- records 88.2% growth in profit
- shareholders get 70% returns on investment
By Seth KRAMPAH, Bogoso
Fiaseman Rural Bank PLC at Bogoso in the Prestea Huni-Valley district of the Western Region has posted exceptional operational growth in all financial indicators for the year 2024 under review.
Operational Performance – Profitability & Dividend
The bank has posted impressive and unprecedented pre-tax profit of approximately GH¢ 69.6 million in 2024 as against about GH¢ 37million in 2023 representing an impressive growth of 88.19%. The second highest recorded in the rural banking sector so far. This significant profit was a result of the board, management and staff’s shrewd leadership style to ensure better returns for all stakeholders.
This remarkable growth in profitability for the year under review has compelled the Board to propose the payment of a dividend per share of GH¢0.14p amounting to GH¢13,873,017. 06 for the year under review as against GH¢0.13 per share amounting to GH¢7,369,779 the previous financial year representing 70% returns on shareholders’ investment highest so far in the industry.
Other Indicators
The bank recorded Total Deposits of GH¢830.7 million, representing a percentage increase of 78.63 % from approximately GH¢465.2 million in 2023 – with Total Assets of the bank hitting approximately GH¢961.1 million compared to the previous year at about GH¢537million, which represents a percentage growth of 79.1
Total Loans and Advances for the period under review also moved up, by 28.1 percent from approximately GH¢230million in 2023 to about GH¢295 million in 2024.
The bank’s Stated Capital grew from GH¢8,193,571 in 2023 to GH¢17,369,710 in 2024 representing 111.99%, which is high above the regulatory requirement of GH¢1million.
Meanwhile shareholders have further been urged to buy more shares and enjoy the benefits of investments in the coming years.
The Bank’s investment in Treasury Bills and other investments increased from GH¢208.6million in 2023 to GH¢502million representing a growth of 140.60%.
Out of the total investment in Government Securities GH¢20, 909,816 constituted bonds which were affected by the DDEP.
BONUS SHARES
At the Bank’s 35th AGM in 2023, a decision was taken on the issuance of Bonus Shares. The Board contracted a consultant to come out with scientific method of how best they could come out with a model that would benefit all Shareholders especially those who invested in the Bank when it was established in 1983.
SHARES VALIDATION
The Consultant was further tasked to value the Bank’s share price to determine the competitive price per share and came out with various prices and the Board is proposing that the prices per share be priced at GH¢1.00.
This decision was arrived at by taking into consideration the sacrifices of the Bank’s Shareholders who helped in the establishment of the Bank so that if anyone wants to sell his/her shares they can sell it at GH ¢1.00 instead of GH¢ 0.20p
The Chairman of the Board of Directors, Mr Frank Amo Owusu announced these and more at the Bank’s 36th Annual General Meeting shareholders held recently at Bogoso.
Operational Environment
According to him, the fiscal outcome for 2024 deteriorated, with primary and overall fiscal deficits exceeding targets at 3.7% and 7.7% of GDP, respectively, due to accumulating arrears and unbudgeted spending.
Revenues and grants totaled 15.6% of GDP, while expenditures (commitment basis) rose to 23.3% of GDP. Nevertheless, the public debt to GDP ratio declined to 70.5% due to the haircut on Eurobonds and strong GDP growth.
The banking sector remained stable in 2024 with assets growing by 33.8% and stable capital adequacy ratios rose although the non-performing loan ratio rose to 21.8% by end year.
Continued profit growth recapitalization and stringent credit standards are essential for full recovery. (Source: World Bank Group).
Corporate Social Responsibility
The Bank spent over GH₵211,648.50 on Corporate Social Responsibility (CSR) in 2024, supporting health, education, sports, agriculture, and other social causes.
Outlook
In an interview with Business & Financial Times, Chief Executive Officer of the Bank, Nana Dr Godfred Frank Opoku who is also the Adwumfourhene of Otumfuo Osei Tutu II said the Bank would continue to forge ahead in the pursuit of leveraging its market share in its catchment area and sparing no effort to ensure that the Bank opens new branches within the coming years.
He emphasized that it is their belief to continue to put in measures which would enable the Bank to create sustainable returns for Shareholders going into the future.
He further stressed that technology could not be left in the gallery of modern banking and for that matter they would explore other business opportunities in the digital space and ensure that they are not taken by events in cyber security environment.
In view of the above, ARB APEX Bank has come up with a short code *992# which would allow all customers to transfer funds from their accounts to their wallets on all networks, Pay bills, Register Accounts amongst others conveniently.
Also, in collaboration with ARB APEX Bank the Bank has rolled out Agency Banking within its catchment area and urging their cherished customers and Shareholders to take advantage of this innovative initiative to enhance their banking and financial needs.
