…reports strong financial performance
By Emmanuel AKOMEA, Aburi
Akuapem Rural Bank PLC has held a stakeholder engagement to express appreciation and receive feedback from its customers and shareholders in a brief but colourful ceremony.
The third edition of the stakeholders’ engagement brought together numerous customers, shareholders, directors, management and staff of the bank. The event aimed at gathering feedback on the bank’s services and performance for the 2023 review period.
In a speech, the Board Chairman of the Board of Directors, Kwame Gyeke-Amoako, indicated that the bank reported robust results for the year, showcasing significant growth and positive outcomes across key financial indicators.
Comparing the audited financial statements of the previous year to the current year, Akuapem Rural Bank demonstrated remarkable progress in various aspects of its operations. Deposits increased by 25.67 percent, reaching a total of GH¢85,000 while investments grew by 18.92 percent to GH¢72,500. The bank’s total assets also saw a substantial rise of 27.85 percent, reaching GH¢110,000.
One of the standout achievements was the profit before tax, which surged by 190.50 percent from GH¢1,200,000 to GH¢3,480,000. Despite this significant growth, the bank maintained a low Non-Performing Loan (NPL) ratio of 2.50 percent, well below the industry benchmark.
The increase in profits was attributed to the growth in the loan portfolio, which expanded by 52.30 percent to GH¢35million in the current year. A significant portion of this growth came from lending to small and medium enterprises (SMEs), with the SME loan portfolio increasing by 480.25 percent from GH¢1.5million to GH¢8.7million.
Analysing the loan portfolio by sector, loans to agriculture, education and healthcare sectors all saw substantial increases in portfolio size. Despite the growth in lending activities, the bank effectively managed its loan classification, maintaining a prudent level of Expected Credit Loss (ECL) across all sectors.
The management expressed appreciation to stakeholders for their continued support and engagement during this period of growth. They reassured stakeholders of their commitment to safeguarding their interests and delivering sustainable returns on their investments.
“We also thank our shareholders for your sacrifices and patience. The Board, Management and staff assures you that we will continue to protect your investment to pay dividend whenever our regulator gives us approval,” Mr. Gyeke-Amoako said.
Following the event, the Chief Executive Officer (CEO) of the bank, Kingsley Kyere, shared his satisfaction with the feedback received from stakeholders.
The CEO announced that the bank was launching an initiative to enhance customer service and operational efficiency by expanding its operations to better serve customers. As part of this effort, the bank will collaborate with established mobile money agents who will serve as the bank’s representatives, enabling customers to conduct transactions seamlessly.
By doing so, Mr. Kyere believes it will bring about a host of benefits, including increased deposits and decreased operational costs. By reducing foot traffic and electricity consumption, the company aims to create a more efficient and cost-effective banking experience for its customers.
“We are committed to exceeding our customers’ expectations and providing them with an enhanced banking experience, embracing this new initiative and transitioning to a virtual set-up. We are confident that we will be able to better serve our customers and adapt to the changing landscape of the banking industry.” Mr. Kyere said.
