- records growth in all indicators
- gets BoG’s exceptional approval to pay dividend
Okomfo Anokye Rural Bank PLC at Wiamoase in the Sekyere South district of Ashanti Region, having made efforts to put the bank back on the path of growth and profitability, has recorded a remarkable growth in all indicators for the 2022 year under review.
The bank recorded profit before tax of approximately GH¢1.9million in 2022 from about GH¢1.33million in the previous year, representing a satisfactory growth of 42.57%.
In spite of the challenges facing the bank as a result of the financial sector clean-up, the COVID-19 pandemic and the recent Domestic Debt Exchange Programme embarked on by government, the bank has returned to the path of high profitability as a result of prudent measures put in place by the Directors and Management.
Shareholders of the bank have therefore been assured that management and directors will continue working very hard to put in place necessary internal control mechanisms, to ensure the bank competes favourably with its peers and satisfies the expectations of shareholders accordingly.
BoG’s exceptional approval to pay dividend
The bank has received exceptional approval from the Bank of Ghana to pay dividend to their shareholders after the financial sector clean-up exercise, COVID-19 pandemic and recent Domestic Debt Exchange Programme embarked on by government.
This is because the bank met all conditions necessary for the payment of dividends to shareholders in accordance with the law. In view of the above, Directors of the bank recommend a dividend of GHp.38 with a total of GH¢336,717.07 to all shareholders whose names appeared on the bank’s shareholders’ register as at 31 December 2022.
Bank’s Balance Sheet
The bank’s Balance Sheet size increased by 35.96% from GH¢101million in 2021 to GH¢137million in 2022. The growth was driven by increase in deposits due to confidence reposed in the bank by clients. Fixed Assets on the other hand increased marginally by 0.71% during the year under review, from GH¢ 9.1million in 2021 to GH¢9.2million in 2022.
Deposits of the bank grew by 32.92% from GH¢93.4million in 2021 to GH¢124.2million for 2022. This achievement was the result of hard work and dedication exhibited by management and staff of the bank, through various deposit mobilisation strategies they adopted during the year under review.
Chairman-Board of Directors, Emmanuel Owusu Boakye, announced these and more at the bank’s 36th Annual General Meeting of shareholders held last Friday at the Salvation Army Church Auditorium at Wiamoase in Ashanti.
Operational Environment
According to him, Ghana’s economy entered a full-blown macroeconomic crisis in 2022 on the back of pre-existing imbalances and external shocks. This led to large financing needs, tightening financing conditions, exacerbated debt sustainability concerns and shutting-off Ghana from the International Financial Market.
Large capital outflows combined with monetary policy tightening in advanced economies put significant pressure on the exchange rate, together with monetary financing of the budget deficit, resulting in high inflation.
These developments interrupted the economy’s post COVID-19 recovery, as GDP growth declined from 5.1% in 2021 to 3.1% in 2022. The 2022 fiscal deficit was well above target at 11.8%. Public debt rose from 79.6% in 2021 to over 90% of GDP in 2022, as debt service-to-revenue reached 117.6%.
As the banks were strategising to mitigate the negative effects of locked up funds on their operations, government – which had become the only trusted Assets Management Avenue – also embarked on the Domestic Debt Exchange Programme (DDEP) that has also impacted negatively on RCBs which participated in it.
The Rural Banking Sector had a total of about GH¢1.1billion in Government of Ghana bonds that were affected.
Fortunately, Okomfo Anokye Rural Bank did not participate in the DDEP – and for that reason was not affected.
Operational Performance
Despite the unfavourable macroeconomic environment in which the bank operated during the 2022 reviewed year, it managed to pull off yet another remarkable operational performance in all financial indicators as shown in the table below.
Corporate Social Responsibilities
The bank continues offering assistance to communities and institutions within its catchment areas in terms of community development projects. In the year under review, the bank spent a substantial amount on corporate social responsibility activities toward stakeholders; with special focus on Education, Health and Security among others.
During the year under review, the bank constructed a 20,000-litre mechanised borehole for the Okomfo Anokye SHS to solve perennial water problems the school had been facing – and other social intervention programmes at a total cost of GH¢108,759 in 2022 as against GH¢58,574 spent during 2021.
Bank Rated Strong by EMU Report
Okomfo Anokye Rural Bank was rated and ranked 6th-Strong out of one hundred and forty-five (145) RCBs in Ghana in the 2023 2nd Quarter RCBs Performance Review by the Efficiency Monitoring Unit of ARB Apex Bank PLC – and has been very consistent in its performance since the second quarter of 2022 to date.
The following indicators were used by Apex Bank PLC to assess the status of Bank Capital, Asset Quality Ratios, Asset Utilisation Ratios, Profitability Ratios and Liquidity Ratios.
“We could not have achieved this success all by ourselves as Directors without the support and cooperation of Nananom, Former Directors, Former General Managers, Shareholders, Management led by their hardworking CEO, the entire bank staff – and above, all our loyal customers who have kept faith with us throughout the years,” the board chairman stressed.
Forty Under Forty Achievers Awards
The Board chairman was happy to announce that during the period under review, the bank’s CEO, Paul Kwabena Oduro, emerged as winner of the 2022 Forty under Forty Achievers Award (Banking and Finance Category); and within the same reporting period, he was also nominated to compete in the second edition of Ghana CEO Vision and Awards for 2023.
Future Outlook
The bank’s CEO, Paul Kwabena Oduro, in an interview with Business & Financial Times said management will continue seeking ways of strengthening and developing the bank’s operations to maintain the confidence that customers and shareholders have gained in it during recent times.
The bank’s business model, according to the CEO, is still tailored for the Micro, Small and Medium Enterprises, and will push for more market penetration as they develop new, innovative products and trusted relationships with its clients.
He stressed that the bank will intensify loan recovery, embark on intensive deposit mobilisation, strengthen internal controls while maintaining quality assets to increase profitability.
He also emphasised that the bank’s business focus in 2023 is on driving growth, innovations, efficiency and service as the main pillars in achieving profitability.
| INDICATORS | 2022
GH¢ |
2021
GH¢ |
PERCENTAGE CHANGE (%) | |
| Deposits | 124,264,551 | 93,485,214 | 32.9 | |
| Investment | 63,821,317 | 51,368,389 | 24.24 | |
| Loans and Advances (Gross) | 40,740,510 | 34,222,823 | 19.04 | |
| Fixed Assets (Gross) | 9,203,972 | 9,138,652 | 0.71 | |
| Total Assets | 137,782,072 | 102,010,949 | 35.96 | |
| Stated Capital | 1,584,159 | 1,495,459 | 5.93 | |
| Shareholders Fund | 5,654,941 | 4,040,234 | 39.97 | |
| Gross Income | 23,930,198 | 16,885,300 | 41.72 | |
| Expenditure | 22,034,848 | 15,555,913 | 41.65 | |
| Profit before tax | 1,895,350 | 1,329,387 | 42.57 | |
