Otuasekan Rural Bank has reported substantial financial gains for 2024, posting profit before tax of approximately GH₵13.1 million against GH₵5.2 million in 2023, representing 153.1 percent growth. The Sekyere West District institution has proposed dividend payments of GH₵2,000,931 equivalent to GH₵0.1585 per share, delivering a 31.7 percent return on the bank’s current share price of GH₵0.50.
The bank announced these results at its 36th Annual General Meeting held in Mampong Kofiase, with Board Chairman Kwadwo Nkansah-Fordjour attributing the performance to improved operational revenues and prudent management of expenses across the board, management, and staff levels. The GH₵7.9 million profit growth translates into substantial shareholder value creation, with the board commending management for strategic execution whilst urging continued focus on expanding profitability and shareholder investment.
Institutional strengthening accompanied profit expansion. Shareholders’ Funds increased by 23.33 percent, rising from approximately GH₵15.9 million in 2023 to GH₵19.6 million in 2024. The bank’s Stated Capital grew by 17.11 percent, from GH₵3.4 million to just over GH₵4 million, exceeding the Bank of Ghana’s regulatory threshold substantially and positioning the bank as well-capitalised.
The balance sheet demonstrated broad-based growth across key metrics. Total Assets expanded by 54.29 percent to GH₵335.9 million from GH₵217.7 million in 2023. Deposits surged by 53 percent to GH₵293.8 million, reflecting increased customer confidence and the bank’s effectiveness in mobilising savings. Investment holdings more than doubled, increasing by 93.12 percent to GH₵207.7 million, whilst advances grew by 10.68 percent to GH₵59.4 million, indicating sustained lending to viable economic ventures within the catchment area.
The bank achieved this performance amid a challenging macroeconomic environment characterised by high inflation and monetary policy tightness. Ghana’s real GDP expanded by 3.6 percent year-on-year in the fourth quarter of 2024, driven largely by information and communications, financial and insurance activities, and manufacturing. However, inflation remained elevated at 23.8 percent as of December 2024, whilst the Bank of Ghana maintained the Monetary Policy Rate at 27 percent, creating tight financial conditions that pressured smaller institutions.
Rural and community banks collectively played a vital role in Ghana’s financial inclusion and small enterprise financing during this period. The sector demonstrated resilience despite macroeconomic headwinds, with total banking sector assets growing by 33.3 percent to GH₵323.2 billion as of June 2024. The Capital Adequacy Ratio with reliefs stood at 14.0 percent in December 2024, up from 13.9 percent in December 2023, indicating improved sector capitalisation.
The Bank of Ghana granted exceptional approval for Otuasekan Rural Bank to distribute the proposed dividend, a significant step given prior regulatory restrictions on dividend payments during periods of economic strain. The approval signals regulatory confidence in the bank’s financial position and capacity to reward shareholders whilst maintaining operational resilience.
Corporate social responsibility remained embedded in the bank’s operations. The institution spent GH₵170,120 on community development projects during 2024, supporting traditional councils, Ghana Education Service facilities, Ghana Police Service, government health facilities, and Farmers’ Day celebrations within its operational catchment.
The Kumasi Manager of ARB Apex Bank, Leonard Maasang, praised the bank’s performance on behalf of the apex bank’s managing director, describing Otuasekan Rural Bank as a model of growth through prudence and innovation. He commended the Board for strategic leadership and management for operational efficiency and integrity, noting that the 2024 results demonstrate that community banking can thrive through disciplined execution even amid macro stress.
Maasang urged the bank to deepen its adoption of digital banking tools including agency banking, mobile platforms, and GhanaPay solutions. He emphasised that digital transformation extends beyond technology infrastructure to building customer convenience and trust, particularly among younger demographics and informal sector workers increasingly preferring mobile-based financial services.
The Bank of Ghana’s Capital Adequacy Ratio framework continues to guide rural bank development, with the ratio representing a key regulatory metric measuring capital strength relative to risk-weighted assets. Otuasekan Rural Bank’s strengthened capital position provides flexibility for strategic expansion whilst maintaining buffers against potential shocks.
Chief Executive Officer John De-Graft Owusu described the bank as a pillar of financial resilience and community empowerment, emphasising that the performance reflects prudent management, operational efficiency, and stakeholder trust. He outlined strategic priorities including expanded digital banking platforms, deepened financial inclusion, enhanced customer experience, strengthened risk management, and staff capacity development.
The bank is strategising to attract additional shareholders whilst encouraging existing shareholders to increase their holdings. This shareholder mobilisation strategy aims to accelerate growth and fund operational expansion to enhance profitability.
Source: newsghana.com.gh
