Otuasekan Rural Bank Limited at Kofiase in the Sekyere West district of Ashanti Region has posted yet another remarkable growth in almost all financial indicators for the 2018 year under review.
After the regulator’s successful clean-up excerise, the bank intends to continue strengthening and implementing good corporate governance policies and practices; and also ensure that management adheres to these policies and improves upon the systems and controls, as well as ensure regulatory compliance.
The bank also intends to develop Micro Finance as a Unit within the Credit Department to take its rightful position in assisting small- and medium-scale enterprises (SMEs).
The primary objective is to allow customers access to Micro finance loans on flexible terms so as to deepen financial intermediation, which is one of the core mandates of rural and community banks.
Another critical area of growth the bank wants to look at is leveraging the available technology and digital channels the ARB Apex Bank Limited has rolled out for the RCBs. This will enable the bank to meet demands of its customers, which will result in improvement of the bank’s income flows and market penetration.
The bank therefore continues to intensify its loan recovery, deposit mobilisation, and strengthen internal controls while maintaining quality assets to ensure the bank’s profitability.
The bank’s investments will be diversified to ensure safety and utilise returns on assets and shareholders’ funds efficiently. Despite competition in the banking industry and turbulent nature of the financial sector in the country, coupled with numerous challenges facing the banks, the bank will continue to support its cherished customers within its catchment areas to improve upon their living standards.
Chairman of the Board of Directors, Dr. Prince Stephen Adom Atakora, made these affirmations and more at the bank’s 30th Annual General Meeting of shareholders, held last Friday at Kofiase in Ashanti.
According to him, Ghana’s economic performance improved in the year 2018. All the major macroeconomic indicators improved with exception of the cedi, which cumulatively depreciated against the US dollar by 8.4% as compared with 4.9 in 2017.
Inflation rate as at December 2018 was 9.4% as compared to 11.08% recorded in the year 2017, while government of Ghana Treasury bills ended the year with a rate of 14% as compared to 13% in 2017.
In spite of the unfavourable macroeconomic environment in which the bank operated during the reviewed year, it managed to pull yet another significant operational performance in almost all financial indicators for the year under review, as shown in the table below.
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¢38,084 as compared to GH¢ GH¢43,409 spent in 2017.
Directors of the bank have recommended paying a dividend of Gh¢0.038 per share, amounting to Gh¢573,340 for the year ended 31st December, 2018.
The bank’s General Manager, Mr. John De-Graft Owusu, in an interview with Business & Financial Times stressed that the bank will continue to pursue a massive share and deposit mobilisation exercise, particularly to raise enough capital so the bank can stand ready for any regulatory directive regarding increase in share capital.
According to him, the bank’s business focus in 2019 and beyond is on driving growth, innovations, efficiency and service as the main pillars in achieving profitability.
Mr. De-Graft Owusu is of the view that the rural banking industry has a purpose for which it was established, and Otuasekan Rural Bank will not move away from its core objective of ensuring that the communities in which it operates see the kind of development they desire to have.
|Profit before Tax||2,079,557||2,675,827||-22.28|