Okomfo Anokye Rural Bank posts 348% growth in profit

Okomfo Anokye Rural Bank PLC at Wiamoase in the Sekyere South District of the Ashanti Region has posted growth in all financial indicators in the 2023 financial year.

The bank ended the year with profit before tax of approximately GH¢ 8.5 million from about GH¢1.9 million in the previous year, representing an impressive growth of 348.31 per cent. 

The size of the bank's balance sheet increased by 33.89 per cent from GH¢137 million in 2022 to GH¢184 million in 2023.

The growth was driven by an increase in deposits due to the confidence reposed in the bank by the bank’s clients. 

Fixed assets increased slightly by 25.97 per cent during the year from GH¢9.2 million in 2022 to GH¢11.5 million.

Dividend

Meanwhile, the bank has received approval from the Bank of Ghana to pay dividends to shareholders. This is because the bank met all the conditions necessary for the payment of dividends to shareholders per the law. 

Given this, the directors recommended a dividend of GH¢0.0072 per share on 110,164,756 ordinary shares which qualified as of December 31, 2023.

This has a total value of GH¢793,186.24 as against GHS¢0.0038 per share which amounted to GH¢336,717.07 in 2022. 

This represents an 89.47 per cent increase in dividend per share over the previous year.

The Chairman of the Board of Directors, Dr Emmanuel Obeng, announced this at the bank’s 37th Annual General Meeting at Wiamoase in the Ashanti Region.

Operational environment 

According to him, the recent debt restructuring programme by the government required the commitment and cooperation of banks and other institutions in the financial sector; and demanded the concerted efforts of all key stakeholders to ensure the programme's success and further, navigate the economy from near-recession to the path of recovery and sustained growth. 

Operational performance

The bank’s deposit grew by 29.92 per cent in performance from GH¢124.2 million in 2022 to GH¢161.4 million in 2023. 

The achievement was a result of the hard work and dedication of the management and staff of the bank as various deposit mobilisation strategies were embarked upon during the year.

Loans and advances to customers increased by 35.89 per cent from GH¢40.7 million in 2022 to GH¢55.3 million in 2023. 

The total disbursement for 2023 increased from GH¢72 million to GH¢94.1 million in 2023.

Corporate Social Responsibilities

In the year under review, the bank spent a substantial amount on corporate social responsibility activities for stakeholders with a special focus on education, health, and security among others. 

The bank spent a total of GH¢171,995 in 2023 as against GH¢108,759 in 2022.  

In addition, the bank had completed an ultra-modern, fully furnished,1,000-capacity social and community center with a borehole for the people of Wiamoase and its environs at a total cost of around GH¢1 million.  

Way forward 

In an interview with the Daily Graphic, the CEO of the bank, Paul Kwabena Oduro said management would continue to seek ways to strengthen and develop the bank’s operations to maintain the confidence that customers and shareholders had gained in the bank in recent times.

According to the CEO, the bank’s business model was still tailored for the micro, small, and medium enterprises and would push for more market penetration as they developed new and innovative products and trusted relationships with bank clients.