Despite the global and national economic challenges faced by the financial sector in 2024, Builsa Community Bank (BUCO Bank) achieved remarkable growth across all financial indicators.
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Record Profit by Builsa Community Bank
The Bank posted an impressive after-tax profit of GH₡5.33 million, marking a staggering 646% increase over its 2023 profit. This performance marks the highest profit recorded by the Bank in its history, dating back to its founding in 1996.
Strong Capital Position
BUCO Bank also demonstrated a solid financial position, with stated capital rising to GH₡2.3 million in 2024, up from GH₡2.1 million the previous year. This growth comfortably exceeded the Bank of Ghana’s mandatory capital requirement of GH₡1 million for rural and community banks.
Reasons Behind the Growth
The Board and Management attributed this significant growth to strong shareholder confidence in the Bank’s long-term vision and financial stability. Additionally, prudent financial management and operational efficiency played pivotal roles in achieving these results.
Growth in Key Financial Indicators
The Bank’s total deposits saw a substantial increase of 49.26%, growing from GH₡59.3 million in 2023 to GH₡88.5 million in 2024. Similarly, its net worth surged from GH₡1 million to GH₡7 million, representing a remarkable 582% growth. Short-term investments grew by 77.4%, from GH₡34 million to GH₡60.3 million, while loans and advances increased by 20.44%, reaching GH₡25.7 million in 2024.
Strong Resilience
The Chairperson of the Bank, Mrs Akanbangbiem Agamu Asokea, highlighted that BUCO Bank’s strong performance in 2024 allowed it to fully absorb the GH₡6 million impairment provision imposed by the Bank of Ghana in 2023 on the Bank’s legacy loans. Furthermore, the Bank received a “Satisfactory” rating from the Efficiency Monitoring Unit of the Association of Rural Banks (ARB) Apex Bank PLC. This was a notable improvement, with BUCO Bank climbing from 89th position in 2023 to 66th among the 147 Rural and Community Banks in 2024.
Strategic Focus for Sustained Growth
Looking ahead, Mrs Asokea emphasized the Bank’s commitment to strengthening asset quality. This will involve disbursing well-assessed credit facilities, aggressively recovering non-performing assets, and diversifying the loan portfolio to mitigate concentration risks. These efforts align with regulatory expectations for sustained growth.
Corporate Social Responsibility Efforts
In terms of corporate social responsibility, BUCO Bank invested GH₡55,428.00 in various community initiatives, focusing on education, agriculture, healthcare, culture, sports, and environmental sustainability. Mrs Asokea reaffirmed that the Board and Management remain committed to pursuing initiatives that would promote sustainable growth, safeguard depositors’ funds, and maximize shareholder value.
Commendations and Recommendations
Mr. Mark Odoi Adjei, Head of Banking Operations at ARB Apex Bank PLC, praised Builsa Community Bank for its exceptional performance. He encouraged the Board and Management to maintain professionalism, diligence, honesty, and transparency to strengthen shareholder trust and ensure continued investment.
Meanwhile, Reverend Father Joseph Tabase, the Acting Upper East Regional Chapter President of ARB, called on the government to review the 25% corporate tax imposed on the profits of rural community banks, arguing that it was adversely affecting their growth.
Mr. Solomon Akogti, the Builsa North Municipal Chief Executive, commended Builsa Community Bank for its consistent support for the district’s development and urged the Bank to continue initiatives that will promote the welfare of the community.
Conclusion
Builsa Community Bank’s stellar performance in 2024 underscores its resilience and commitment to financial stability and community development. With continued focus on operational excellence and community growth, the Bank is well-positioned for long-term success.
