Rural banks’ directors and senior managers schooled to interpret Financial Statements and reports

Rural banks’ directors and senior managers schooled to interpret Financial Statements and reports
Mrs. Comfort Owusu, Executive Director-Association of Rural Banks, Ghana

Financial Statements and Cash Flow Analysis is the process of analysing a bank’s financial statements for decision-making purposes.

This, according expects, is also used by external stakeholders to understand the overall wellbeing of an organisation, as well as to evaluate financial performance and business value. Internal constituents also use it as a monitoring tool for managing the finances of a bank.

It is therefore in this regard that the Association of Rural Banks, Ghana put together a 2-day training programme in Kumasi to equip directors and senior managers of rural and community banks with deeper understanding of interpreting Financial Statements and Cash Flow Analyses.

The training’s primary objective is to update and develop the skills of stakeholders in rural banks to analyse financial information, business activities; and the key risks faced in today’s uncertain economic, political and physical global business environment.

The training programme also seeks to guide participants through the key steps of analysing financial statements, evaluating new investments and measuring the performance of banks.

It is also expected participants will be able to relate their learning to real-world issues and problems, and develop their abilities to generate growth and improve profitability – as well as pinpointing problem areas for remedial action and having the opportunity to acquire financial skills and technical knowledge that will enable them to manage more effectively.

In an address, Executive Director of the Association of Rural Bank, Ghana, Mrs Comfort Owusu, emphasised that the 2-day comprehensive training in Interpretation of Financial Statements and Cash Flow Analysis will enable each participant to appreciate and understand the basics and certain complexities associated with the chosen topic; along with terminology, concept and applications, as well as several techniques used for financial statement analysis.

She further mentioned that in gaining a perspective of interpreting financial statements and cash flow analysis, participants will gain a valuable understanding of this all-important component of business management – and thus be capable of contribute meaningfully to their banks with respect to their ability to read and understand the financial position of their competitors; and be able to do what the business environment requires of them and remain in business at all times.

According to her, the development training programme’s primary objective is to help directors and senior managers of rural banks analyse and interpret an organisation’s annual report and accounts, and use ratio analysis to evaluate financial position and financial performance.


The training will also afford them an opportunity to use analytical techniques to forecast future performance; critically evaluate the impact of cash flow on financial position; performance of the subjective nature of accounting policies; and identify the impact of profit, cash flow and risk on capital investment projects as well as business valuations.


The consultant, Mr. Michael Osikoya – who is also CEO of Mikensy Consulting Limited, took participants through basic rudiments of the chosen topic, as well as the principal objectives and benefits; and the need to take such techniques in financial management very seriously, particularly in the competitive present-day business environment.


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