The La Community Bank reported a profit of GH¢1.29 million for the 2023 financial year, announced Chairperson Seth Nii Sodjah Quao on Thursday.
He noted that this represents an improvement over the previous year, during which the bank posted a profit of GH¢1.2 million.
The announcement was made by the chairperson at the bank’s 36th Annual General Meeting (AGM) in Accra.
Mr. Sodjah Quao highlighted that despite challenges such as the unstable macroeconomic environment, the Domestic Debt Exchange Programme (DDEP), and high inflation, the bank achieved notable success in operating income.
“Ladies and gentlemen, despite the hard economic conditions and continuous biting effects of the Domestic Debt Exchange(DDE) programme, the bank’s total operating income increased by 28 per cent from GH¢9.2 million in 2022 to GH¢11.9 million in 2023.
“High inflation within the year resulted in general hikes, resulting in a 24 per cent increase in operating expenditure from GH¢7.9 million in 2022 to GH¢9.7 million in 2023,” he said.
He mentioned that this progress was accomplished through several strategies endorsed by the board and executed by the management to enhance the bank’s performance.
The chairperson also pointed out some of the bank’s notable achievements, including increased loan disbursements to small and medium enterprises and a rise in total deposits.
“Ladies and gentlemen, during the year under review, loans and advances to customers increased by 64 per cent from GH¢ 6.7 in 2022 to GH¢11 million in 2023 due to the new strategic directions implemented by the board and management.”
“Total deposits increased by 18.9 per cent from GH¢7 million in 2022 to GH¢ 7 million in 2023, while total assets and equity increased by 12.3 per cent and 27.23 per cent, respectively,“ he said.
He disclosed that the DDEP resulted in GH¢2.4 million in losses for the bank, which will be amortized over four years starting in 2023, at GH¢608,000 per year.
The Chairperson noted that despite the bank achieving a modest profit in 2023, the board could not seek approval for dividend payments to shareholders.
Shareholders attended the AGM to discuss and vote on several financial decisions, including the approval of the 2023 financial statements.
Mr. Alex Kwasi Awuah, Managing Director of ARB APEX Bank, emphasized the importance of enhancing credit outreach in communities, highlighting that credit is crucial for rural and community banks (RCBs).
He stated that the increase in credit extensions underscored the bank’s dedication to supporting local businesses and individuals needing financial aid.
However, he urged the bank to implement rigorous loan monitoring and recovery measures to minimize loan defaults and maintain non-performing loan (NPL) ratios within acceptable industry standards.