Odotobri Rural Bank at Jacobu in the Amansie Central District of Ashanti Region has recorded a profit before tax of approximately 29.7 million cedis, representing a remarkable 117.69 percent growth from 13.6 million cedis in 2023.
The Board of Directors congratulated management and staff for the remarkable 16.1 million cedis profit growth and urged them to work assiduously toward increasing the bank’s profitability to increase shareholders’ investments. Directors also received commendation for their strategic direction and decisiveness in achieving this success.
The Board has proposed a total dividend payment of 2,424,674 cedis representing 12.16 percent of profit after tax, translating to a dividend per share of 0.0075 pesewas. The proposed dividend represents 74.42 percent change from what was approved in 2023, giving a return on dividend of 7.5 percent on the bank’s current share price of 0.10 pesewas, which the regulator has exceptionally approved.
The bank’s stated capital grew by 31.39 percent from 3,823,864 cedis in 2023 to 5,024,171 cedis in 2024, while shareholders’ funds also increased by 63.41 percent in 2024 compared to 38.47 percent in 2023. Despite this satisfactory growth, the bank is strategizing to sign on new shareholders and have existing shareholders invest more into the stated capital to accelerate growth and expand operations.
Chairman of the Board of Directors, Benedict Boadi, announced these results at the bank’s 38th Annual General Meeting of shareholders held last Friday at Nana Adu Darko Community Centre at Jacobu in Ashanti.
The bank achieved this impressive performance despite operating in a challenging macroeconomic environment. The Central Bank kept the Monetary Policy Rate at 27 percent as at December 2024 from 30 percent at the beginning of the year. Inflation rose from 23.2 percent in December 2023 to 25.8 percent in March 2024, then declined to 20.4 percent in August before rising again to 23.8 percent in December, primarily due to food price increases.
The banking sector continues to be profitable, well capitalized and liquid. Assets of the banking sector grew by 33.8 percent in 2024, while the industry’s Non Performing Loans ratio increased to 21.8 percent in December 2024, up from 20.6 percent in December 2023.
The bank spent 369,143 cedis on Corporate Social Responsibility programs for local communities in 2024 compared with 191,430 cedis in 2023. Projects supported included those of Traditional Councils, Ghana Education Service, Ghana Police Service, government health facilities and Farmers’ Day celebrations.
The Managing Director of ARB Apex Bank, Alex Kwasi Awuah, congratulated the shareholders, Board and Management of the bank for the exceptional performance, describing Odotobri Rural Bank as one of the most profitable rural and community banks in Ghana due to its impressive 117.69 percent increase in profit.
Awuah reminded the board that the pilot phase of Agency Banking implementation has been effectively concluded and encouraged rural and community banks to begin the deployment of third-party Point of Sale devices, expressing confidence that the project will serve as a significant revenue generator while offering true convenience to customers.
Chief Executive Officer Abraham Coffie told the Business and Financial Times that Odotobri Rural Bank remains steadfast in its commitment to driving inclusive financial growth across operational areas. The bank’s strategic focus will center on deepening digital transformation, expanding mobile banking and agency networks, and enhancing 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 the evolving needs of our clients,” Coffie emphasized, noting immense opportunity to reposition Odotobri as a leader in rural financial innovation.
The bank plans to prioritize strategic partnerships with government agencies, small and medium enterprises, and community-based organizations to unlock new financing channels and promote entrepreneurship. The goal is to increase loan portfolio in agriculture, education and women-led enterprises while maintaining prudent risk management practices, including launching a financial literacy campaign tailored to youth and informal sector workers.
