Sekyere Rural Bank Plc, at Jamasi in the Sekyere South District of Ashanti Region, has posted remarkable growth in all financial indicators in the 2024 year under review.
The Bank recorded profit before tax of approximately GH¢ 5.76 million in the year under review as against a technical loss of GH¢ 3.94 million in the previous year representing 246% impressive growth.
The rise in profit has been attributed to improved revenues generated from operations and prudent management of recurrent expenditures both on the part of the Board, Management and the entire Staff.
By this, the Board of Directors has congratulated management and staff for the remarkable GH¢1.81million profit growth which translates in absolute terms and have therefore been urged to work assiduously towards increasing the Bank’s profitability to increase shareholders’ investments. Directors of the bank have also been commended for their strategic direction and decisiveness in achieving this remarkable success.
Dividend
The Board of Directors unfortunately could not obtain approval from the Bank of Ghana to declare and pay dividend for the 2024 financial year. This decision follows the Bank of Ghana’s directive (Notice No. BG/GOV/SEC/2021/06) to all banks in Ghana not to declare or pay dividend without their written approval.
However, the shareholders have been assured that, giving the strategies board and management have put in place to correct the Capital Adequacy Ratio (CAR), which has resulted in high profit levels being recorded, it will not take long for the Bank to start payment of dividend.
Stated Capital and Shareholders Funds
In the 2024 year under review, the Bank’s Stated Capital grew marginally by 2% from GH¢2.34million in 2023 to a little over GH¢ 2.39 million in 2024. Shareholders’ Funds also increased by 42 % in 2024 from about GH¢7million in 2023 to approximately GH¢10 million. The increase resulted from unprecedented profit achieved.
The Bank because of the insignificant growth in share capital is strategizing to sign up new shareholders, and also have existing shareholders invest more into the Stated Capital of the Bank. This will enable the growth of the Bank to be accelerated and ensure that the Bank is able to expand its operations and enhance its profitability to the benefit of cherished shareholders.
The Chairperson of the Board of Directors Ms Constance Asamoah announced these and more at the Bank’s 36th Annual General Meeting of shareholders held last Thursday at the Kronum Methodist at Kronum, near Kumasi, in Ashanti Region.
Operational Environment
According to her, Ghana’s real Gross Domestic Product (GDP) grew by 3.6% year on year in fourth quarter 2024 (October to December) according to the Ghana Statistical Service. The growth was largely driven by Information and Communication, Financial and Insurance Activities and Manufacturing.
The annual inflation rate in Ghana for December 2024 was 23.8% as against 23% during the same period in 2023. The Bank of Ghana Monetary Policy Rate ended the year 2024 at 27% as against 30% in 2023. The 91-Day Treasury bill rate also ended the year with 27.7%
In the 2024 year under review, Ghana’s rural and community banks (RCBs) played a pivotal role in bolstering the nation’s economy, particularly in advancing financial inclusion and providing credit to the Small and Medium-sized Enterprises (SMEs) sector. Amidst the macroeconomic challenges, these banks demonstrated resilience and innovation, significantly impacting local economies and underserved communities.
In spite of the challenging macroeconomic environment coupled with the high inflationary rate that pertained during the reviewed year, the bank managed to pull a remarkable operational performance in all key financial indicators as indicated in the table.
|
Indicators |
2024
Amount (GHS) |
2023
Amount (GHS) |
% Change |
| Deposits | 295,351,434 | 187,765,133 | 57 |
| Investments | 202,813,268 | 108,925,423 | 86 |
| Loan /Advances | 61,310,744 | 52,849,797 | 16 |
| Total Assets | 312,291,818 | 201,576,201 | 55 |
| Share Capital | 2,390,108 | 2,340,368 | 2 |
| Shareholders’ Funds | 9,965,897 | 7,003,274 | 42 |
| Profit before Tax | 5.767,213 | (3,954,306) | 246 |
Corporate Social Responsibility
The Bank continues to provide support to various state institutions and stakeholders within its catchment areas. Some projects supported within the bank’s catchment areas during the year under review included that of the Traditional Councils, Ghana Education Service (GES), the Ghana Police Service, some government health facilities and support for Farmers’ Day Celebration. For the year 2024 and a total of GH¢150,889.00 was spent on CSR programmes for local communities.
The Board Chairperson stressed that the bank is socially responsible and would continue to support projects and engage in environmentally friendly activities in the years ahead.
Commendation / Advice
The Kumasi Manager of ARB Apex Bank, Leonard Maasang who delivered an address on behalf of the Managing Director, Alex Kwasi Awuah, congratulated the shareholders, Board, and Management of the Bank for the improved operational performance of the Bank.
While congratulating Sekyere Rural Bank for its commendable operational performance, he has however advised management to engage in aggressive digital transformation and agency banking.
According to him, it has now become obvious that the future of rural banking belongs to the mobile phone in the farmer’s pocket. While Sekyere Rural Bank has made commendable progress with mobile money interoperability and the recently introduced dedicated *992# USSD Mobile Banking service, there is the need for an acceleration in signing on customers for this novel service in the sector.
Mr Awuah challenged the bank to aim for at least 50 percent of transactions to be conducted digitally within the next 36 months and to roll out a robust network of at least 200 active bank agents by the end of 2026.
Outlook
The Chief Executive Officer of the Bank, Michael Aidoo, tells Business & Financial Times, in an interview that the Bank would continue its good services and develop need-based products for its customers.
He has also affirmed that Sekyere Rural Bank continues to stand as a pillar of financial resilience and community empowerment.
“We are poised to make significant strides in expanding our digital banking platforms, deepening financial inclusion, and supporting local enterprises, especially in underserved areas. These achievements are a testament to our commitment to innovation, transparency, and sustainable growth.”
Mr Aidoo said he and his team are energized by the opportunities that lie before them. He stressed that their strategic focus remains anchored on enhancing customer experience, strengthening risk management framework, and investing in staff capacity development which he believes will enhance the bank’s profitability.
The post Sekyere Rural Bank records impressive growth in all indicators appeared first on The Business & Financial Times.
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