Asawinso Rural Bank records impressive operational performance

• records 138% growth in profit
• Capital Adequacy Ratio moves from negative to positive

By Seth KRAMPAH, Sefwi Asawinso

The Asawinso Rural Bank PLC in the Sefwi Wiawso Municipality in the Western North Region has   posted a remarkable growth in all financial indicators for the 2024 year under review.

The bank recorded a profit before tax of approximately GH?1.85million in the 2024 year under review as against about GH?776,000 in 2023 representing an impressive growth of 138%.

The bank has recorded a significant improvement in its Capital Adequacy Ratio from negative 5.37% to positive 0.37%, going up by 107%.

Shareholders have therefore been given the assurance of prudent management of their investment to increase the Bank’s profitability to increase shareholders’ worth.

The Bank achieved significant results in 2024 with total assets growing by 115% from approximately GH¢ 55.3million to about GH¢119million and   deposits increasing by 111%, from a little over GH¢ 55.3 million to GH¢ 117million.

The Bank’s total loans and advances increased by 58%, from a little over GH¢ 11.7 million to approximately GH¢ 18.5million.   Investments by the Bank went up by 161% from GH¢ 32.6million to approximately GH¢ 85million

The Chairman of the Board of Directors, Anokye Asare   announced these and more at the bank’s 39th Annual General Meeting of shareholders held last Saturday at Sefwi Asawinso.

Operational Environment

According to him, Ghana’s economy demonstrated resilience in 2024, achieving a real GDP growth rate of 5.7%, which exceeded the expected 3.1% growth, supported by improvements in agriculture, mining and digital innovation. However, there were also some headwinds, including the impact of global economic uncertainties and domestic factors like fiscal consolidation and debt restructuring.

The year 2024 witnessed a sustained momentum in global economic growth. Global inflation had a continued downward trend throughout 2024, and most central banks moved closer to their targets. The Central Bank kept the Monetary Policy at 27% as at December 2024 from 30% at the beginning of the year.

The banking sector remained resilient amid macroeconomic challenges, with increased regulatory oversight by Bank of Ghana to ensure stability. In 2024 Ghana’s banking sector showcased growth in assets, profitability, deposits and improvement in capital adequacy. However, the rise in non-performing loans underscores the need for enhanced credit risk management to sustain.

Operational Performance

In spite of the challenging macroeconomic environment coupled with the high inflationary rate that pertained during the reviewed year, the bank managed to pull a remarkable operational performance in all key financial indicators as shown in the table.

ITEMS	GH?’ Million   2024	GH?’ Million   2023	PERCENTAGE CHANGE
Total Income	15,287,216	9,152,711	64%
Total Assets	118,551,645	55,252,636	115%
Shareholders Fund	135,819	-1,338,223	110%
Stated Capital	1,532,019	1,104,429	39%
Deposits	116,973,365	55,321,534	111%
Loans & Advances	8,549,541	11,741,906	58%
Investment	85,038,090	32,598,787	161%
Net Profit Before Tax	1,847,715	775,791	138%
Capital Adequacy	0.37%	-5.37%	107%

Dividend

Due to the previous losses which had eroded the Bank’s stated capital, the Bank of Ghana per its directive did not permit the bank to declare dividend for the financial year 2024. The Board Chairman has however encouraged shareholders to increase their stakes in the bank and also to invite the general public to purchase shares in the bank.

Corporate Social Responsibility

Over the years the bank has been providing support to various state institutions and stakeholders within its catchment areas. The bank has implemented scholarships to brilliant but needy shareholders’ wards.  Shareholders have therefore been encouraged to take advantage of buying new and increase existing shares in order to benefit from the scheme.

Commendation / Advice

The representative of the ARB Apex Bank, who delivered an address on behalf of the Managing Director, Alex Kwasi Awuah, congratulated the shareholders, Board, and Management of the Bank for the exceptional performance of the Bank particularly improving upon the Capital Adequacy Ratio of the bank moving it from negative to positive.

He has therefore reminded the board that the pilot phase of the Agency Banking implementation has been effectively concluded. He further encouraged rural and community banks to begin the deployment of third-party Point of Sale devices.

The Managing Director expressed his confidence that the project will serve as a significant revenue generator for rural and community banks as well as offering true convenience to their esteemed customers.

Future Outlook

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

According to him, the Bank will continue to put in place measures to ensure positive growth and achievement of the strategic plan of the bank.

He mentioned major priorities like branch expansion with additional branch in Sefwi Dwenase to deepen the Bank’s outreach and accessibility as well as growing the bank to be the most efficiently managed rural bank in Ghana with stated capital of over GH¢ 2,000,000 with shareholder value of GH¢ 21,000,000 and total assets of GH¢ 284,000,000 by 2028.

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