The ARB Apex Bank is positioning itself to offer robust technical support and operational guidance, as well as coordinating capacity building to support the transition of community banks into the new microfinance regulatory framework.

The Bank of Ghana earlier this year announced comprehensive restructuring of the microfinance and specialised deposit-taking institutions (SDI) sub-sector, transforming the ARB Apex Bank into a central policy tool for the industry.

This policy objective would ensure the bank takes a supervisory role for the entire microfinance ecosystem, by extending its mandate beyond community banks to include microfinance banks, credit unions and the last-mile providers.

This comes in the wake of the bank maintaining strong financial performance in the past year, recording a 35 percent growth in profits within a single year.

Profits and Assets

The Bank recorded a Profit Before Tax of GH₵34.56 million, up from GH₵25.44 million in 2025, reflecting the bank’s strategic focus on operational efficiency, liquidity optimisation and enhanced value creation for the community banks.

The total assets of the bank also saw a significant increase of 136.8 percent from GH¢2.28 billion in 2024 to GH¢5.40 billion, driven by improved deposit levels, stronger liquidity flows and strategic investment activities.

Deposits rose to GH¢5.13 billion from GH¢2.11 billion in 2024, representing 143.1 percent compared with 73.66 percent in 2024.

As a result, the bank was able to expand its loans and advances significantly from GH¢121.97 million in 2024 to GH¢180.34 million, representing a growth of 47.9 percent - though the growth was below the 104.87 percent recorded in the same period in 2024.

Investments also grew by 114.5 percent from GH¢634.49 million in December 2024 to GH¢1.36 billion.

The growth in investments and loans translated into profit after tax growth of 135.94 percent from GH¢19.91 million in 2024 to GH¢46.97 million, driven by improved revenue streams, disciplined cost controls and enhanced operational efficiencies, and deferred tax assets.

Shareholders’ funds improved significantly from GH¢49.47million in December 2024 to GH¢94.83 million, reflecting retained earnings and sustained performance improvements.

The accumulated loss of GH¢63.34 million as at December 2024 had improved to a loss of GH¢28.11 million at the end of 2025.

Board Chair of ARB Apex Bank, Daniel Ohene K. Owusu accords the significant strides to the dedication and support of both members and the governing board of the bank.

“Your commitment has strengthened our ability to deliver our mandate and to navigate a year marked by complexity and transformation. Your guidance and strategic insights have been instrumental in positioning the Bank on a stronger path towards sustainability and enhanced performance,” he noted.

Dividends

Despite the significant profits made in 2025, the bank did not recommend the payment of a dividend for the year under review (2024: nil). This comes amidst the impacts of the Domestic Debt Exchange Program, which has since resulted in an accumulated loss of GH¢28,112,959 (2024: GH¢63,339,991).

Managing Director of the Bank, Curtis William Brantuo, is optimistic dividends will be declared in the coming years given the positive trajectory of the bank’s financials.

“In accordance with the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930), the Bank can only declare dividends upon recording net positive earnings. It is projected that significant gains will be made in the years ahead to rectify the negative retained earnings to be able to declare dividends,” he noted.

Capital Position

The Bank steadily progressed in strengthening its capital position during the 2025 financial year, driven by prudent earnings retention, disciplined balance sheet management and improved asset quality across its operations.

Stated capital saw substantial growth from GH¢18.43 million to GH¢23.43 million, largely resulting from the GH¢5.00 million per annum capital increase subscribed by the community banks to raise the targeted GH¢25.00 million in five years.

“The enhanced capital foundation would place the Bank in a stronger position to support the growth of the community banks, absorb future economic shocks and invest in modern systems that will enable it to execute its mandate more effectively in the years ahead,” Mr. Owusu noted.

Corporate Social Responsibility

Out of the donated amount of GH¢1,129,591 (2024:GH¢464,842) by the community banks, GH¢927,900 was spent on various socially responsible activities, including support to health–related cases such as contributions to the Komfo Anokye Hospital and a kidney transplant.

A total amount of GH¢100,000 was donated toward the national support fund established for the families of the helicopter crash victims.

The remaining GH¢224,842 was, however, spent on educational support and other community-based activities in the bank's catchment of operation.

Outlook

Under the new reforms by the Bank of Ghana, ARB Apex Bank will have additional mandates which, according to the Board, would require an enhanced capital for systems upgrade and modernisation for policy transmission, institutional development and supervisory coordination.

This includes structural changes, enhanced governance and technological improvement to accommodate the new microfinance structure.

The reforms will also introduce ‘far-reaching’ changes for the community banking sub-sector, requiring all rural banks to convert into Community Banks and comply with new minimum capital requirements of GH¢5 million for existing banks and GH¢10 million for new Community Banks by December 31, 2026.

This reform mandate broadens community-based ownership structures, governance restructuring and higher prudential standards.

Despite these immediate challenges, the bank is optimistic about a positive outcome in the coming year.