Manya Krobo Rural Bank Surpasses Financial Milestones
Strong Financial Performance and Strategic Growth
Manya Krobo Rural Bank PLC, located in Odumase within the Manya Krobo Municipality of the Eastern Region, recently held its 44th Annual General Meeting (AGM) of shareholders. The bank delivered impressive results across all financial indicators for the 2024 year under review.
The bank recorded a profit before tax of approximately GH¢6.5 million, representing a significant increase from the GH¢4 million recorded in the previous year. This marks a growth of 63%, demonstrating robust financial performance. The growth was driven by an expansion in total assets, which highlights the operational efficiency and capabilities of the Board and Management.
The Board of Directors commended the management and staff for their efforts in achieving a GH¢2.5 million profit growth. They urged continued hard work to further enhance the bank’s profitability and maximize returns for shareholders.
Dividend Payment and Investment Returns
In line with its strong performance, the Board of Directors proposed a total dividend payment of about GH¢1.5 million. This translates to a dividend-per-share of GH¢0.041, offering a return on investment of 16.4% on the current share price of GH¢0.25. The regulator has approved this dividend, reflecting confidence in the bank’s financial health.
The Board expressed hope that the bank’s performance will continue to improve, enabling consistent dividend payments in the future. This commitment to shareholder value is central to the bank’s long-term strategy.
Stated Capital and Shareholders’ Funds
During the 2024 year under review, the bank’s stated capital increased from just over GH¢5 million in 2023 to approximately GH¢5.5 million in 2024. Shareholders’ funds also saw a rise, growing from around GH¢15 million to GH¢18.7 million.
To accelerate growth, the bank is actively seeking new shareholders and encouraging existing ones to invest more in the stated capital. This strategy aims to expand operations and enhance profitability for the benefit of shareholders.
Operational Environment and Economic Outlook
According to the Chairman of the Board of Directors, Patrick Amanor Buckor, Ghana’s real Gross Domestic Product (GDP) expanded by 5.7% in 2024, compared to 3.1% in 2023. The industry and services sectors contributed significantly, with growth rates of 7.1% and 5.9% respectively.
Inflation rose slightly to 23.80% in December 2024, up from 23.20% in December 2023. Factors such as high food prices due to unfavorable weather conditions and delayed exchange rate effects contributed to this increase. The Ghana cedi remained volatile during the first three quarters of the year but regained some stability in the last quarter.
The Bank of Ghana adjusted the Monetary Policy Rate (MPR) throughout the year to maintain price stability and support economic growth. The MPR decreased from 29% in January 2024 to 27% in December 2024, reflecting improved economic conditions.
Operational Performance and Key Financial Indicators
Despite the challenging macroeconomic environment and high inflation, the bank achieved remarkable results in all key financial indicators. The following table highlights the performance:
| PERFORMANCE INDICATOR | 2024 (GH₵) | 2023 (GH₵) | INCREASE |
|---|---|---|---|
| Net Operating Income | 41,339,267 | 29,127,502 | 42% |
| Operating Expenses | 34,797,399 | 25,118,312 | 39% |
| Pre-Tax Profit | 6,541,868 | 4,009,190 | 63% |
| Profit After Tax | 4,038,167 | 2,814,274 | 43% |
| Total Deposits | 227,027,321 | 150,654,502 | 51% |
| Gross Loans and Advances | 73,882,966 | 42,407,967 | 74% |
| Total Investments | 146,433,345 | 109,468,168 | 34% |
| Shareholders’ Fund | 18,748,272 | 15,094,897 | 24% |
| Total Assets | 262,967,819 | 174,905,740 | 50% |
Corporate Social Responsibility
The bank continues to support various state institutions and stakeholders within its catchment areas. During the year under review, it provided assistance to Traditional Councils, the Ghana Education Service (GES), the Ghana Police Service, government health facilities, and farmers’ events.
A total of GH¢367,000 was spent on Corporate Social Responsibility (CSR) initiatives. The bank deepened its commitment to Environmental, Social, and Governance (ESG) principles, pledging to integrate sustainability into its operations and improve ESG data reporting.
Expansion and Future Plans
In 2024, the bank expanded its footprint by relocating its Madina branch and upgrading its Ashaley Botwe Mobilisation Centre to full branch status. Both locations, previously loss-making, now contribute positively to profits.
Plans are underway to open a new branch in Dawhenya, pending regulatory approval. This expansion reflects the bank’s commitment to growth and service improvement.
Association of Rural Banks Commendation
The Association of Rural Banks (ARB) praised Manya Krobo Rural Bank Plc for its outstanding performance in 2024. Executive Director Solomon Amankwah highlighted the bank’s ability to drive profitability and social impact despite challenging economic conditions.
Future Outlook
Chief Executive Officer Godfred Asante Hanson emphasized the bank’s focus on expanding its market share and opening new branches in the coming years. He stressed the importance of technology in modern banking and the need to explore digital opportunities while ensuring cybersecurity.
The bank remains committed to creating sustainable returns for shareholders and adapting to the evolving financial landscape.
No Comments