Odotobri Rural Bank posts 192% growth in profit

Odotobri Rural Bank PLC in Jacobu in the Amansie Central District in the Ashanti Region has recorded growth in all indicators for the 2023 year under review.

The bank recorded a profit before tax of over GH₵13.6 million as against approximately GH¢4.7 million in 2022 representing a growth of 192.17 per cent or GH¢8.9 million.  

The bank’s Management Performance Review as of June 2024 also reveals a profit before tax of about GH¢15.4 million with deposit of about GH¢391 million. 

This is a significant performance and therefore the Board and Management are doing everything possible to ensure sustained operational efficiency to end the year well to give value to shareholders. 

By this, existing shareholders and prospective ones have been urged to buy more shares to set the Bank’s growth pattern on the long-term objective of making positive impact in the communities they operate. 

Additionally, the Board of Directors has proposed a total Dividend payment of GH¢1,355,369. This represents 15 per cent of the profit available for distribution, after the Statutory Reserve requirements which translates into a dividend-per-share of GH¢0.0043p. Furthermore, Bank of Ghana has given exceptional written approval for the proposed dividend to be paid.

The Total Assets of the Bank amounted to approximately GH¢¢358 million in December 2023, representing an increase of 30.75 per cent from about GH¢274 million in 2022.  

The bank’s total assets growth was driven by an increase in deposits.

The Chairman of the Board of Directors, Rev. Prince Osei Owusu, announced these at the bank’s 37th Annual General Meeting at Jacobu last Saturday.

Operating environment

He said even though the bank achieved so much in the year 2023, it did so with hard work and commitment as the economic environment was unfriendly.

Rev. Owusu provided the economic and environment context, saying growth contracted from 3.2 per cent in 2022 to 2.9 per cent in 2023, reflecting spillover effects from Russia's invasion of Ukraine, tight global financial conditions, and macroeconomic challenges among others.

That saw inflation easing from 54.1 per cent in 2022 to 23.2 per cent in 2023, driven mainly by food prices and currency depreciation, with the pace of exchange rate depreciation slowing from 60 per cent in 2022 to 17 per cent in 2023, responding to adjustments in macroeconomic policies.

 
Operational performance

The Board Chairman said in spite of the challenging macroeconomic environment coupled with the unprecedented high inflationary rate that pertained during the reviewed year, the bank managed to pull yet another remarkable operational performance in all key financial indicators.

CSR

“The bank continues to offer assistance to communities and institutions within its catchment areas in terms of community development projects”. 

“In the year under review, the bank spent an amount of GH¢GH¢191,430 on corporate social responsibility activities towards the stakeholders with special focus on education, health, security among others,” Rev. Owusu said.

Future outlook

The Chief Executive Officer of the bank, Abraham Coffie, told the media that the bank would continue to put in pragmatic measures to ensure positive growth and achievement of its strategic plan.  

He stressed that the Odotobri Rural Bank would intensify loan recovery, embark on intensive deposit mobilisation, strengthen internal controls and maintain quality assets to increase profitability.  

He has also emphasised that the bank’s business focus in 2024 was on driving growth, innovations, efficiency and service as the main pillars in achieving profitability.

Mr Coffie stressed the bank would develop the human capital to meet demands of functioning profitability as well as achieving the objective of overcoming the shocks of the unfriendly macro economy and rising cost of living as well as its devastating effects.

He further stressed that the bank's electronic channels shall be given critical attention as part of the Bank's expansion and customer service satisfaction.