¢’000 GH¢’000 GH¢’000 GH¢’000

At1January 24,465 82,262 24,465 82,262AmountWritten-off - (64,483) - (64,483)Additionalimpairmentchargeduringtheyear (7,610) 6,686 (7,610) 6,686

--------- --------- --------- ---------At31December 16,854 24,465 16,854 24,465

===== ====== ===== =====

c) Impairment of loans and advances

Impairmentcharge (7,610) 6,686 (7,610) 6,686===== ==== ===== ====


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Page 58

20. OTHER ASSETS

Other assets Group Group Bank Bank2011 2010 2011 2010

GH¢’000 GH¢’000 GH¢’000 GH¢’000

Advancepayment 338 4,148 338 4,148Prepayments 6,614 5,393 6,614 5,393StationeryStocks 1,872 1,299 1,872 1,299Sundryreceivables 33,803 22,647 32,774 22,647Others 30,303 24,534 22,977 21,044NationalFiscalLevy 629 977 295 382

---------- --------- --------- --------- 73,560 58,998 64,870 54,913

====== ===== ===== =====

21. INTANGIBLE ASSETS


GH¢’000 GH¢’000 GH¢’000 GH¢’000

PurchasedSoftwareCostBalance as at 1st January 2,811 1,687 2,811 1,687Acquisitions 12,590 1,124 12,590 1,124

-------- -------- --------- --------Balanceasat31stDecember 15,401 2,811 15,401 2,811

===== ==== ===== ====

AmortisationBalance as at 1st January 2,247 899 2,247 899Chargefortheyear 1,180 1,348 1,180 1,348

------- ------ ------- ------Balanceasat31stDecember 3,427 2,247 3,427 2,247

==== ==== ==== ====

CarryingAmounts 11,974 564 11,974 564===== ==== ===== ===


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Page 59

22.

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ost/

Valu

atio

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roup

)At1January2010

16,919

10,969

9,856

5,949

267

-43

,960

Additions

138

2,314

2,317

116

529

-5,

414

Disposal

--

-(1,032)

--

(1,0

32)

Write-offs

-(1,136)

(1,833)

(2,453)

(29)

-(5

,451

)--

----

----

----

---

----

----

---

----

---

----

----

----

----

---

At31Decem

ber2010

17,0

5712

,147

10,3

402,

580

767

-42

,891

====

===

===

====

===

====

===

====

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AtJanuary2011

17,057

12,147

10,340

2,580

767

-42

,890

Additions

1,178

4,699

2,238

559

799

4,143

13,6

16Disposals

(2,614)

(30)

(68)

(412)

--

(3,1

24)

Releasedondisposalofsubsidiary

(332)

-(2,324)

(331)

--

(2,9

87)

Transfers

1,037

--

-(1,291)

254

-Write-offs

(1,821)

--

--

-(1

,821

)--

----

----

----

---

----

----

---

----

---

---

----

---

----

----

-At31Decem

ber2011

14,5

0516

,816

10,1

862,

396

275

4,39

748

,575

====

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22.

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)

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epre

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At1January2010(Group)

2,020

6,313

4,763

2,829

--

15,9

25Chargefortheyear

459

2,487

1,082

509

--

4,53

7ReleasedonDisposal/R

evaluation

--

-(613)

--

(613

)Transfers

-(99)

-(1,741)

--

(1,8

40)

----

---

----

---

----

---

----

---

----

---

----

----

--At31Decem

ber2010

2,47

98,

701

5,84

598

4-

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,009

====

====

====

===

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Dep

reci

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2,479

8,701

5,845

984

--

18,0

09Chargefortheyear

363

1,688

992

479

-304

3,82


evaluation

(1,830)

(28)

(68)

(412)

--

(2,3

38)

Releasedondisposalofsubsidiary

(182)

-(1,760)

(241)

--

(2,1

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Write-off

(42)

--

--

-(4

2)--

----

---

----

---

----

----

---

---

----

----

--At31Decem

ber2011

788

10,3

615,

009

810

-30

417

,272

====

====

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====

===

===

====

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Net

Boo

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At31Decem

ber2010(Group)

14,5

773,

446

4,49

51,

596

767

-24

,882

====

===

====

====

===

====

==

At31Decem

ber2011(Group)

13,7

176,

457

5,17

61,

585

274

4,09

331

,304

====

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Agric and more...


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22.

