Otuasekan Rural Bank Limited at Kofiase in the Sekyere West District of Ashanti Region has posted yet another satisfactory growth in almost all financial indicators in the 2017 year under review.
The Bank recorded an impressive growth in its stated capital from approximately GH¢ 1.48million in 2016 to a little over GH¢1.75 million in 2017, representing an increase of 19.06% which exceeds the minimum threshold of GH¢1 million required by all rural banks in Ghana.
However the General Manager, John de-Graft Owusu has said the bank is going to begin an aggressive share mobilization exercise to raise the share capital to an appreciable level to always stand ready should the Bank of Ghana decide to come up with any upward review.
The demand for the Bank’s shares has gone up significantly due to its outstanding performance for the past three years. The relatively low price per share coupled with high returns on shareholders’ funds has also contributed to the high demand for the Bank’s shares.
The directors of the Bank say they are determined to grow the bank’s minimum share capital to an appreciable level by the end of the year 2019 to avoid any unfortunate situation as has been seen happen recently in the banking industry.
The Chairman of the Board of Directors, Dr Nana Akowuah Boamah made these affirmations and more at the Bank’s 29th Annual General Meeting of shareholders held last Friday at Kofiase in Ashanti.
According to him Ghana’s GDP grew by 7.9% in 2017 as compared to 3.7% in 2016. The exchange rate also saw some relative stability with the cedi depreciating by 4.5% against the U.S dollar at the end of the year. Inflation as at December 2017 was 11.8% while Government of Ghana Treasury Bill ended the year with a rate of 13.3% as compared to 16.8% in 2016.
In spite of the unfavourable macroeconomic environment in which the bank operated during the reviewed year, the bank managed to pull yet another satisfactory operational performance in almost all the financial indicators in the year under review as shown in the table.
The Bank continues to offer assistance to communities and institutions within its catchment areas in terms of community development projects and financial support which amounted to GH¢43, 409.41 as compared to GH¢34,112 spent in 2016.
Directors of the Bank have recommend the payment of a dividend of Gh¢ 0.072 per share, amounting to Gh¢ 573,340.50 for the year ended 31st December, 2017. The dividend paid per share for the year 2016 was the same Gh¢ 0.072.
The bank continues to be rated as “STRONG” as per ARB Apex Bank Evaluation and Monitoring Unit (E.M.U) Report for the 1st Quarter 2018. Out of 144 rural banks in Ghana, Otuasekan Rural Bank is rated as the 9th strongest bank and the 2nd in Ashanti.
The Bank is still a proud member of the prestigious Ghana Club 100 and has also continuously received awards from Ashanti Financial Service Excellence Awards organized under the auspices of Otumfuo Osei Tutu II, the Asantehene.
|Profit before Tax||2,675,827||3,112,510||-14.02|
|Profit after Tax||2,293,362||2,113,127||8.52|