ARB Apex Bank targets expanded microfinance oversight after GH¢34.56m profit

The ARB Apex Bank is preparing to take on a wider supervisory role across Ghana’s microfinance sector after reporting a profit before tax of GH¢34.56m for 2025.

The bank is expected to provide technical assistance, operational guidance and coordinated training as community banks move into a new regulatory framework introduced by the Bank of Ghana.

The central bank announced a broad restructuring of the microfinance and specialised deposit-taking institutions (SDI) sub-sector earlier this year. Under the reforms, ARB Apex Bank is being positioned as a central policy instrument for the industry.

Its responsibilities will extend beyond community banks to include microfinance banks, credit unions and last-mile financial service providers. The expanded mandate will require the bank to strengthen its systems, governance arrangements and capital base.

ARB Apex Bank’s latest financial results show a marked improvement in its performance. Profit before tax rose to GH¢34.56m, compared with GH¢25.44m, reflecting a reported 35% increase in a single year. The result was attributed to greater operational efficiency, improved liquidity management and efforts to create more value for community banks.

Total assets increased by 136.8%, from GH¢2.28bn in 2024 to GH¢5.40bn. The growth was supported by higher deposits, stronger liquidity flows and strategic investment activity.

Deposits rose from GH¢2.11bn in 2024 to GH¢5.13bn, while loans and advances increased by 47.9%, from GH¢121.97m to GH¢180.34m. That growth was below the 104.87% recorded during the same period in 2024.

Investments more than doubled, increasing by 114.5% from GH¢634.49m in December 2024 to GH¢1.36bn.

Profit after tax also rose by 135.94%, from GH¢19.91m in 2024 to GH¢46.97m. The bank said the increase reflected stronger revenue streams, disciplined cost controls, improved operational efficiency and deferred tax assets.

Shareholders’ funds climbed from GH¢49.47m in December 2024 to GH¢94.83m, supported by retained earnings and continued improvements in performance. The accumulated loss narrowed from GH¢63.34m at the end of 2024 to GH¢28.11m at the close of 2025.

Board chair Daniel Ohene K. Owusu credited the progress to the commitment of the bank’s members and governing board.

“Your commitment has strengthened our ability to deliver our mandate and to navigate a year marked by complexity and transformation. Your guidance and strategic insights have been instrumental in positioning the Bank on a stronger path towards sustainability and enhanced performance,” he noted.

Despite the reported profit, ARB Apex Bank did not recommend a dividend for 2025, following a nil dividend in 2024. The decision was linked to the continuing effects of the Domestic Debt Exchange Program and the accumulated loss of GH¢28,112,959, compared with GH¢63,339,991 in 2024.

Managing director Curtis William Brantuo said dividends could be paid in future if the bank continues its current financial recovery.

“In accordance with the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930), the Bank can only declare dividends upon recording net positive earnings. It is projected that significant gains will be made in the years ahead to rectify the negative retained earnings to be able to declare dividends,” he noted.

The bank’s stated capital rose from GH¢18.43m to GH¢23.43m during the financial year. The increase was largely driven by an annual GH¢5m contribution from community banks, aimed at reaching a targeted capital level of GH¢25m over five years.

“The enhanced capital foundation would place the Bank in a stronger position to support the growth of the community banks, absorb future economic shocks and invest in modern systems that will enable it to execute its mandate more effectively in the years ahead,” Mr. Owusu noted.

Under its corporate social responsibility programme, community banks donated GH¢1,129,591, compared with GH¢464,842 in 2024. Of that amount, GH¢927,900 was used for social initiatives, including support for health-related cases at Komfo Anokye Hospital and a kidney transplant.

A further GH¢100,000 was given to the national support fund for families of helicopter crash victims. The remaining GH¢224,842 was allocated to education and other community-based activities within the bank’s operational areas.

The Bank of Ghana reforms will require rural banks to convert into Community Banks and meet new minimum capital requirements by 31 December 2026. Existing banks will need GH¢5m, while new Community Banks will require GH¢10m.

ARB Apex Bank’s board said the changes would bring broader community ownership, revised governance structures and higher prudential standards. It also acknowledged that the new supervisory responsibilities would require further investment in technology, policy transmission, institutional development and coordination.

Despite those challenges, the bank remains confident that the reforms and its improving financial position will produce a positive outcome in the coming year.