Tumu: The Sissala Rural Bank has experienced a notable financial turnaround in 2024, with its profit before tax rising to GHS1.83 million from a previous loss of GHS426,638. Dr. Adam Sulley, the Board Chairman, revealed this information at the bank's 13th Annual General Meeting held in Tumu.
According to Ghana News Agency, Dr. Sulley stated that the financial performance for 2024 supports the decision to restructure the bank. He referred to 2024 as a 'Moment of reflection, hope, and opportunity', highlighting significant restructuring moves such as the appointment of a new CEO and key management staff, with support from the Bank of Ghana and ARB Apex Bank. These changes resulted in improvements in capital adequacy, profitability, operational efficiency, and corporate governance.
Despite facing a challenging macroeconomic environment characterized by high inflation at 23.8% and a cedi depreciation of 19.2%, the Sissala Rural Bank showed growth in key performance indicators. Total income increased by 89.37% to GHS1.830,723 million, deposits rose by 27.62% to GHS13.808,342 million, and total assets surged by 34.95% to GHS14.621,671 million.
However, the bank's capital remains below the Bank of Ghana's minimum requirement of GHS1 million. With a capital base of GHS620,884 as of December 2024, the bank faces a shortfall of approximately GHS379,116. Dr. Sulley appealed to shareholders and the public to increase their shareholdings, emphasizing the need for support and welcoming new investors.
Dr. Sulley mentioned that while dividend payments are not expected until 2026, the bank has initiated a strategic plan from 2024 to 2027 aimed at enhancing its competitive edge and improving shareholder returns. He reassured stakeholders that the Board is committed to restoring confidence and delivering long-term value.
The bank is also expanding its reach through Agency Banking, with 13 agents already positioned in various communities. New digital services such as USSD/mobile banking, Ghana Pay, and internet banking are being introduced to improve customer convenience.
Looking ahead, the bank plans to disburse over GHS2.1 million in credit to farmer-based and microfinance groups in 2025. Marketing campaigns, including radio discussions and community engagements, are expected to enhance the bank's visibility. Governance reforms are also underway, with efforts to onboard qualified directors from the Sissala area.
Despite the setback of the untimely passing of Prof. Abdul-Mumin Salifu, who had accepted directorship pending regulatory approval, Dr. Sulley expressed gratitude to shareholders, staff, and stakeholders for their continued support. He assured them that the bank is on the path to recovery and will emerge stronger.
The Chief Executive Officer, Mr. Tang Ernest, encouraged shareholders to continue supporting the bank and its products.
