Despite economic setbacks in 2021, the Sekyere Rural Bank in Ashanti region has declared a 71% profit before tax, largely due to the growth of its loan portfolio.

Profit margins in the 2021 financial year increased to over 1.5 million cedis from 894 thousand cedis in the previous year.

The rise in profit was mainly driven by loans and advances which increased to over 45.6 million cedis, representing a forty-seven percent increase.

Chief Executive Officer, Michael Aidoo explained that, ”we designed short term loan products to meet the demand of customers. One of the products was the fast track loan. Most of the customers import from outside and they sometimes need money to clear the goods and pay back in a month or two. So we formulated that product for them”.

He spoke to Luv News on the sidelines of the 33^rd Annual General Meeting of the Bank.

Notwithstanding challenges in deposit mobilization on the back of general economic downturn, deposit drive increased by 10 percent.

“The rise was largely contributed by the growth recorded in demand deposit and followed by susu and fixed deposit accounts”, he added.

Demand deposit increased by 16 percent, with fixed deposit going up by 12 percent. Susu and other deposits increased from 28 million to over 31.5 million cedis.

Mr. Aidoo says though the bank has exceeded its recapitalization obligations, shareholders are encouraged to increase shares to keep the bank resolute.

 “Shareholders’ fund grew by 12 percent, compared with the previous year’s growth of 10 percent. Nonetheless, it is prudent to build adequate fund to make our bank more resilient, by acquiring more shares”, he said.

Despite the gains, the 2022 financial year has proven tougher with the cedi’s negative depreciation affecting the bank.

Hikes in inflation among other factors have reduced deposits.

Board Chairman, Dr. Dr. Francis Denteh, is however optimistic of a positive outcome.

“The Bank will continue to pursue strategies and programs that would well position and drive the performance of the bank towards achievement of corporate objectives”, he added.

Meanwhile, the Bank of Ghana is yet to approve payment of dividends to be paid to shareholders despite the gains.