Sekyere Rural Bank pledges to drive growth through innovation

By Elizabeth PUNSU, Mamponteng

Sekyere Rural Bank PLC has reiterated its dedication to leveraging innovative strategies and technology to drive growth and sustainability even as it navigates through the economically challenging environment.

The bank’s 2023 operational performance demonstrates its resilience and strategic plans, with significant growth in deposits, loans, and assets despite the global economic downturn and the impact of Ghana’s Domestic Debt Exchange Programme (DDEP).

According to the Board Chairman, Nana Bediako-Poku I, the global economy continued to contend with the lingering effects of COVID-19 and the Russia-Ukraine conflict.

These factors impacted Ghana’s economy, with challenges such as exchange rate volatility, inflation, and constrained credit growth within the banking sector.

Despite these challenges, the bank recorded notable growth across several key financial indicators for the 2023 fiscal year, showcasing its resilience despite economic pressures.

The bank recorded a 24 percent increase in deposits, which grew from GH?151.2 million in 2022 to GH?187.8 million in 2023. This impressive performance highlights the success of the bank’s deposit mobilization strategy, which focused on broadening its customer base and enhancing its product offerings.

The bank’s loan and advances portfolio grew by 17 percent to GH?52.8 million from GH? 45.0 million in 2022. This increase according to the Board Chairman shows the Bank’s commitment to supporting businesses and individuals with tailored credit solutions despite constrained credit growth in the banking sector.

Investments also saw a significant boost, rising by 31 percent to reach GH?108.9 million from GH? 83.4 million in the previous year. This growth reflects the bank’s strategic focus on channeling funds into less risky assets, a move that aligns with the broader industry trend during challenging economic periods.

Performance indicator table

Performance Indicator	2023 (GHS)	2022 (GHS)	% Incr./(Decr.)
Deposits	187,765,133	151,153,765	24
Loans and Advances	52,849,797	45,018,298	17
Investments	108,925,423	83,355,626	31
Total Assets	201,576,201	164,868,374	22
Share Capital	2,340,368	2,286,723	2
Profit /(Loss) Before Tax	(3,954,306)	1,341,217	-395
Shareholders fund	7,003,274	8,019,190	-13

 

Total assets of the bank increased by 22 percent growing from GH? 164.9 million in 2022 to GH? 201.6 million in 2023.

While these operational metrics were robust, the bank reported a significant decline in profitability. It recorded a pre-tax loss of GH? 3.95 million, compared to a profit of GH? 1.34 million in 2022. This loss was attributed to impairment losses on bonds affected by the DDEP.

Despite the profitability challenges, the bank maintained a steady growth in its share capital, which rose marginally by 2 percent, reaching GH?2.34 million from GH?2.29 million in the previous year. Despite these challenges highlighted by the bank, it recorded commendable growth in deposits, loans, and total assets:

However, profitability was heavily impacted by impairment losses linked to the DDEP, leading to a 395 percent decline in pre-tax profit to a loss of GHS 3.95 million. Shareholders’ funds also dipped by 13 percent due to these impairments.

Corporate Social Responsibilities

The Bank continues to offer assistance to communities and institutions within its catchment areas in terms of community development projects and financial support.  The bank spent an amount of GH?43,360 in CSR activities. The major economic areas that bene?ted included Education, Health, Sports, Recreation, Chieftaincy and Security.

Way Forward

The Chairman of the Board of Directors urged its shareholders to increase their investments in the bank to ensure a stronger capital base amid potential regulatory changes. He emphasised the importance of strengthening shareholdings despite the current stated capital exceeding the Bank of Ghana’s minimum requirements.

“Even though our stated capital far exceeds the required minimum, there is a need for all of us to further increase our shareholdings significantly, as the regulator may again increase the minimum capital requirement at any time,” he explained

He also called on shareholders to increase their shareholdings to enable the bank recapitalise.

The bank reaffirmed its commitment to compliance, strong corporate governance, and innovation-driven growth, with an emphasis on digitisation and improved risk management systems to enhance customer service and operational efficiency.

The bank remains optimistic about the future, aiming to leverage its strong fundamentals and strategic focus to overcome challenges and deliver value to shareholders and customers alike.

The Managing Director of ARB Apex Bank PLC, Alex Kwasi Awuah, whose speech was delivered by Leonard Maasang, the Ashanti Regional Manager of ARB Apex Bank commended the Board, management and staff of Sekyere Rural Bank for the operational advancement in all critical financial performance indicators.

This according to him is due to the bank’s emphasis on operational efficiency and cost management.

He mentioned the implementation of mobile banking and agency banking to improve the banking experience of rural bank customers with the assistance of the World Bank and the Ministry of Finance.  He urged management of the bank to encourage customers of the bank to sign up to the digital platform for convenience banking and financial inclusion.

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