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ank)

At 1

Jan

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201

016,622

10,969

7,689

5,718

267

-41

,264

Additions

658

2,314

2,159

16529

-5,

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Disposal

--

-(1,032)

--

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32)

Transfers

--

--

--

-TransfertoADBProperties

(17,279)

(1,136)

(1,833)

(2,452)

(29)

-(2

2,72

9)--

----

---

----

----

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----

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----

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At31Decem

ber2010

112

,147

8,01

52,

250

767

-23

,180

====

===

===

====

====

===

===

====

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At1January

112,147

8,015

2,248

767

-23

,178

Additions

-4,699

2,237

559

799

4,143

12,4

37Disposal

(1,267)

(29)

(68)

(411)

--

(177

5)Transfersto/from

ADBProperties

1,267

--

-(1,036)

-23

1Transfers

--

--

(254)

254

---

----

---

----

----

----

----

----

---

----

----

---

----

----

--At31Decem

ber2011

116

,817

10,1

842,

396

276

4,39

734

,071

====

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Page 62

22.

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At1January2010(Bank)

1,852

6,313

3,351

2,673

--

14,1

89Chargefortheyear

146

2,487

733

424

--

3,79


evaluation

--

-(612)

--

(612

)Transfers

(1,998)

(99)

-(1,741)

--

(3,8

38)

----

---

----

---

----

---

----

---

----

---

----

----

--At31Decem

ber2010

-8,

701

4,08

474

4-

-13

,529

====

====

====

===

===

====

==

Dep

reci

atio

nAt1January2011(Bank)

-8,701

4,084

742

--

13,5

29Chargefortheyear

-1,688

992

479

-304

3,46


evaluation

(669)

(28)

(68)

(411)

--

(1,1

77)

Transfers

669

--

--

-66

9--

----

----

---

----

----

---

---

----

----

----

At31Decem

ber2011

-10

,361

5,00

881

2-

304

16,4

84==

====

===

====

===

====

===

===

Net

Boo

k Va

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At31Decem

ber2010(Bank)

13,

446

3,93

01,

505

767

-9,

651

===

====

====

===

===

====

==

At31Decem

ber2011(Bank)

16,

457

5,17

71,

585

275

4,09

317

,587

===

====

===

====

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===

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Page 63

22.

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(CO

NT’

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epre

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At1January2010(Bank)

1,852

6,313

3,351

2,673

--

14,1

89Chargefortheyear

146

2,487

733

424

--

3,79


evaluation

--

-(612)

--

(612

)Transfers

(1,998)

(99)

-(1,741)

--

(3,8

38)

----

---

----

---

----

---

----

---

----

---

----

----

--At31Decem

ber2010

-8,

701

4,08

474

4-

-13

,529

====

====

====

===

===

====

==

Dep

reci

atio

nAt1January2011(Bank)

-8,701

4,084

742

--

13,5

29Chargefortheyear

-1,688

992

479

-304

3,46


evaluation

(669)

(28)

(68)

(411)

--

(1,1

77)

Transfers

669

--

--

-66

9--

----

----

---

----

----

---

---

----

----

----

At31Decem

ber2011

-10

,361

5,00

881

2-

304

16,4

84==

====

===

====

===

====

===

===

Net

Boo

k Va

lue

At31Decem

ber2010(Bank)

13,

446

3,93

01,

505

767

-9,

651

===

====

====

===

===

====

==

At31Decem

ber2011(Bank)

16,

457

5,17

71,

585

275

4,09

317

,587

===

====

===

====

===

===

====

===

22. PROPERTY AND EQUIPMENT (CONT’D)

Disposal Schedule (Bank)Land & Furniture & Motor

Building Computers Equip’t vehicles TotalGH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000

Cost 1,267 29 68 411 1,775 Accumulateddepreciation (669) (28) (68) (411) (1,176)

------ ---- ----- ------ -------Net book value 598 1 - - 599Proceeds 3,375 - 44 141 3,560

------ --- --- ---- -------Profit/(Loss) 2,777 (1) 44 141 2,961

==== == == == ====

Disposal Schedule (Group)Land & Furniture & Motor

Building Computers Equip’t vehicles TotalGH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000

Cost 2,614 29 68 411 3,122 Accumulateddepreciation (1,830) (28) (68) (411) (2,337)

------ ---- ----- ------ -------Net book value 784 1 - - 785 Proceeds 6,259 - 44 141 6,444

