… records satisfactory growth
The Nwabiagya Rural Bank Limited at Barekese in the Atwima Nwabiagya district of the Ashanti Region has recorded a satisfactory operational growth of 13 percent in the 2021 year under review.
The Board Chairman, Andrews Kwarteng Amanning at the bank’s 34th Annual General Meeting (AGM) held in Kumasi noted that the 2021 financial year was characterised by turbulent economic uncertainties – sharp fluctuations in the economic fundamentals and shortages, mainly as a result of the COVID-19 pandemic’s ravages.
He however assured shareholders that stringent measures have been put in place to ensure the restoration of a positive income surplus in the near-future.
“The Board of Directors are unable to recommend payment of dividend to shareholders due to the negative income surplus in accordance with Section 31 of Act 2016 (Act 992). We therefore assure you that the Board and Management have put in place stringent measures to ensure a quick restoration of the bank’s income surplus.”
Mr. Kwarteng Amanning further stated that the bank has been able to recover GH¢3,300,703 in interest from the funds that were locked up with some Fund Managers, which significantly affected the (financial) results of the bank for the year under review.
He added further that the bank is poised to embrace all economic opportunities to ensure improved performance in the future.
Operating Results Financials
The Net Interest Income of the bank increased from about GH¢9.8million in 2020 to a little over GH¢11.1in 2021, representing an increase of 13.96%. Commissions and Fees increased by 2.21%, that is GH¢104,402 from approximately GH¢4.7million in 2020 to GH¢4.8million in 2021. Total operating income recorded an increase of GH¢3.2million, representing 20.23% from GH¢16million in 2020 to GH¢19.2million in 2021.
Economic Environment
The economic environment in which the bank performed during the fiscal year 2021 recorded some key indicators. Some of these economic indicators had an impact on the bank’s performance during the fiscal year. While the increase in inflation resulted in an increase of the operational cost, a decrease in Treasury-bill rate reduced the bank’s expected investment income during the period under review.
Operational performance
In spite of the major economic challenges as well as the many negative effects on operations of the bank, it was able to register a satisfactory performance in all indicators as shown in the table below.
Corporate Governance
The Board chair maintained that: “Nwabiagya Rural Bank is committed to the principles of good corporate governance in line with dictates of the Corporate Governance Directive for Rural and Community Banks.
“In the year under review, the Board intensified its oversight responsibilities over the activities of the bank. The diverse expertise of the bank’s Directors has made it possible for the Board to bring effective measures to bear on operations of the bank. Directors have a deep understanding of the requirements of oversight, which id expected to increase Shareholder value.”
Outlook For 2022
In the years ahead, the Board will maintain a high level of Stakeholder engagement – customers, communities, regulators (Bank of Ghana and ARB Apex Bank) and others. The Board will continue to focus on risk management in all aspects of the bank’s operations.
For example, the Board shall pragmatically engage risk matters relating to credit, operations, cyber security, etc. The Board will explore both the financial and money markets with an aim of obtaining maximum benefits for the bank.
“We pledge to control cost and thereby ensure efficiency in the bank’s operations. Customer satisfaction will continue to engage the Board’s attention, offering responsive products and solutions to these customers and prospective ones.”
