By Daniel Bampoe
The Enyan Denkyira Rural Bank PLC has posted an impressive profit after tax of GH¢1,148,072 for the 2024 financial year, marking a steady rise from the GH¢1.073 million recorded in 2023.
The figures, announced at the bank’s 42nd Annual General Meeting (AGM), underscore the resilience of rural and community banks (RCBs) amid Ghana’s turbulent financial sector environment.
The Central Region-based bank also saw significant expansion across its key performance areas.
Its loan portfolio grew from GH¢22.2 million in 2023 to GH¢28.8 million in 2024, a 30.08 percent increase. Deposits surged by 49.21 percent, jumping from GH¢33.38 million in 2023 to GH¢49.8 million in 2024.
Meanwhile, operating income rose by 34.02 percent, climbing from GH¢7.95 million in 2023 to GH¢10.65 million in 2024.
In recognition of this performance, the Board of Directors has proposed a dividend of GH¢450,000 for shareholders, subject to the approval of the Bank of Ghana (BoG).
The central bank’s regulatory oversight on dividend payments, introduced in 2020, has made shareholder payouts irregular in recent years, a concern repeatedly raised during AGMs across the RCB sector.
Resilience Amid Challenges
Chairman of the Board of Directors, Sam Woode, attributed the strong performance to prudent management and effective strategies to navigate ongoing economic challenges.
He emphasized that the bank has intensified efforts to recover non-performing loans while strengthening credit risk management systems.
“Credit monitoring and loan recovery remain central to our operations. We have also intensified deposit mobilization strategies to ensure sustainable growth. With these measures, we are confident of achieving our 2025 goals despite operational challenges,” Woode said.
He called for deeper collaboration with stakeholders, stressing that collective efforts would drive innovation, growth, and value creation for both shareholders and customers.
Support from ARB Apex Bank
In an address delivered on his behalf, the Managing Director of the ARB Apex Bank, Alex Kwasi Awuah, praised Enyan Denkyira Rural Bank for its commitment to extending credit within its operational communities.
He, however, cautioned that timely repayment of loans remained critical to sustaining the credit cycle and the broader role of RCBs in rural development.
“The profit after tax recorded is proof to shareholders that management and directors are delivering value on their funds. It should provide confidence in the bank’s sustainabilityAwuah stated.
He further pledged continued support from the ARB Apex Bank to ensure Enyan Denkyira Rural Bank becomes a model institution in the Central Region, reflecting the broader vision of strengthening RCBs as engines of financial inclusion and rural transformation.
Sector Context
The rural and community banking sector in Ghana has faced significant headwinds in recent years, including the effects of the financial sector clean-up, tightening regulatory requirements, and economic pressures such as inflation and currency depreciation.
Many RCBs have struggled with non-performing loans and liquidity issues.
Against this backdrop, Enyan Denkyira Rural Bank’s growth trajectory stands out as an example of resilience. Its rising loan portfolio demonstrates confidence in lending, while deposit growth indicates increasing trust from customers in the communities it serves.
Shareholders’ Concerns
Despite the encouraging financials, some shareholders expressed frustration about the irregularity of dividend payments since the BoG began exercising strict approval powers in 2020.
They appealed to regulators to streamline the process to ensure that rural bank shareholders benefit regularly from profits.