------ --- --- ---- -------Profit/(Loss) 5,475 (1) 44 141 5,659

==== == == == ====


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Page 64

23. CUSTOMER DEPOSIT


GH¢’000 GH¢’000 GH¢’000 GH¢’000

SavingsDeposits 157,856 119,036 157,856 119,036DemandandCallDeposits 487,579 297,780 487,579 297,780Fixed/TimeDeposits 182,283 119,263 182,283 119,263

---------- ---------- ---------- ---------- 827,718 536,079 827,718 536,079

====== ====== ====== ======

Customer deposits Group Group Bank BankMaturity analysis of customer deposits 2011 2010 2011 2010

GH¢’000 GH¢’000 GH¢’000 GH¢’000FromGovernmentandparastatals:Payablewithin90days 4,678 12,330 4,678 12,330Payableafter90daysandwithinoneyear - 186,288 - 186,288

-------- ---------- ------- ---------- 4,678 198,617 4,678 198,617-------- ---------- -------- ----------

FromPrivateSectorandindividuals:Payablewithin90days 254,794 185,644 254,794 185,644Payableafter90daysandwithinoneyear 568,247 151,818 568,247 151,818

---------- ----------- ---------- -----------823,041 337,462 823,041 337,462---------- ----------- --------- ----------

At31December 827,719 536,079 827,719 536,079====== ====== ====== ======


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Page 65

24. BORROWED FUND


GH¢’000 GH¢’000 GH¢’000 GH¢’000

OtherFinancialInstitutions 111,976 53,914 111,976 53,914CentralBankofGhana 586 722 586 722GovernmentofGhana 38,281 37,872 38,281 37,872OvernightBorrowing 10,544 128,892 10,544 128,892

--------- --------- --------- --------- 161,387 221,400 161,387 221,400

====== ====== ====== ======

25. INTEREST PAYABLE AND OTHER LIABILITIES


GH¢’000 GH¢’000 GH¢’000 GH¢’000

InterestPayable 3,384 1,803 3,384 1,803Payables 25,391 34,061 23,020 34,061Accruals 14,084 68,384 14,082 64,881

------- --------- --------- ---------- 42,859 104,248 40,487 100,745

==== ====== ===== ======

26. STATED CAPITAL

StatedCapitalismadeupasfollows: 2011 2010No. of Shares Proceeds No. of Shares Proceeds

GH¢’000 GH¢’000 IssuedforCash 900,352 450 900,352 450ForConsiderationotherthancash 638,772 320 638,772 320TransferfromIncomeSurplus 23,460,876 74,230 23,460,876 49,230

------------- --------- ------------- --------25,000,000 75,000 25,000,000 50,000 ======== ===== ======== =====


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Page 66

27. NOTES TO THE STATEMENT OF CASH FLOWS


GH¢’000 GH¢’000 GH¢’000 GH¢’000Reconciliation of profit before taxation tocash generated from operationsProfitbeforetaxation 51,113 12,763 45,903 12,265Adjustmentsfor:DepreciationandAmortization

4,857 2,892

4,494

2,892

Changeinprovision (7,610) 6,686 (7,610) 6,686(Gain)/lossondisposalofpropertyandequipment (5,656) (801) (2,961) (801)ShareofPost-tax(Profit)/LossofAssociatedCompany 411 (775) 411 (775)(Profit)/LossfromDisposalofAssociateCompanies (6,088) - (6,088) - (Profit)/LossfromDisposalofSubsidiary (1,562) - (1,562) - MovementinPPE 1,570 (6,829) 439 9,017

-------- -------- --------- --------Profitbeforeworkingcapitalchanges 37,035 13,929 33,026 29,284

(Increase)/decreaseinloans&advances (94,149) (190,233) (94,149) (190,233)(Increase)/decreaseinotherassets (14,972) (17,801) (10,367) (13,716)Increase/(decrease)incustomerdeposits 291,639 110,935 291,639 110,935Increase/(decrease)ininterestpayable&otherliabilities (51,045) 7,917 (49,912) 4,414

------------ ---------- --------- -----------Cashgeneratedfromoperations 168,508 (75,246) 170,237 (59,316)

====== ======= ====== =======


Analysis of the balances of cash Group Group Bank Bankand cash equivalents 2011 2010 2011 2010

GH¢’000 GH¢’000 GH¢’000 GH¢’000Cash&balanceswithBankofGhana 81,660 89,010 81,660 89,010Governmentsecurities 209,543 165,924 209,543 165,924Depositsandbalancesduefrombankinginstitutions 90,248 34,848 90,248 34,848

---------- ---------- ---------- ---------- 381,451 289,782 381,451 289,782

===== ====== ====== ======

Forthepurposesofthestatementofcashflows,cashequivalentsincludeshorttermliquidinvestmentswithmaturitieslessthanthreemonths.

