Okomfo Anokye Rural Bank records 52% growth in profit

The Okomfo Anokye Rural Bank Limited at Wiamoase in the Sekyere South district of the Ashanti Region has posted another satisfactory operational performance in the 2017 year under review.

The bank posted a pre-tax profit of approximately GH¢972,423 in the 2017 year under review as against a little over GH¢638,000 in the previous year, representing an impressive growth of 52.5%.

This comes with the improved revenue generation raising total income from a little over GH¢9.2million in 2016 to approximately GH¢11million, representing19.40% growth, which is a reasonable improvement in the bank’s income generation activities and reflects careful execution of strategy during the year under review.

The bank’s total deposits grew from GH¢31.1million in 2016 to a little over GH¢37million in the year under review – representing 20% of the 2016 performance, even though government domestic borrowings resulted in high interest rates on Treasury bills during the year under review. This was as a result of the hardworking staff and mobilisation drive pursued by management and staff.

Chairman of the Board of Directors, Mr Kennedy Obiri Yeboah, announced these and more at the bank’s 32nd Annual General Meeting of shareholders held last Thursday at the Salvation Army Church auditorium at Wiamoase.

According to him, Ghana’s economy witnessed a more favourable macroeconomic environment in the 2017 year under review. Macroeconomic indicators such as interest rates, inflation, foreign exchange rates were declining throughout the year.

See Also:  Banks to publish bank-specific cyber security policies soon - BOG

External reserves build-up improved and provided a significant buffer against potential external vulnerabilities.

There were however banking sector challenges which resulted in two universal banks collapsing. This did not significantly affect confidence by the public in banks, as the collapse was well managed in such a way that depositors did not lose their deposits.

The Bank of Ghana also increased minimum capital requirements of Commercial Banks to GH¢400million by 31st December 2018, so as to strengthen the Banking sector and maintain a stable economy.

In the Rural Banking sector, a drastic increase from the previous year’s corporate tax of 8%pa to 25%pa continues to threatening the ability of rural banks to meet the minimum capital requirement and retain sufficient profits for development.

In spite of the challenging macroeconomic environment that pertained during the reviewed year, the bank managed to pull yet another impressive operational performance in all the financial indicators as indicated in the table.

The Directors have recommended the payment of dividend at GH¢243,106  or  0.00344Gp per share  – representing 33.3% of the bank’s net profit of GH¢729,317 – to shareholders whose names appeared on the register as at 31st December 2016.

The bank continues to provide support to communities and institutions within its catchment areas, spending a total of GH¢21,795 on Corporate Social Responsibility.

Areas of the economy that benefitted include education, health, security, government agencies among others.

See Also:  Justice Theodora Wood appointed 2017/2018 AIG Fellow

The General Manager of the bank, Mr. Peter Abako Goriya, in an interview with Business & Financial Times said the bank’s business focus in 2018 is on driving growth, innovations, efficiency and service as the main pillars in achieving profitability.

The bank’s business model, according to the General Manager, is still tailored for the Micro Small and Medium Enterprises and will push for more market penetration as they develop new and better products and trusted relationships with clients of the bank.

He emphasised that the bank will continue to pursue a massive share and deposit mobilisation, follow stringent cost reduction policies, strengthen internal control measures, and develop the human capital to meet demands of functioning profitably in the competitive rural banking environment.

The Board Chairman in his concluding remarks acknowledged the Board, Management and staff’s commitment to the bank’s objectives, and said their individual and collective efforts have culminated in significant improvements of the operational results for 2017 financial year.

Item(GH¢) 2016 2017 Change
  GHs GHs %
Deposits 31,148,824 37,392,468 20.0%
Investments 12,257,324 13,385,196 9.2%
Total Assets 38,015,705 44,381,222 16.7%
Loans and advances (net) 16,460,968 19,383,953 17.8%
Share Capital 1,178,151 1,263,100 7.2%
Income 9,270,397 11,073,340 19.4%
Expenditure 8,632,921 10,100,917 17.0%
Pre-tax profit 637,477 972,423 52.5%
 Profit after Tax 478,108 729,317 52.5%
Net worth 3,541,199 4,237,374 19.7%

Leave a Reply

Please Login to comment
Notify of