Bosomtwe Rural Bank records remarkable growth in all indicators

• bags approximately GH¢12 million profit before tax
• shareholders get 20% returns on current GH¢20p share price (Gh¢0.04p)

By Seth KRAMPAH, Kuntanase

Bosomtwe Rural Bank Plc at Kuntanase in the Bosomtwe District of Ashanti Region has recorded a very remarkable operational growth in all financial indicators in the 2024 year under review.

The Bank posted a pre-tax profit of a little over GH¢ 12 million in the 2024 period under review as against approximately GH¢ 6.73 million in the previous year, representing a remarkable growth of 79.70%.

The significant rise in profit is attributed to improved revenues generated from operations and prudent management of recurrent expenditure both on the part of the Board, Management and the entire Staff.

By this, the Board of Directors has congratulated management and staff for the remarkable GH¢5.37 million profit growth which translates in absolute terms and have therefore been urged to work assiduously towards increasing the Bank’s profitability to increase shareholders’ investments.  Directors of the bank have also been commended for their strategic direction and decisiveness in achieving this remarkable success.

Dividend Payment

The Board of Directors has proposed the payment of  a dividend-per-share of GH¢0.04p which gives a return on 20% on the Bank’s current share price of GH¢ 0.20p which the regulator has given its exceptional approval to pay the proposed dividend to shareholders.

It is the hope of the Board of Directors that the Bank’s performance will continue to improve and move towards such a positive direction to enable the continuous payment of Dividend in the years ahead.

Stated Capital and Shareholders Funds

In the 2024 year under review, the Bank’s Stated Capital grew by 36.74% from GH¢3.97million in 2023 to a little over GH¢5.4 million in 2024. Shareholders’ Funds also increased by 54.24 % in 2024 from about GH¢12.5 million in 2023 to approximately GH¢19.26 million. The increase resulted from unprecedented profit achieved and rigorous sales of ordinary shares.

The Bank in spite of the growth in share capital is strategizing to sign up new shareholders, and also have existing shareholders invest more into the Stated Capital of the Bank. This will enable the growth of the Bank to be accelerated and ensure that the Bank is able to expand its operations and enhance its profitability to the benefit of cherished shareholders.

The Chairman of the Board of Directors, Benjamin Osei Boateng Esq.  announced these and more at the Bank’s 35th Annual General Meeting of shareholders held yesterday at the church auditorium of St George’s Catholic Church at Kuntanase in Ashanti.

Operational Environment

According to him, the year under review, 2024 was characterized by mixed economic developments in Ghana. The economy witnessed gradual recovery from the previous year’s fiscal challenges, supported by the IMF Extended Credit Facility program and prudent monetary policies by the Bank of Ghana. Inflation, which had peaked earlier, began to decline gradually, while the exchange rate showed signs of stability.

However, the high cost of living, elevated interest rates, and tight liquidity conditions continued to affect both businesses and households. The rural banking sector, including Bosomtwe Rural Bank, operated under these same macroeconomic pressures-compelling institutions to strengthen efficiency, manage risks prudently, and sustain customer confidence.

The rural banking industry continues to play a vital role in Ghana’s financial inclusion and community development efforts. During the year under review, the Bank of Ghana and ARB Apex Bank intensified their supervisory roles, especially regarding capital adequacy, digital transformation, and cybersecurity compliance.

In spite of the challenging macroeconomic environment coupled with the high inflationary rate that pertained during the reviewed year, the bank managed to pull yet another impressive operational performance in all key financial indicators supported by enhanced deposit mobilization strategies, prudent cost management and stronger credit risk controls. Revenue streams improved across key business line compared to 2023 as indicated in the table.

INDICATOR	2024 GH¢	2023 GH¢	CHANGE %
TOTAL DEPOSIT	297,263,573	187,652,363	58.41
INVESTMENT	239,013,349	134,010,433	78.23
ADVANCES	50,689,297	43,132,696	17.52
SHARE CAPITAL	5,437,645	3,976,558	36.74
PROFIT BEFORE TAX	12,097,477	6,729,996	79.70
TOTAL ASSETS	343,029,680	206,160,098	66.39
SHAREHOLDERS FUND	19,260,086	12,487,105	54.24

 

Corporate Social Responsibility

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 included that of the Local Government, Ghana Education Service (GES), the Ghana Police Service, some government health facilities and support for Farmers’ Day Celebration. For the year 2024, a total of GH¢163,500 was spent on CSR programmes for local communities.

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. These contributions reflect the Bank’s dedication to community development and its role as a responsible corporate entity.

Commendation / Advice

The Kumasi Manager of ARB Apex Bank, Leonard Maasang who delivered an address on behalf of the Managing Director, Alex Kwasi Awuah, congratulated the shareholders, Board, and Management of the Bank for the impressive performance of the Bank.

He has commended the Board of Directors for providing strategic leadership, and Management for their operational efficiency and integrity. He added that the Bank’s 2024 results clearly indicate that Bosomtwe Rural Bank is becoming a model of growth through prudence and innovation. “Your performance is not only a source of pride for your shareholders but also an encouragement to the entire rural banking sector”, he stressed.

The MD of ARB Apex Bank advised Bosomtwe Rural Bank to deepen its adoption of digital tools; including agency banking, mobile banking platforms, and the GhanaPay solutions, to enhance service delivery, expand outreach, and reduce operational costs.

He mentioned that digital transformation is not merely about technology; it is about building convenience and trust. He stressed that ARB Apex Bank continues to invest in shared digital infrastructure for RCBs and urged Bosomtwe Rural Bank to leverage these platforms to reach more customers, especially the youth and informal sector workers who increasingly prefer mobile-based services.

Outlook

The Chief Executive Officer of the Bank, Francis Agyei Bekoe, in an interview with the Business & Financial Times, said the Bank would continue its good services and develop need-based products for its customers.

He has also affirmed that Bosomtwe Rural Bank continues to stand as a pillar of financial resilience and community empowerment. According to him, the Bank’s performance over the past year reflects not only prudent management and operational efficiency, but also the unwavering trust customers and stakeholders place in them.

“We are poised to make significant strides in expanding our digital banking platforms, deepening financial inclusion, and supporting local enterprises, especially in underserved areas. These achievements are a testament to our commitment to innovation, transparency, and sustainable growth.”

Mr Agyei Bekoe said he and his team are energised by the opportunities that lie before them. He stressed that their strategic focus remains anchored on enhancing customer experience, strengthening risk management framework, and investing in staff capacity development which he believes will enhance the bank’s profitability.

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