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28. CONTIGENCIES AND COMMITMENTS INCLUDING OFF BALANCE SHEET ITEMS

Incommonwithotherbanks,thebankconductsbusinessinvolvingacceptances,guarantees,performancesandindemnities.Themajorityofthesefacilitiesareoffsetbycorrespondingobligationsofthirdparties.Thegroupalsoholdscertainsecuritiesinitsownnameonbehalfofcustomers.Thevaluesofthesesecuritiesarenotrecognisedintheconsolidatedbalancesheet.

Lettersofcreditcommitthegrouptomakepaymentstothirdparties,onproductionofdocuments,whicharesubsequentlyreimbursedbycustomers.

Guaranteesaregenerallywrittenbyabanktosupportperformancebyacustomertothirdparties.Thegroupwillonlyberequiredtomeettheseobligationsintheeventofcustomer’sdefault.

Contingenciesandcommitmentsnotprovidedforinthefinancialstatementsasat31stDecember2011inrespectoftheaboveamountedtoGH¢163.7million(2010:GH¢144.3million),asdetailedbelow:


GH¢’000 GH¢’000 GH¢’000 GH¢’000

Lettersofcredit 32,170 30,253 32,170 30,253GuaranteesandIndemnities 131,323 114,065 131,323 114,065

---------- ---------- ---------- ---------- 163,493 144,318 163,493 144,318

====== ====== ====== ======


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28 CONTINGENCIES AND COMMITMENTS INCLUDING OFF BALANCE SHEET ITEMS (CONT’D)

Capital Expenditure

Capitalcommitmentsnotprovidedforinthefinancialstatementsasat31stDecember2011wasnil(2010:nil).

Pending Legal Claims

Attheyearendthereweretwentynine(29)legalcasespendingagainstthebank.Shouldjudgmentgoinfavouroftheplaintiffs,likelyclaimsagainstthebankhavebeenestimatedatGH¢3,226,038.Noprovisionshavebeenmadeinthefinancialstatementsinrespectoftheseamounts.

Funds Under Management

InvestmentsandfundsbeingmanagedbytheGrouponbehalfofclientsamountingtoGH¢9.62million(2010:GH¢9.06million)

29 RELATED PARTY TRANSACTIONS

Parties are considered to be related if one party has the ability to control the other party or exercisesignificant influenceover theotherparty inmakingfinancialoroperatingdecisions,oroneotherpartycontrolsboth.TheBankisjointlyownedbytheGovernmentofGhanaandFinancialInvestmentTrustwithholdingsof51.8%and48.2%respectively.

At31December2011,theBankheldGH¢209,542,687(2010:GH¢165,924,199)inGovernmentSecurities(refertonote14)andhadanexposureofGH¢28,835,222(2010:GH¢25,316,614)aspartofLoansandadvancestocustomersowedbytheNationalYouthEmploymentprogram(NYEP).

Subsidiaries

DetailsofprincipalsubsidiariesareshowninNote18.

Associated Company

TheGroupprovidescertainbankingandfinancialservicestoitsassociatedcompany.Thesetransactionsareconductedonsimilartermstothird-partytransactions.

DetailsofinvestmentsinassociatedcompanyisprovidedinNote17.


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Management compensation

Theremunerationofdirectorsandothermembersofkeymanagementduringtheyearwereasfollows: Group Group Bank Bank

2011 2010 2011 2010GH¢’000 GH¢’000 GH¢’000 GH¢’000

Salaries 3,952 2,912 3,952 2,912Allowances 2,866 1,357 2,866 1,357

------ ------- ------- ------- 6,818 4,269 6,818 4,269

==== ==== ==== ====

29. RELATED PARTY TRANSACTIONS – (CONT’D)


Directors’ remuneration GH¢’000 GH¢’000 GH¢’000 GH¢’000

Feesforservicesasdirectors 728 585 728 585=== === === ===

Loans

NoloansoradvancewasgrantedtocompaniesinwhichDirectorshaveaninterestin2011.(2010;nil)

Noprovisionshavebeenrecognisedinrespectofloanstodirectorsorothermembersofkeymanagementpersonnel(oranyconnectedperson)

Interest rates charged on loans to staff are at rates below that would be charged in an arm’s lengthtransaction.Theseloansaresecuredovertheassetsfinancedoftherespectiveborrowers.

