By Elizbeth PUNSU, Kodie
Kwabre Area Rural Bank PLC in the Afigya Kwabre South District of the Ashanti Region, has put up an outstanding operational performance, recording a whopping 383% growth in profit before tax for the year 2024 under review.
This marks the first time in the Bank’s six-year history that it has recorded such significant growth. In 2024, the Bank posted a net profit of GH₵775,346, a sharp turnaround from a net loss of GH₵274,176 in 2023, representing an increase in profit before tax of a little over GH₵1million.
Operational Performance
Presenting his report to the shareholders at the 5th Annual General Meeting (AGM), Chairman of the Board of Directors, Louis Kwachie, described the growth trajectory of the Bank in the year 2024 under review as extraordinary.
The Bank’s total assets increased from more than GH₵7million in 2023 to over GH₵15million in 2024 representing a 112 % increase from the previous year. The increase, according to the Board Chairman was mainly due to the increase in investment security, cash and cash balance, loans and advances, and long-term investments of 169 %, 78%, 52%, and 51%/ respectively during the financial year.
Total Deposits of the Bank also increased by 99% from a little over GH₵6.6m in 2023 to over GH₵13.1million in 2024.
The total investment of the Bank grew by 169 percent from approximately GH₵3.8million in 2023 to over GH₵10.1million in 2024.
The loans and advances grew by 52% from over GH₵1.6million in 2023 to approximately GH₵2.5million in 2024. In addition, the stated capital of the Bank increased from a little over GH₵1.9million in 2023 to over GH₵2.2million in 2024 representing a growth of 18%.
Mr. Kwachie attributed the success to the hard work and dedication of staff, as well as the continued trust and loyalty of customers.
Operational Environment
According to the Board Chairman, Ghana’s economy experienced some significant level of growth in terms of GDP by 5.7% in the year 2024. Despite the growth the struggles of the cedi against major foreign currencies affected the cost of business operations in the year under review.
The banking sector in Ghana remained resilient, well-capitalised, liquid and profitable in the year 2024 after recovering from the Domestic Debt Exchange Programme in the previous years. The sector experienced growth in assets, deposits and moderate profitability. According to the Bank of Ghana, the sector however experienced rise in non-performing loans (NPL) of 21.8 percent as against 20.6 percent in 2023
Despite the uneven economic outlook in the country in the year under review, the Bank took advantage of its strength to capitalise on business opportunities in its catchment area for growth.
Corporate Social Responsibilities
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.
The bank spent GH₵11,350 to support health, community projects, and Farmers Day activities in the year under review as against GH₵5,710 in 2023.
The Board Chairman stressed that the bank is socially responsible and would continue to support projects and engage in environmentally friendly activities in the years ahead.
The Bank also offered other non-quantitative services and support to some events and occasions organised within the various communities as well as those organised by some Government Agencies.
Operational Expansion
The CEO of the Bank, Gilbert Osei – Gyimah told Business & Financial Times in an interview that as part of its growth strategy, the Bank has completed feasibility studies on two proposed branch locations and is engaging relevant stakeholders to move the expansion agenda forward.
In terms of digital innovation, the Bank continues to benefit from the ICT infrastructure provided by ARB Apex Bank. The introduction of the USSD code *992# has made banking more accessible, allowing customers to conduct transactions remotely.
“We will continue to collaborate with ARB Apex Bank to roll out convenient banking solutions across the country,” Mr. Osei Gyimah assured.
Managing Director of ARB Apex Bank, Alex Awuah, in a speech read on his behalf by the Kumasi Manager of ARB Apex Bank, Leonard Maasang, commended Kwabre Area Rural Bank for successfully reversing its loss position within a remarkably short period.
He noted further that the achievement is particularly impressive given that Kwabre Area Rural Bank is one of the youngest Rural and Community Banks (RCBs) in the country.
He added that the performance clearly demonstrates that with the right strategies in place, the Bank is well-positioned to compete, especially in the Ashanti Region, which has the highest concentration of RCBs and is home to some of the best-performing banks in the country.
He further expressed delight at the Bank’s proactive steps in technology adoption. “We are pleased to learn from the Board Chairman’s report that Kwabre Area Rural Bank has taken the lead in deploying the transformative *992# USSD mobile banking solution, allowing customers to access banking services on the go,” he said.
Mr. Awuah stressed the importance of continued collaboration between Kwabre Area Rural Bank and its sister RCBs with ARB Apex Bank to drive innovation across the sector. He expressed ARB Apex Bank’s commitment to leading technology-driven innovation especially in an era of rapid fintech advancement.
He then urged RCBs to enroll more customers onto mobile and internet banking platforms and to expand their agent banking networks by engaging agents at supermarkets, markets, grocery shops, and other convenient locations to broaden access to modern banking services.
