Ashanti rural banks hold 14th BGM

Managers and Directors at the BGM

The Association of Rural Banks, Ashanti Chapter, has held its 14th Biennial General Meeting (BGM), at Pakyi No2  in the Ashanti Region.

The purpose of this event was to review the performance of the Chapter, and other developments within the rural banking industry.

During the year under review, 2018 – 2019, it was reported that the Income and Expenditure Account for 2019 showed an excess of GH₵11,153.36 as against GH₵1,345.35 in 2018, representing an increase of 729.03 percent. The increment was attributed to increase in member banks’ subscription, income received from investment.

Accumulated Fund also grew from GH₵ 204,396.97 in 2018 to GH₵ 214,050.60 in 2019, showing an increase of 4.72 percent.

Total Assets also increased by 5.16 percent, growing from GH¢ 206,431.86 in 2018 to GH¢ 217,078.49 in 2019

The President of the Association of Rural Banks – Ashanti Chapter, Mr. Patrick Owusu, said the operational results came as a result of prudent measures put in place by the Council and ably executed by the Secretariat.

He noted that performance of member banks under the reviewed  period was quite encouraging. Monthly Banks Performance Returns prepared by the Chapter indicated a significant growth in all the financial indicators namely; Deposits, Loans and Advances, Paid-up Capital, Networth, Profit before Tax and Total Assets.

The overall performance of the Banks in the Region as per the National figures comprising 141 banks including 26 banks in the Ashanti Chapter are shown below:

ITEM                          NATIONAL               ASHANTI           PERCENTAGE

GHs Million                GHs Million                %

Total Assets                  5,095.19                      1,896.86                 37.22

Gross Advance             1,695.39                          535.19                 31.57

Paid up Capital               220.76                            54.98                 24.90

Net worth                        410.31                          168.69                 41.11

Investment                    2,055.76                         842.05                 40.96

Profit before Tax                2 .02                              6.60               326.73

Deposits                        4,321.72                      1,627.10                 37.65

The performance of the RCBs in Region means that they captured an average of 34.71 percent of the total financial indicators in the ARB Apex Bank Report.

Mr. Owusu, noted that in spite of the excellent performance, “Paid Up Capital of member banks was on the low side and has to be improved.”

The banks, he said, need to draw up a comprehensive programme on Shares Mobilization drive to increase their shares in order to meet the Bank of Ghana requirements and any future increase of Paid-up Capital.

He said the performance of the banks in the Region truly attests to the number of member banks listed in the Ghana Club 100 in 2019.

“It is quite refreshing to note that most banks in the Region had maintained their positions in the Ghana Club 100 for the last ten years. Out of the twenty-two Rural Banks in Ghana listed for Ghana Club 100 Awards, ten Banks were from Ashanti,” he stated.

He mentioned the Ghana Club 100 winners in the Ashanti Region to include Atwima Kwanwoma, Otuasekan, Odotobri and Bosomtwe Rural Banks.

The others are Amansie West, Asokore, Atwima Mponua, Juaben, Amanano and Asante Akyem Rural Banks.

While congratulating the award-winning banks, he also entreated the other banks to work hard to achieve such honors.

He noted that the role of the Association is among others to advocate for member banks, help conflict resolution among member banks and within the banks as well as any other areas that will foster unity among the bank.

He disclosed that RCBs in the Ashanti Region were the most affected, in the financial sector clean-up, leading to GH₵134.8million of some 10 banks being locked-up.

In view of this, he said the Chapter in collaboration with the National Secretariat has contacted ARB Apex Bank to appeal to the Governor of Bank of Ghana and Securities & Exchange Commission to have funds deposited by the banks to be released.

He said, “It is refreshing to note that, some investments companies have started paying some monies to the affected banks as per government directives.”

Mr. Owusu said COVID-19 has affected the Credit Administration of banks, especially loans repayments of all categories except government salary workers and few individuals who are responding to their loan repayments schedules. “This has indeed affected the profit generation of the banks through loans delinquency.”

The National Secretariat in collaboration with GIZ organized a training programme on Managerial and Leadership Capacity Development for Lower and Middle Placed Female Management Staff of RCBs.

He urged RCBs to improve their strategies that will enhance the growth of their banks.

The Executive Director of the Association of Rural Banks – Ashanti Chapter, Mrs. Comfort Owusu, also speaking at the programme said building rural banking is a shared responsibility.

She, therefore charged that Directors and General Managers to have a bigger role to play while adding that prudent decisions should continue to be made to ensure resilient and sustainable rural banking sector.

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