Manya Krobo Rural Bank posts impressive growth in all financial indicators

• records GH¢6.5million profit before tax
• shareholders get 16.4% returns on current GH¢0.25 share price

By Elizabeth PUNSU, Odumasi Krobo

Manya Krobo Rural Bank PLC at Odumase in the Manya Krobo Municipality in the Eastern Region has held its 44^th Annual General Meeting (AGM) of shareholders and delivered a stellar performance in all financial indicators for the 2024 year under review.

The Bank has recorded a satisfactory profit before Tax of approximately GH¢6.5 million in the 2024 year under review as against a little over GH¢4million representing an impressive growth of 63%.

Driven by robust growth in total assets, the bank achieved remarkable results that underscore the operational efficiency and capacity of the Board and Management.

By this, the Board of Directors has congratulated management and staff for the remarkable GH¢2.5 million profit growth and have therefore been urged to work assiduously towards increasing the Bank’s profitability to increase shareholders’ investments.

Dividend Payment

The Board of Directors has proposed a total Dividend payment of about GH¢1.5 million. This translates to a dividend-per-share of GH¢ 0.041. This gives a return on investment of 16.4% on the Bank’s current Share Price of GH¢ 0.25 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 from a little over GH¢5million in 2023 to approximately GH¢ 5.5 in 2024. Shareholders’ Funds also increased from approximately GH¢15miilion to 18.7 million in 2024.

The Bank in spite of this satisfactory growth in share capital is strategizing to sign on 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 its cherished shareholders.

Chairman of the Board of Directors, Patrick Amanor Buckor announced these and more at the bank’s 44th AGM of shareholders held recently.

Operational Environment

According to him, Ghana’s real Gross Domestic Product (GDP) expanded by 5.7% in 2024 relative to 3.1% in 2023. Much of this strong growth was attributed to the industry and services sectors, which grew by 7.1% and 5.9% respectively.

The country’s inflation rate increased marginally to 23.80% in December 2024 compared to 23.20% in December 2023. The factors attributed to the high rate of inflation in 2024 included the high food prices on account of unfavourable climatic conditions and lagged exchange rate pass-through effects.

The Ghana cedi remained volatile during the first three quarters of the year until the last quarter, when it regained some of its lost value. The reasons for the pressure on the currency included the increased demand for foreign exchange to support energy-related payments and the election-related spending.

As part of the Bank of Ghana’s objective to pursue sound monetary policies aimed at price stability and creating an enabling environment for sustainable economic growth, it made several rate adjustments to the Monetary Policy Rate (MPR) in the course of the year. The MPR declined from 29% in January 2024 to 27% in December 2024. These changes were based on the outlook for inflation and GDP growth.

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 yet another remarkable operational performance in all key financial indicators as indicated in the table.

OPERATING RESULTS FOR 2024

	PERFORMANCE INDICATOR	2024 (GH?)	2023 (GH?)	INCREASE
A.	Net Operating Income	41,339,267	29,127,502	42%
B.	Operating Expenses	34,797,399	25,118,312	39%
C.	Pre-Tax Profit	6,541,868	4,009,190	63%
D.	Profit After Tax	4,038,167	2,814,274	43%
E.	Total Deposits	227,027,321	150,654,502	51%
F.	Gross Loans and Advances	73,882,966	42,407,967	74%
G.	Total Investments	146,433,345	109,468,168	34%
H.	Shareholders’ Fund	18,748,272	15,094,897	24%
I.	Total assets	262,967,819	174,905,740	50%

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 Traditional Councils, Ghana Education Service (GES), the Ghana Police Service, some government health facilities and support for Farmers’ Day Celebration.

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 spending a total of GH?367,000 in CSR.

The Bank deepened its commitment to Environmental, Social and Governance (ESG) principles, pledging to integrate sustainability into its operations and enhance data reporting on ESG metrics.

Expansion

The Bank has expanded its footprint in 2024, by relocating its Madina branch and upgrading its Ashaley Botwe Mobilisation Centre to full branch status. Both locations, previously loss-making, contributed positively to profits. Plans are underway to open a new branch in Dawhenya, pending regulatory approval.

Association of Rural Bank Commendation

The Association of Rural Banks (ARB) has praised Manya Krobo Rural Bank Plc for its outstanding performance in 2024, describing the institution as a shining example of how rural banks can drive both profitability and social impact.

Speaking at the Bank’s 44th Annual General Meeting in Odumase-Krobo the Executive Director of Association of Rural Banks, Solomon Amankwah, congratulated the Board, Management and staff for their sterling performance in a challenging financial year.

Mr. Amankwah noted that the achievement was particularly remarkable given the difficult economic environment, regulatory tightening and the dynamic financial sector landscape. He said the results reflected prudent management, strategic foresight and the dedication of the entire Manya Krobo team.

Future Outlook

Chief Executive Officer of the Bank, Godfred Asante Hanson, in an interview with Business & Financial Times said the Bank would continue to forge ahead in the pursuit of leveraging its market share in its catchment area and sparing no effort to ensure that the Bank opens new branches within the coming years.

He emphasized that it is their belief to continue to put in measures which would enable the Bank to create sustainable returns for Shareholders going into the future.

He further stressed that technology could not be left in the gallery of modern banking and for that matter they would explore other business opportunities in the digital space and ensure that they are not taken by events in cyber security environment.

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