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The Sefwiman Rural Bank has reported impressive growth in its financial performance for the 2023 fiscal year, despite significant challenges in Ghana’s financial sector. The bank recorded a 121% increase in its Profit Before Tax (PBT), reaching GHC 3,189,631 in 2023, compared to GHC 1,442,633 in 2022. The Net Profit After Tax (NPAT) similarly saw substantial growth, surging by 104% from GHC 1,075,122 in 2022 to GHC 2,194,774 in 2023.
The bank’s overall gross earnings grew by 49%, increasing from GHC 10,610,556 in 2022 to GHC 15,843,241 in 2023. However, the bank also saw a rise in interest expenses by 50%, from GHC 2,064,259 in 2022 to GHC 3,471,455 in 2023. This resulted in a 48% increase in net interest income, which rose from GHC 6,790,613 in 2022 to GHC 10,059,199 in 2023.
These financial achievements were disclosed by the new Chairperson of the bank, Miss Olivia Nyarkoa Kyeh, during the 18th Annual General Meeting (AGM) held in Bibiani, in the Western North Region. Miss Nyarkoa Kyeh attributed the bank’s remarkable performance to its commitment to prudent risk management, strong corporate governance practices, and strict adherence to its strategic direction.
Strong Business Growth
Miss Nyarkoa Kyeh highlighted the significant expansion in the bank’s total assets, which increased by 38% to GHC 83.79 million in 2023, up from GHC 60.57 million in the previous year. Additionally, loans and advances grew by 12%, rising from GHC 16.26 million in 2022 to GHC 18.19 million in 2023.
The bank’s investment portfolio also saw impressive growth, increasing by 41% from GHC 36.30 million in 2022 to GHC 51.31 million by the end of 2023. Miss Nyarkoa Kyeh praised the board, management, and staff for their dedication, which contributed to the bank’s success and enhanced its reputation within the financial industry.
Furthermore, the chairperson noted a significant increase in customer confidence, as demonstrated by a 50% rise in customer deposits, from GHC 47.40 million in 2022 to GHC 71.10 million in 2023.
Support for Agricultural Development
In a move to support the agricultural sector, the Chief Executive Officer (CEO) of the Sefwiman Rural Bank, Mr. Richard Kwame Adjei, revealed that the bank has formed partnerships with organizations such as the Rural Enterprises Programme (REP), RDF Ghana, and the African Development Bank’s Social Investment Fund (AfDB/SIF). Through these collaborations, the bank has rolled out agricultural products designed to enhance the livelihoods of farmers engaged in crops, poultry, and livestock.
As part of this initiative, the bank has disbursed a total of GHC 3 million to over 250 farmers, enabling them to increase production and create additional employment opportunities.
Commendations and Industry Recommendations
The Managing Director of ARB Apex Bank, Mr. Alex Kwasi Awuah, commended the Sefwiman Rural Bank for its strong performance, particularly in a year where many banks struggled to declare dividends. His message, delivered by Mr. Kofi Owusu, Regional Manager of ARB Apex Bank, Ashanti, emphasized the need for the board to continue its hard work while implementing risk mitigation strategies to address emerging challenges in the banking sector.
He also encouraged strict adherence to the Corporate Governance Directive to prevent possible sanctions.
Omanhene’s Support
The Omanhene of the Sefwi Anhwiaso Traditional Area, Ogyeahoho Yaw Gyebi II, expressed his support for the bank, encouraging shareholders to invest further in the institution. In an address read on his behalf, he praised the bank for serving the interests of the local people and called on the board to consider salary increases for staff, acknowledging their hard work.
Dividend Declaration
The board of directors, recognizing the shareholders’ loyalty and sacrifice, secured approval from the Bank of Ghana to pay a dividend of GHC 0.05 per share, amounting to a total payout of GHC 398,669.80.
The remarkable performance of Sefwiman Rural Bank in 2023 reflects its resilience and strong strategic direction amidst challenging economic conditions, solidifying its place as a leading rural bank in Ghana.
