Financial Growth and Operational Success
Odotobri Rural Bank PLC, located in Jacobu within the Amansie Central District of the Ashanti Region, has achieved remarkable financial growth across all indicators for the 2024 year under review. The bank recorded a profit before tax of approximately GH₵ 29.7 million, which is a significant increase from the GH₵ 13.6 million recorded in 2023. This represents a growth of 117.69%, translating to an absolute increase of GH₵ 16.1 million.
The Board of Directors commended the management and staff for this impressive performance, urging them to continue working diligently to enhance the bank’s profitability and maximize returns for shareholders. The directors were also praised for their strategic decision-making and leadership that contributed to this success.
Dividend Payment and Shareholder Returns
The Board of Directors proposed a total dividend payment of GH¢2,424,674, which constitutes 12.16% of the profit after tax. This translates to a dividend per share of GH¢0.0075p. The proposed dividend marks a 74.42% change from what was suggested in 2023. This dividend offers a return of 7.5% on the current share price of GH¢0.10p, which has been approved by the regulator.
The Board expressed hope that the bank’s performance will continue to improve, enabling consistent dividend payments in the future.
Stated Capital and Shareholders’ Funds
In 2024, the bank’s stated capital increased by 31.39%, rising from GH¢3,823,864 in 2023 to GH¢5,024,171.00 in 2024. Shareholders’ funds also saw a significant increase of 63.41% in 2024 compared to 38.47% in 2023.
Despite this growth, the bank is actively seeking new shareholders and encouraging existing ones to invest more in its stated capital. This strategy aims to accelerate the bank’s growth and enable it to expand operations while enhancing profitability for shareholders.
Operational Environment and Economic Outlook
According to the Chairman of the Board of Directors, Benedict Boadi, the year 2024 witnessed sustained global economic growth. Inflation showed a downward trend throughout the year, with central banks moving closer to their targets. The Central Bank maintained the Monetary Policy at 27% as of December 2024, down from 30% at the start of the year.
On the domestic front, economic activity was robust, with higher-than-expected growth in the first three quarters of 2024. Inflation rose from 23.2% in December 2023 to 25.8% in March 2024 but declined to 20.4% in August, only to rise again to 23.8% in December 2024 due to food price increases.
Private sector credit growth continued to rise towards pre-2022 crisis levels, with nominal growth reaching 26.3% in December 2024, up from 10.7% in the same period in 2023. Real credit growth increased by 2.0%, compared to a 10.2% contraction in the previous year.
The banking sector remained profitable, well-capitalized, and liquid. Assets grew by 33.8% in 2024, and the Capital Adequacy Ratio (CAR) increased to 14.0% in December 2024, up from 13.9% in December 2023. However, CAR without reliefs rose to 11.3% in December 2024, higher than the 8.3% recorded in December 2023.
Operational Performance and Corporate Social Responsibility
Despite the challenging macroeconomic environment and high inflation during the reviewed year, the bank achieved another outstanding operational performance across all key financial indicators. The bank continues to support various state institutions and stakeholders within its catchment areas. Projects supported in 2024 included those involving Traditional Councils, Ghana Education Service (GES), the Ghana Police Service, government health facilities, and Farmers’ Day Celebrations.
A total of GH¢369,143.00 was spent on CSR programs in 2024, compared to GH¢191,430 in 2023. The board emphasized the bank’s commitment to social responsibility and its intention to continue supporting community projects and engaging in environmentally friendly activities.
Commendation and Future Outlook
The Managing Director of ARB Apex Bank, Alex Kwasi Awuah, congratulated the shareholders, board, and management of Odotobri Rural Bank for its exceptional performance. He described the bank as one of the most profitable rural and community banks in Ghana.
He encouraged rural and community banks to begin deploying third-party Point of Sale devices, expressing confidence that this initiative would generate significant revenue and offer convenience to customers.
The Chief Executive Officer of the bank, Abraham Coffie, emphasized the bank’s commitment to driving inclusive financial growth. The CEO outlined plans to deepen digital transformation, expand mobile banking and agency networks, and enhance customer experience through tailored financial products.
“We are investing in staff capacity building and secured digitalization to ensure our systems remain secure, agile, and responsive to evolving client needs,” he said. “With the Bank of Ghana’s regulatory reforms and the increasing adoption of fintech solutions, we see immense opportunity to reposition Odotobri as a leader in rural financial innovation.”
The CEO also highlighted the bank’s focus on strategic partnerships with government agencies, SMEs, and community-based organizations to unlock new financing channels and promote entrepreneurship. Plans include increasing the loan portfolio in agriculture, education, and women-led enterprises while maintaining prudent risk management practices.
A financial literacy campaign targeting youth and informal sector workers is also in the works, reinforcing the bank’s role as a catalyst for socio-economic empowerment. With the support of shareholders, the board, and dedicated staff, Odotobri Rural Bank is poised to scale new heights and deliver sustainable value to all stakeholders.
