Sekyere Rural Bank PLC has commenced processes to increase its loan administration to improve profitability in subsequent years.
Financial indicators have revealed the bank will hit record profit margins by the close of 2025.
Already, a profit increase of 246 percent was recorded in 2024, putting the company on the path of recovery after the setback caused by the Domestic Debt Exchange Program.
The rise was driven mainly by deposits and strengthened loan administration.
According to the Chief Executive Officer, Michael Aidoo, loans were tailored to meet the demands of customers, with group and commercial loans being of interest.
“We had to introduce some facilities that met the needs of our customers. We also strengthened our recovery system, and so we are always on the field monitoring and recovering our loans,” he added.
In improving the gains made in the area, the Bank is in the process of improving loan administration with efforts to introduce new products.
The Bank’s Annual General Report indicated deposits went up to over 295 million cedis from 187 million cedis recorded in 2023, representing an increase of 57 percent.
The rise in deposit products grew by more than half, with the exception of fixed deposits, which recorded a 36 percent growth rate.
The Bank attributes the rise to “hard work and dedication of management and staff.”
Dividend and Corporate Social Responsibility
Despite the increase in profit margins, the Bank was unable to secure authorization from the Bank of Ghana to pay dividends for the 2024 financial year.
By a directive of the Bank of Ghana, banks are restrained from paying dividends unless written approval is secured from the central bank.
But the Board of Directors has assured that it will meet the requirements for approval in the coming financial year.
“I, however, wish to assure you that, given the strategies the board and management have put in place to correct the Capital Adequacy Ratio, which has resulted in high profit levels being recorded, it will not take long for us to start paying dividends,” the Board of Directors assured.
The Bank continued to offer support to its operational community by investing 150 thousand cedis in agriculture, education, water, and other social issues.
- President Commissions 36.5 Million Dollars Hospital In The Tain District
- You Will Not Go Free For Killing An Hard Working MP – Akufo-Addo To MP’s Killer
- I Will Lead You To Victory – Ato Forson Assures NDC Supporters
Visit Our Social Media for More
About Author
