Sekyere Community Bank PLC has recorded an impressive 150% growth rate in profit before tax for the year ending December 31, 2025.
Dr. Stephen Antwi, Vice Chairman of the Board, while presenting the Directors’ Report on behalf of the Board Chairman, at the Bank’s 37th Annual General Meeting held at the Bank’s headquarters at Jamasi in the Sekyere South District of the Ashanti Region last Friday disclosed that despite the adverse impact of locked-up funds and the Domestic Debt Exchange Programme (DDEP) on the Bank’s profitability drive, it recorded a remarkable profit performance during the year.
This, he noted, is the highest profit before tax ever made in the Bank’s history, and attributed the achievement to the hard work of the Board, management, and staff. Dr. Antwi said the strong profitability performance had a significant impact on shareholders’ funds, resulting in an unprecedented growth rate of 105%, up from 42% recorded in the previous year.
He informed shareholders of the new Microfinance Framework introduced by the Bank of Ghana. The guideline for operationalizing the new framework directs the conversion of “Rural” banks to “Community” Banks by 31st March 2026, and increases the minimum capital requirement to Gh¢5.0 million, which must be achieved by 31st December 2026.
The Vice Chairman revealed that, as permitted by the guideline, a transfer of Gh¢2,034,340.00 will be made from retained earnings to stated capital to meet the new minimum capital requirement, subject to shareholders’ approval.
According to him, while the Bank would have been in a position to pay shareholders dividends based on its 2025 performance, the amount of Gh¢2,034,340.00 being transferred will instead be shared with all eligible shareholders by way of bonus shares.
Dr. Antwi reiterated the Bank’s commitment to being a socially responsible corporate citizen in Ghana. He said the Bank undertook several CSR initiatives in 2025 totalling Gh¢160,080.00.
These included: a Gh¢3,000.00 donation to Our Lady of Grace in support of an employment fund-raising; a Gh¢6,500.00 donation for a water storage tank for the Mamponteng Fire Service Station among others.
He stressed that the Bank will not relent in pursuing strategies and programmes that will position it well and drive performance towards the achievement of corporate objectives.
Mr Michael Aidoo, the Chief Executive Officer of the Bank, said the 150% profit growth was driven by strengthened loan recovery and monitoring systems, as well as an improved performance management and review system.
According to him, the bank reviews performance almost every fortnight to identify shortfalls and address issues adding that everybody is conscious of the budget ahead of them and what needs to be achieved.
Mr. Aidoo noted that the over GH¢2 million transferred from retained earnings will strengthen the Bank’s capital base and position it to meet the Bank of Ghana’s minimum capital requirements under the new microfinance sector framework.
He explained that the conversion of Sekyere Rural Bank to a Community Bank will widen its operational scope, allowing it to operate in areas previously restricted and expressed the view that with the increased capital base, the Bank will have enough liquidity to operate and expand.
Mr. Aidoo said the financial industry this year was hit by a sharp decline in Government of Ghana money market instruments, particularly Treasury Bills, and a drastic drop in lending rates.
This, he said, means the income stream of financial institutions will reduce unless they do more in terms of loan volume. That is why they have intensified their loan sales and recovery efforts. And things are going well for the Bank this year compared to last year.
For more news, join The Chronicle Newspaper channel on WhatsApp: https://whatsapp.com/channel/0029VbBSs55E50UqNPvSOm2z
