Sekyere Rural Bank Achieves Remarkable Growth Across All Metrics

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Remarkable Growth in Financial Indicators

Sekyere Rural Bank Plc has demonstrated impressive growth across all financial indicators in the 2024 year under review. The bank reported a profit before tax of approximately GH¢5.76 million, a significant improvement from the technical loss of GH¢3.94 million recorded in the previous year. This represents a remarkable 246% increase in profitability.

The growth in profits is attributed to improved revenues generated from operations and effective management of recurrent expenditures. The Board of Directors commended the management and staff for their efforts, highlighting a profit growth of GH¢1.81 million. They urged continued hard work to further enhance the bank’s profitability and increase shareholder investments.

The directors were also recognized for their strategic direction and decisive actions that contributed to this success. Despite the positive performance, the Board of Directors was unable to declare or pay dividends for the 2024 financial year due to the Bank of Ghana’s directive requiring written approval before any dividend can be declared.

However, shareholders have been assured that with the strategies in place to improve the Capital Adequacy Ratio (CAR), which has led to high profit levels, it is expected that dividend payments will resume soon.

Stated Capital and Shareholders Funds

In the 2024 year under review, the Bank’s Stated Capital increased by 2% from GH¢2.34 million in 2023 to over GH¢2.39 million in 2024. Shareholders’ Funds also saw a substantial increase of 42%, rising from about GH¢7 million in 2023 to approximately GH¢10 million in 2024. This increase was driven by the unprecedented profits achieved.

To accelerate growth and expand operations, the bank is strategizing to attract new shareholders and encourage existing ones to invest more in the Stated Capital. This move aims to enhance profitability and benefit all stakeholders.

The Chairperson of the Board of Directors, Ms. Constance Asamoah, announced these developments at the Bank’s 36th Annual General Meeting of shareholders held last Thursday at the Kronum Methodist Church near Kumasi.

Operational Environment

According to Ms. Asamoah, Ghana’s real Gross Domestic Product (GDP) grew by 3.6% year on year in the fourth quarter of 2024, driven by sectors such as Information and Communication, Financial and Insurance Activities, and Manufacturing. The annual inflation rate in Ghana for December 2024 stood at 23.8%, compared to 23% in the same period in 2023. The Bank of Ghana Monetary Policy Rate ended the year at 27%, down from 30% in 2023, while the 91-Day Treasury bill rate ended at 27.7%.

Despite macroeconomic challenges and high inflation, rural and community banks (RCBs) played a crucial role in supporting the economy, particularly in advancing financial inclusion and providing credit to the SME sector. These institutions demonstrated resilience and innovation, positively impacting local economies and underserved communities.

Key Financial Indicators

| Indicators | 2024 (GHS) | 2023 (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

Sekyere Rural Bank continues to support various state institutions and stakeholders within its catchment areas. During the year under review, the bank supported projects involving Traditional Councils, the Ghana Education Service (GES), the Ghana Police Service, government health facilities, and Farmers’ Day Celebrations. A total of GH¢150,889.00 was spent on CSR programmes for local communities.

The Board Chairperson emphasized the bank's commitment to social responsibility and its intention to continue supporting projects and engaging in environmentally friendly activities in the future.

Commendation and Advice

Leonard Maasang, the Kumasi Manager of ARB Apex Bank, delivered an address on behalf of Managing Director Alex Kwasi Awuah. He congratulated the shareholders, Board, and Management of Sekyere Rural Bank for their improved operational performance. While acknowledging the achievements, he advised the management to focus on aggressive digital transformation and agency banking.

Mr. Awuah challenged the bank to aim for at least 50% of transactions to be conducted digitally within the next 36 months and to roll out a network of at least 200 active bank agents by the end of 2026.

Outlook

The Chief Executive Officer of the Bank, Michael Aidoo, stated that the bank would continue to provide good services and develop need-based products for its customers. He affirmed that Sekyere Rural Bank remains 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 emphasized that the strategic focus remains on enhancing customer experience, strengthening risk management, and investing in staff development, which he believes will further boost the bank’s profitability.