No impairment losses have been recorded against balances outstanding during the period with keymanagementpersonnel,andnospecificallowancehasbeenmode for impairment lossesonbalanceswithkeymanagementpersonnelandtheirimmediaterelativesattheperiodend.


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30. DEFINED CONTRIBUTION PLAN

Defined contribution obligations Group Group Bank Bank2011 2010 2011 2010

GH¢’000 GH¢’000 GH¢’000 GH¢’000Contributionstothestatutorydefinedcontributionpensionscheme,theNationalSocialSecurityFund 4,898

4,188 4,898 4,188

ProvidentFund 5,640 4,853 5,640 4,853------- ------- --------- -------

10,538 9,041 10,538 9,041===== ==== ===== ====

31. ASSETS PLEDGED AS SECURITY

Asat31December2011,therewerenoassetspledgedtosecureliabilities.

32. SOCIAL RESPONSIBILITY

AmountsspentonsocialresponsibilityamountedtoGH¢1,295,518(2010:GH¢605,725)whichexcludesbuildingforthe2010NationalBestFarmerofGH¢98,000(2010:GH¢75,000).


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33 PRIOR YEAR RESTATEMENT

(a) Income Recognition

In2010thebankidentifiedthatithadunderchargedinterestonanumberofloanaccountsinprioryears.ThetotalamountofGHC33,669,515wasrecognisedintheprofitandlossaccountfor2010inrespectoftheunderchargedinterest.Sincethebankdidnotearnthefullamountin2010,theamounthasbeenapportionedbetween those relating to2010and those relating toprior yearsby restating thefinancialstatementsof2010asfollows:

Apportionment GH¢’000 2002-2009 20,5842010 13,086 ---------- 33,670 ======

Effect on 2009 GH¢’000 Statement of financial positionIncreaseinloansandadvances 20,584 ----------Increase in equity 20,584 ======

Effect on 2010 GH¢’000 Statement of comprehensive incomeDecreaseininterestincome (20,584)DecreaseinNationalFiscalStabilisationLevy 1,029 ----------Decrease in profit (19,555) ======

Statement of financial positionDecreaseinloansandadvances (20,584)IncreaseinNationalFiscalStabilisationLevy 1,029 ----------Decrease in equity (19,555) ======


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33. PRIOR YEAR RESTATEMENT (CONT’D) (b) Investments in Associates and Subsidiaries In2010,thebank’sinvestmentsinassociatesandsubsidiarieswereincorrectlyclassifiedasInvestmentSecuritiesavailableforsalewithchangesinfairvaluerecognisedthroughequityasat31December2010thoughthebankheldsignficantandcontrollinginterest intheseentities.The2010financialstatementshavebeenrestatedasfollows:

Effect on 2010 GH¢’000 Statement of comprehensive incomeIncreaseinbank’sshareofassociatesprofit 775IncreaseinNationalFiscalStabilisationLevy (39) ------Increase in profit 736 ===

Statement of financial positionDecreaseinInvestmentinOtherSecurities (20,643)IncreaseinInvestmentinAssociates 4,999IncreaseinInvestmentinSubsidiaries 15,644DecreaseinAFSreserves (3,326) ---------Decrease in equity (3,326) =====

(c) LONG OUTSTANDING BALANCES Duringtheperiod,certainlongoutstandingitemsdatingasfarbackas2002relatingtoCashandbankbalanceswithBOG,sundrydebtorsandsundrycreditorsbalanceswereidentified.Duetothehighprobabilityoftheunrecoverabilityoftheseoutstandingitems,provisionshavebeenmadeonthesebalancesinthefinancialstatementsbyrestatingthe31December2009and31December2010financialstatementsasfollows:

Effect on 2009 GH¢’000 StatementoffinancialpositionDecreaseinCashandbankbalanceswithBOG 3,628DecreaseinSundryCreditors (11,848)DecreaseinSundryDebtors 40,871 ----------Decrease in equity 32,651 ======


