Odotobri Rural Bank Writes Off GH¢3.5m Locked-Up Funds, Records 117% Profit Surge

Accra, Ghana — Odotobri Rural Bank PLC has written off over GH¢3.5 million in locked-up funds invested in two financial institutions affected by Ghana’s banking sector clean-up, according to its 2024 Financial Report.

The affected institutions — Gold Coast Securities and SIC Financial Services Limited — were among several firms impacted by the Bank of Ghana’s financial sector reforms.

However, the bank’s management has assured stakeholders that the write-off will not harm its financial health, citing strong capital adequacy and a robust balance sheet.

Chief Executive Officer Abraham Coffie explained that the move was a necessary accounting adjustment to align with International Financial Reporting Standards (IFRS).

“Writing off such investments does not mean they are completely removed from the books. In the likely event that the receiver or Bank of Ghana honours their obligation, it becomes another income source for the Bank,” he said.

Strong Capital and Resilience

According to Mr. Coffie, Odotobri Rural Bank’s Capital Adequacy Ratio remains well above the Bank of Ghana’s 10% benchmark, underscoring the institution’s strong capacity to absorb financial shocks.

“The Bank remains robust in terms of capital, liquidity, and profitability,” he noted, adding that prudent financial management has helped cushion the institution from the aftershocks of the Domestic Debt Exchange Programme (DDEP).

The DDEP had converted GH¢30.2 million worth of bonds held by the Bank, impacting the repayment of some investment instruments.

Profit and Dividend Growth

Despite the investment write-offs, Odotobri Rural Bank recorded an impressive 117% profit growth in 2024, rising from GH¢13.6 million in 2023 to over GH¢29.6 million.

According to the financial report, the surge was driven by strong growth in deposits, investments, and advances during the review period.

• Deposits increased by 64.15% to GH¢516 million

• Investments rose by 65.89% to GH¢398 million

• Advances climbed by 42.21% to GH¢80 million

Board Chairman <strong data-start=”2532″ data-end=”2550″>Benedict Boadi attributed this strong performance to intensified mobilization efforts by the Bank’s directors, management, and staff, as well as rising customer confidence across its operational areas.

“The release of the converted bonds will further strengthen our operations and positively impact profitability,” Mr. Boadi added.

Following the strong results, the Board of Directors approved an increase in shareholder dividends to GH¢0.0075 per share, representing a 74.42% rise over the previous year. The total dividend payout of GH¢2.42 million accounts for 12.16% of profit after tax.

Community Investment and Expansion Plans

As part of its Corporate Social Responsibility (CSR) efforts, the bank invested GH¢369,143.48 in community development initiatives across education, health, security, and traditional institutions.

Beneficiaries included the Ghana National Fire Service, Ghana Police Service, and Ghana Prisons Service within its operational zones.

Looking ahead, Odotobri Rural Bank plans to open a new branch in 2026 at a strategic location to expand its customer base. The Bank also intends to enhance its digital banking channels to improve convenience, service quality, and market competitiveness.

“We are strategically positioning Odotobri Rural Bank to meet the evolving needs of customers in a fast-changing digital environment,” Mr. Coffie affirmed.

Source: Accra Business News