Strong Financial Performance and Strategic Initiatives
La Community Bank has demonstrated impressive financial performance for the year-end 2024, despite facing economic challenges. The bank reported a 29 percent increase in total revenue, rising from GH₵13.24 million in 2023 to GH₵17.07 million in 2024. This growth was partly attributed to the retrieval of GH₵150,000 in locked-up funds.
Profit after tax also saw a significant increase, moving from GH₵1.2 million in 2023 to GH₵2.9 million in 2024, marking a 127 percent expansion. Additionally, equity grew by 51 percent, increasing from GH₵5.4 million in 2023 to GH₵8.1 million. This growth was primarily driven by the profits generated during the year.
At the 37th Annual General Meeting (AGM), Board Chair Seth Nii Sodjah Quao highlighted that the growth was fueled by strong performances in investment income and interest on loans & advances, as well as a nine percent increase in fees and commission income, which rose from GH₵1.4 million to GH₵1.6 million.
“Our turnaround strategy is yielding results, but we remain focused on long-term resilience and customer-centric growth,” he stated.
Despite economic headwinds, such as GH₵17 million in locked-up funds from the 2018 financial sector cleanup and GH₵35 million impairment from the Domestic Debt Exchange Programme (DDEP), total deposits and assets grew by 21 percent and 30 percent, respectively.
Mr. Quao informed shareholders that the Board of Directors proposed a dividend of GH₵759,777, equivalent to GH₵0.04 per share, pending approval from the Bank of Ghana (BoG). He expressed satisfaction at returning the bank to an era of paying dividends, emphasizing that meeting customers’ needs would be key to achieving long-term success.
In addition to financial achievements, the board chair noted the bank’s commitment to community development, having allocated GH₵100,000 each to the La Town Development Fund and the La Education Fund.
A shareholder, Samuel Dadzie, praised the growth in the bank’s total assets, which exceeded GH₵110,436,263, calling it significant progress deserving commendation. He urged the board to continue the growth trajectory while expanding the bank’s assets. However, he raised concerns about the loan portfolio, where just 20 clients accounted for about 43 percent of the bank’s loans, describing the situation as too risky and requiring restructuring.
The board chair acknowledged that the issue of high debt concentration among a few clients had been flagged by regulators, and management is actively working on addressing it.
Corporate Social Responsibility and Community Impact
The bank’s annual statement highlighted its dedication to social impact through various initiatives. In the education sector, the bank donated e-learning materials to Nii Amaa Ollennu Memorial School. In healthcare, it partnered with the Planned Parenthood Association of Ghana (PPAG) to provide free breast cancer screenings in La.
Outlook for 2025
The board remains optimistic about Ghana’s external sector stability in 2025, supported by gold and cocoa exports and remittance inflows. It emphasized organizational alignment, staff well-being, and an inclusive culture as key drivers for sustained growth.
“Strong foundations have been laid since we began our turnaround strategy, and I believe that we have focused on the right priorities as we continue to rebuild and strengthen the bank,” concluded the board chair.
Chief Executive Officer Peter Vanderpuije noted that the first half of 2025 has been encouraging, with all performance indicators showing positive variances. However, recent government policies have necessitated a shift in strategy. As a result, the management is reorganizing its loan sale strategy, diversifying its base, and introducing new products for new market demographics.
“In the second half of 2025, prudent fund management, reorganizing our microfinance business, and supporting startups remain sure bets to sustain our business,” he said.