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33. PRIOR YEAR RESTATEMENT (CONT’D)

Statement of comprehensive incomeIncreaseinotherexpenses (1,871)DecreaseinNationalFiscalStabilisationcharge 94 ---------Decrease in profit (1,777) =====

Effect on 2009 GH¢’000Statement of financial positionDecreaseinCashandbankbalanceswithBOG (626)DecreaseinSundryCreditors 1,155DecreaseinSundryDebtors (2,400)DecreaseinNationalFiscalStabilisationlevy 94 ---------Decrease in equity (1,777) =====

34. NATIONAL FISCAL STABILISATION LEVY

TheNationalFiscalStabilisationLevyAct,2009,becameeffectivefrom1July2009toDecember2011.UndertheAct,anadditional5%levywillbechargedonprofitbeforetaxandispayablequarterly. 35. REGULATORY DISCLOSURES

(i) Non–Performing Loans Ratio

Percentageofgrossnon-performingloans(“substandardtoloss”)tototalcredit/advancesportfolio(gross):6.68%(2010:11.82%).

(ii) Capital Adequacy Ratio

ThecapitaladequacyratioattheendofDecember2011wascalculatedatapproximately10.76%(2010:6.52%).

(iii) Regulatory Breaches

Therewerenobreacheswithrespecttostatutoryrequirements.


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BRANCHES & AGENCIES

ASHANTI REGION

1. Ashanti Bekwai BranchPMB,AshantiBekwaiTel:032-2420315,2420357Fax:032-2420315

2. Ejura FLOc/oP.O.Box3841,KumasiTel:032-2322042

3. Kumasi-Adum BranchP.O.Box3841,KumasiTel:032-2039854,2031537,2021521,2024333Fax:032-2026215

4. Kumasi-Amakom BranchP.O.BoxAH9428,KumasiTel:032-2049576,2049579,2032982Fax:032-2049577

5. Kumasi-Central Market BranchP.O.BoxR-204,KumasiTel:032-2033461,2033455,2033914,2033913Fax:032-2033465

6. Kumasi-Nhyiaeso BranchP.O.BoxAH9428,KumasiTel:032-2039752,2190006Fax:

7. Kumasi-Nhyiaeso Executive BankingP.O.BoxAH9428,KumasiTel:032-2190008,2035460Fax:032-2035461

8. Kumasi-Prempeh II St. Branch P.O.BoxKS8494,KumasiTel:032-2045263,2045275,2045276Fax:032-2045269

9. New Edubiase Branch P.O.Box33,NewEdubiase Tel:033-2194674,2192202

10. Obuasi BranchPrivateMailBag,ObuasiTel:032-2540701,2540700Fax:032-2540672

HEAD OFFICE

37IndependenceAvenueP.O.Box4191,AccraTel:(030)2770403,2762104,2783122,2784394Fax:(030)2784893,2770411E-mail:[email protected]:www.adb.com.ghToll-free:0800-10034

ZONAL OFFICES

1. Retail Performance Monitoring – Central Zone P.O.Box3841KumasiTel:032-2045262,2045260Tel(LegalDept):032-2045268Tel(CorporateBanking):032-2045273Tel(DFU):032-2045265Fax:032-2045270

