Naara Rural Bank announces profit of GH¢4m in 2024 financial year 

The Naara Rural Bank PLC in the Upper East Region, recorded a profit before tax of GH¢4,071,154 in 2024 as compared to GH¢1,641,429 in the 2023 financial year. 

Reverend Father Joseph Aseyire Tabase, the Chairman of the Board of Directors of the Bank, announced this when he delivered the annual report for the period ending December 31, 2024, at the 34th Annual General Meeting (AGM) of the Bank in Bolgatanga. 

“I am happy to inform you that our Bank continues to operate profitably,” he told shareholders at the AGM, and indicated that the profit was an increase of 152.07 per cent during the period under review. 

Rev Father Tabase, who is a Catholic Priest at the Sacred Heart Cathedral Parish in the Bolgatanga Municipality, assured the shareholders that the Board and Management of the Bank would continue to expand efforts to grow their income streams, manage operating expenses, strengthen risk management and internal control, grow revenue and manage risk in the face of fierce competition. 

He said the stated capital of the Bank stood at GH¢3,280,913 in 2024, which was significantly above the regulatory requirement of GH¢1,000,000, “This represents a 21.49 per cent increase on the 2023 figure of GH¢2,700,634,” he added. 

Rev Father Tabase said the Bank closed the year under review with a total asset of GH¢130,333,929 as compared to GH¢73,710,139 recorded in 2023, an increase of 76.82 per cent. 

The Board Chairman indicated that loans and advances formed the largest component of the Bank’s assets. 

The cleric, on capitalization, noted that even though the Bank exceeded the regulatory minimum capital requirements, it still needed to raise more capital to enable it undertake bigger projects, and demonstrate commitment to maintaining strong capital position to support future growth. 

“Even though the Bank achieved significant profitability in 2024, regulatory directives prevent us from payments of dividend until the write-off the Bank undertook in 2021 by the directive of the Bank of Ghana is fully rectified. 

“While this decision delays shareholders rewards, it ensures the sustainability of our business. Therefore, the Board will reinvest the profits to strengthen the Bank’s reserves and assure you of our commitment to liaise with the regulator to ensure dividend payment in the coming years,” the Chairman told shareholders. 

He reflected on the Bank’s contribution to society, and said GH¢92,500 was spent on corporate social responsibilities, which covered health, education, agriculture among other social activities. 

He announced that the Bank would be 45 years old on December 18, 2025, saying, “This is really a great success for us. We would like to express our sincere gratitude for your unwavering support. 

“We also extend our heartfelt thanks to our cherished customers, partners, past and present directors, management and staff, and all stakeholders for their invaluable contributions to the Naara success over the years,” Reverend Father Tabase said. 

Mr Alex Kwasi Awuah, the Managing Director of the ARB Apex Bank, in a speech delivered on his behalf, said the asset growth of the Naara Rural Bank reflected the expansion of its credit extension programmes, which resulted in more loans that improved farmers’ harvests, traders’ businesses and families’ futures throughout the region. 

He said the Bank’s achievements were testaments to hard work and consistency of the Board of Directors, Management, staff and customers, “however, as we celebrate these successes, we must acknowledge the effort required to achieve them.  

“Impairment losses on loans remained steady at GH¢4.1 million, serving as a reminder that every loan in rural banking carries inherent risks. Operating expenses also increased, reflecting the real costs of serving remote branches amid rising fuel and staffing demands,” he said. 

Dr Kudugu Atiah, the Vice President of the Upper East Regional Chapter of the Association of Rural Banks (ARB), appealed to the government to review the corporate tax of 25 percent downwards for the Rural and Community Banks (RCBs). 

He said the collapse of the financial houses led to huge sums of RCBs money locked up, “This is adversely affecting the operations of some RCBs, leading to some of them being in distress. 

“I wish to appeal to the government, BoG and Securities and Exchange Commission to expedite action to free these moneys for the RCBs,” he said. 

Source: GNA 

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