Odotobri Rural Bank holds 32nd AGM .…climaxes 35th anniversary activities

Directors of the bank cutting its 35th anniversary cake

Odotobri Rural Bank has posted yet another impressive performance with improvements in key performance indicators, as its 2018 financial statement shows.

In the midst of the financial turbulence and volatility in which the bank operated in 2018, Odotobri was able to record a reasonable profit before tax of GH¢2.8million – even though it represents 16.62 percent lower than that of the previous year’s profit of GH¢3.3million.

The bank’s total assets hit GH¢126million as at December 2018, recording an increase of 18.57% from about GH¢107million the previous year.

At its 32nd annual general meeting, the bank – with its head office at Jacobu in the Amansie Central district of the Ashanti Region – added that it celebrated its 35th anniversary with a month-long activity which was climaxed with the AGM and a thanksgiving service.

Chairman of the Board of Directors, Bernard Asamoah Boateng, noted that although the year under review saw turbulence in the financial landscape with the collapse of seven universal banks, several savings and loan companies and micro finance companies, Odotobri Rural Bank redefined its strategies by considering its strengths, weaknesses and the external threats and opportunities to mitigate the far-reaching effects of those unanticipated challenges.

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Notwithstanding the above challenges, the bank competed favourably in 2018 financial year and is advancing in strength, as shown in the table.

The bank’s paid-up capital was about GH¢2.72million as at 31st December 2018, and had further increased to about GH¢2.8million by the close of business on 31st July 2019. The amount far exceeds the Bank of Ghana’s minimum threshold, and is about 280 percent more than the minimum GH¢1million all rural banks are required to be achieve by February, 2020.

“It has always been the Board of Directors’ priority that a good return is achieved on shareholders’ investment in the bank,” he said.

On this premise, the board proposed that an amount of GH¢610,628 be paid as dividend to shareholders, indicating 35% of GH¢1,744,653 – which is Net Profit After Tax for the 2018 financial year.  This means that the proposed dividend per share is GH¢0.0020 for the 2018 financial year.

During the year under review, the bank did not neglect its Corporate Social Responsibility; spending an amount of GH¢186,201 as part of its corporate social responsibilities to support socio-economic activities in communities where it operates and beyond.  Economic areas that benefitted include education, health and security among others.

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Chief Executive Officer of the Bank, Siaka Baaba Ahmed, in an interview with B&FT said the bank had taken the initiative to deploy a fully functional Mobile Banking Application (Mobile App) that is expected to be operational by the last quarter of 2019.

He said the application when deployed will allow customers to access their accounts 24/7 from anywhere in the world. Customers will be able to use the App to check their balances, load and pay beneficiaries, transfer funds from mobile money accounts to Odotobri bank accounts, transfer funds between Odotobri accounts, view account statements, top-up airtime, pay for Electricity, DSTV and GOtv bills, as well as many other transactions.

Performance at a Glance

Financial Indicators 2018

GH¢

2017

GH¢

Percentage

      %

  Change

Profit before tax 2,797,685 3,355,078  (16.62)
Investment  58,065,295  49,597,919.00   17.08
Advances  37,438,150.00  31,179,286.00   20.08
Total Assets 126,723,459.00 106,880,346.00   18.57
Total deposits 101,940,923.00

 

  83,801,919.00   21.65
Share Capital  2,720,504.00  2,557,382.00  6.38

 

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