2. Retail Performance Monitoring – Southern Zone P.O.BoxDS2270,DansomanTel:030–2220993,2230440,2230439Fax:030-2220993

3. Retail Performance Monitoring – Northern Zone P.O.Box376,TamaleTel:037-2022629/2022938Fax:037-2023634

ADB Branch Network

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BRONG-AHAFO REGION

11. Atebubu BranchP.O.Box18,AtebubuTel:032-2099568,032-2099574Fax:035-2622026

12. Berekum BranchP.O.Box209,BerekumTel:035-2222104,2222153,2222507Fax:035-2222104

13. Dormaa Ahenkro Branch PMB,DormaaAhenkro Tel:035-2322037,2322165 Fax:035-2322251

14. Goaso Branch P.O.Box72,Goaso Tel:035-2091918,2094370,024-4312134

15. Kenyasi BranchP.O.BoxKN2,KenyasiTel:035-2094858,2094859

16. Kwapong BranchPrivateMailBag,KwapongTel:035-2192102,2192033

17. Nkoranza BranchP.O.Box70,NkoranzaTel:035-2092074,2097313

18. Sunyani Branch P.O.Box110,Sunyani Tel:035-2027192,2027075

19. Techiman BranchP.O.Box16,TechimanTel:035-2091080,2091686,2091312

20. Techiman AgencyP.O.Box16,TechimanTel:035-2091312Fax:035-2522304

CENTRAL REGION

21. Agona Swedru Branch P.O.Box200,AgonaSwedru Tel:033-2020348,2020522Fax:033-2021683

22. Assin Fosu Branch P.O.Box151,AssinFosu Tel:033-219220,2192203,2192205

23. Buduburam Agency c/oP.O.Box11957,Kaneshie Tel:030-2277092,2277109

24. Cape Coast Branch P.O.Box160,CapeCoast Tel:033-2132834,2132836,2132563Fax:033-2132836

25. Kasoa BranchP.O.Box4191,AccraTel:030-2863346,2863347,020-7848993Fax:030-2863347

26. Mankessim BranchPMBMK286,MankessimTel.034-2093015

27. UCC BranchP.O.Box160,CapeCoastTel:033-2131989,2131806,2137791Fax:033-2130630

28. Winneba Agencyc/oP.O.Box200AgonaSwedru

EASTERN REGION

29. Asiakwa BranchC/OP.O.Box4191,AccraTel:030-2962145,2962144

30. Juapong BranchP.O.Box31,JuapongTel:034-2091530,2094299,2094376

31. Kade Branch P.O.BoxKD234,KadeTel:030-2963285,2963286

32. Koforidua Branch P.O.Box124,KoforiduaTel:034-2022292,2022739Fax:034-2022292

33. Nkawkaw Branch P.O.Box86,Nkawkaw Tel:034-3122041,3122068,3122028,3122457 Fax:034–3122446

34. Suhum BranchP.O.Box229,SuhumTel:034-2522373Fax:034-2522374

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GREATER-ACCRA REGION

35. Abeka La-Paz Branch P.O.Box4191,Accra Tel:030-2950925,028-9535075Fax:030-2244649

36. Accra Makola Branchc/oP.O.Box4191,AccraTel:030-2668265,2674308,2675596Fax:030-2668740

37. Accra New Town BranchP.O.Box15AccraNewTownTel:030-2220989,2220986Fax:030-2220990

38. Achimota BranchP.O.BoxAT997AchimotaMarket,AccraTel:030-2420038,2420036Fax:030-2420038

39. Adabraka BranchP.O.Box452,AccraNewTownTel:030-2221047,2242417,2242420Fax:030-2221047

40. ADB House BranchP.O.Box4191,AccraTel:030-2785473,2783730Fax:030-2783590

41. Ashaiman Branchc/oP.O.Box692,TemaTel:030–3308011,3308063Fax:030-3308094

42. Cedi House BranchPMB,MinistryPostOffice,AccraTel:030-2662745,2662519Fax:030-2662951

43. Danquah Circle BranchP.O.Box4191,AccraTel:030-2215777

44. Danquah Circle Executive BankingP.O.Box4191,AccraTel:030-2215777

45. Dansoman Branch P.O.BoxDS2270,Dansoman,AccraTel:030-2312414,2312415,2318065,2311636 Fax:030-2318064

46. Gulf House BranchP.O.Box4191,AccraTel:030-2506201,2506202,2506203Fax:030-2506220

47. Kaneshie Branch P.O.Box11957 Kaneshie,AccraTel:030-2688399,2688400,2688411-14Fax:030-2688415

48. Korkordzor Branch c/oP.O.Box11957, Kaneshie,Accra Tel:030-2853081,2853083,2850428,2850429Fax:030-2850428

49. Madina BranchP.O.Box4191,Accra Tel:030-2518455,2518457Fax:030-2518456

50. Nima BranchP.O.BoxNM4,Nima,AccraTel:030-2264510,2264512

51. Nungua Branch P.O.Box875,TNE,Accra Tel:030-2712660,2717078,2717079Fax:030-2717078

52. Osu Branch P.O.Box2502,Osu,Accra

Tel:030-2782385,2779696 Fax:030-2782386

53. Ring Road Central Branch P.O.Box01557,Osu,Accra Tel:030-2228121,2229110,2239409 Fax:030-2227280

54. Spintex Road BranchP.O.Box4191,AccraTel:030-2816212,2816213,2816215Fax:030-2816214

55. Tema Branch P.O.Box692,TemaTel:030-3216100,3204305,3203371,3206396Fax:030-3203372

56. Tema-Mankoadze AgencyP.O.Box875,TemaTel:030-3204756,3200041

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57. Teshie BranchP.O.BoxTNE875,AccraTel:030-2712549,2712664Fax:030-2712549

