Nwabiagya Rural Bank holds 37th AGM, records remarkable growth in all indicators

By Elizabeth PUNSU, Barekese

Nwabiagya Rural Bank PLC at Barekesse at the Atwima Nwabiagya District of the Ashanti Region has announced a remarkable financial growth, posting a significant 79.74 percent growth in profit before tax for the 2024 year under review.

Return on assets increased by 19.11 percent, resulting in the change in ratio from 4.97 percent in 2023 to 5.92 percent in 2024 and meeting the prudential benchmark of 5 percent.

Return on equity increased by 660.11 percent, showing a major turnaround from the negative position of -19% in 2023 to a positive position of 106.42% in 2024. Basic earnings per share increased by 30.62% during the period from GH?0.51193 per share in 2023 to GH? 0.81817 per share in 2024.

The Bank’s total assets expanded significantly by 50.84 percent, rising from GH? 227.1 million in 2023 to GH? 342.6 million in 2024. Deposits also recorded a 44.48 percent increase, reaching GH? 318.2 million. Loans and advances inched up by 2.44 percent to GH? 35.3 million.

Shareholders’ funds, which had been in the red at GH? -6.6 million in 2023, rebounded strongly to a positive GH? 6.17 million in 2024, a 92.99 percent turnaround attributed to profitability growth.

Bank’s performance
INDICATORS	2023 GH?	2024 GH?	% CHANGE
Total Assets	227,154,326	342,641,586	50.84%
Loans (Gross)	34,490,320	35,332,758	2.44%
Shareholders’ Funds	(6,639,255)	6,173,578	92.99%
Deposits	220,272,749	318,243,604	44.48%
Profit Before Tax	11,286,446	20,285,503	79.74%
Profit After Tax	7,900,513	12,742,183	61.29%
Return on Assets	4.97%	5.92%	19.11%
Return on Equity	-19.00%	106.42%	660.11%
Capital Adequacy Ratio	-8.23%	6.20%	175.33%
Basic Earnings per Share (GH?)	0.51193	0.81817	30.62%

 

Economic environment

Giving his report at the 37^th Annual General Meeting (AGM) of shareholders at Barekese, the Chairman of the Board of Directors, Prof. Samuel Adjei-Nsiah, described the economic environment and outlook for 2024 under review as generally “unfriendly”.

According to him despite the feat, the banking industry is yet to recover fully from the previous years’ challenges, including ‘locked up funds’ in some discount houses and financial institutions and the Domestic Debt Exchange Programme.

Inflation ended the year 2024 at 23.8 percent, exceeding the target of 15 percent set by the managers of the economy. The cedi depreciated by 19.2 percent against the US dollar. The cocoa sector, which is the key sector to the rural economy, continued to experience risks. Production has dropped 50 percent over the past three years. The sector is exposed to financial risks, including debts and revenue losses.

Challenges with capital adequacy and dividends
Despite the positive performance, the Bank acknowledges that its capital adequacy ratio of 6.2 percent still falls short of the Bank of Ghana’s (BoG)10 percent prudential benchmark. This limitation, coupled with negative retained earnings of GH? -10 million, makes it difficult to pay dividends to shareholders.

Prof. Adjei-Nsiah, however, assured shareholders that measures are being implemented to strengthen the capital base and pave the way for dividend payments in the near future.

He therefore urged shareholders to buy more shares to support the bank’s recovery.

CSR and community expansion
Nwabiagya Rural Bank also reported a sharp rise in corporate social responsibility (CSR) spending, which grew from GH?7,000 in 2023 to GH? 54,150 in 2024, supporting projects in health, education, and poverty alleviation.

In line with its expansion strategy, the bank inaugurated a new branch at Asuofua to serve surrounding communities, including Asamang, Achiase, Amoaman, Amanfrom, and Ohwim, thereby extending access to financial services and boosting local economic activity.

Future Outlook

Chief Executive Officer (CEO),  Helen Adjei – Yankey  in an interview with the Business & Financial Times, admitted that as it is characteristic of the banking industry, the Bank is exposed to credit risks, market risks, liquidity risks, and operational risks. However, the board and management have put in place adequate risk management measures to confront these increasing risks in its operations.

The ‘watch dog’ units of Internal Audit and Risks, Compliance, and Anti-Money Laundering (AML) have been adequately resourced to strengthen internal controls. The oversight functions of the board have been developed with tailor-made training in corporate governance and best practices. Shareholders are assured of value for money in their investment and the maximisation of their interests.

Going forward, Mrs. Adjei-Yankey, indicated that the bank will advance in the deployment of digital technologies to improve efficiency in its operations.

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