NORTHERN REGION

58. Bole BranchP.O.BoxC/OADB,BoleTel:037-2092172/2092170

59. Buipe BranchP.O.Box376,TamaleTel:037-2092171Fax:N/A

60. Savelugu BranchC/oP.O.Box376,TamaleTel:037-2095822,2095820

61. Tamale-Aboabo BranchP.O.Box376,TamaleTel:037-2026242,2023700Fax:037-2026242

62. Tamale-Kaladan BranchP.O.Box376,TamaleTel:037-2202214Fax:037-2202214

63. Tamale-Kaladan Executive BankingP.O.Box376,TamaleTel:037-2202214Fax:037-2202214

64. Tamale-Main Branch

P.O.Box376,Tamale Tel:037-2022629,2022938,2027339Fax:037-2023634

65. Walewale BranchP.O.Box19,WalewaleTel:037-2095818,2095816Fax:037-2095818

66. Yendi BranchC/oP.O.Box376,TamaleTel:0244512604,0244215539,0240665189

UPPER-EAST REGION

67. Bawku Branch P.O.Box85,Bawku Tel:038-2222330,2222298,2222299Fax:038-2222330

68. Bolgatanga Branch P.O.Box159,Bolgatanga Tel:038-2022321,2022439,2022172,2022178 Fax:038-2023443

69. Navrongo BranchP.O.Box47,NavrongoTel:038-2122200,2122204,2122010

UPPER-WEST REGION

70. Tumu Branch C/oP.O.Box130,Wa Tel:039-2022869

71. Wa Branch P.O.Box130,WaTel:039-2022095,2022090,2022342Fax:039-2022090

VOLTA REGION

72. Denu BranchP.O.Box31,DenuTel:036-2530612,2530313,2530613Fax:036-2530612

73. Ho BranchP.O.BoxHP1277,HoTel:036-2028250,2028284,2028289Fax:036-2028274

74. Hohoe Branch P.O.Box143,Hohoe Tel:036-2722027,2722008Fax:036-2722951

75. Kpando BranchP.O.Box10,KpandoTel:036-2350939,2350941,2350942Fax:036-2350940

76. Kpeve Branchc/oP.O.Box10,KpandoTel.036-2095097

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77. Nkwanta BranchP.O.Box40,NkwantaTel:054-4338198,054-4338199

78. Sogakope BranchPrivateMailBag,SogakopeTel.036-2095710,028-9556697Fax:036-2095710

79. Vakpo FLOc/oP.O.Box27Hohoe

WESTERN REGION

80. Agona Nkwanta BranchP.O.Box19,AgonaNkwantaWesternRegionTel:030-2962148

81. Bonsu Nkwanta Branchc/oP.O.Box3841,KumasiTel.032-2190715

82. Enchi Branchc/oP.O.Box3841,KumasiTel:031-2622124Fax:031-2622082

83. Sefwi Essam Branchc/oP.O.Box3841,KumasiTel:024-0813416

84. Sefwi Wiawso Branch P.O.Box108,SefwiWiawso Tel:024-3081183,031-2092093/2094487

85. Takoradi BranchP.O.Box600,TakoradiTel:031-2029049,2029060,2029068,2029080,2028488Fax:031-2029060

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Bank Currency

Bankers Trust Company USDP.O.Box318 ChurchSt.Station,NewYork N.Y.10008,USA

BHF-BANK EURO P.O.Box110311,Brockenheimer Landstrasse10 D-600Frankfurt1,Germany

Citibank N.A. USDEuropeanTradeFinanceGroupCottonCentre,HaysLaneLondonSE12BXUnitedKingdom

Citibank, N.A. USD111WallStreet,NewYorkN.Y.10043,USA

Commerzbank AG EUROInternationalBankRelationsNeueMainzerStrass32-36FrankfurtAMMain,Germany

Ghana International Bank USD 69CheapsideStreet EUROLondonEC22BB GBPUnitedKingdom

CORRESPONDENT BANKS ABROAD

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Notes

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