… records growth in all indicators
Otuasekan Rural Bank Limited at Kofiase in the Sekyere West district of Ashanti Region has posted yet another satisfactory growth in almost all financial indicators for the 2021 year under review.
The bank recorded profit before tax of approximately GH¢1.7million in the year under review as against a little over GH¢1.5million the previous year, representing 17.11% growth; meanwhile, total assets stood at approximately GH¢135million as against a little over GH¢122million in 2020 at 10.49% growth.
The bank’s stated capital grew from approximately GH¢2,435,346 in 2020 to a little over GH¢2,458,995 in 2021, representing a marginal growth of 0.97% – which exceeds the minimum GH¢1million threshold required of all rural banks in Ghana by 145.90%
Operational Environment
Chairman of the Board of Directors, Dr. Prince Stephen Adom Attakora, said these and more at the bank’s 33rd Annual General Meeting of shareholders held last Friday at Kofiase in Ashanti.
The Board Chairman mentioned that Ghana’s economy expanded by 5.4% in 2021, far higher than the 0.4% recorded in 2020 – a period in which the COVID-19 pandemic hit the economy. The government of Ghana Treasury-bill for 91 days decreased from 14.1% in 2020 to 12.14% in 2021.
The inflation rate at end December 2021 was 12.6% as against 10% during the same period of 2020, with the Bank of Ghana’s Policy Rate increasing from 14.08% in 2020 to 14.5% in 2021.
Operational Performance
Despite the unfavourable macroeconomic environment in which the bank operated during the reviewed year, it managed to pull yet another satisfactory operational performance in almost all financial indicators as shown in the table below.
|
Indicators |
2021
Amount (GH¢) |
2020
Amount (GH¢) |
% Change |
| Deposits | 116,938,571 | 104,941,044 | 11.43 |
| Investments | 77,231,240 | 69,591,853 | 10.98 |
| Advances | 36,394,922 | 30,357,198 | 19.89 |
| Total Assets | 134,657,984 | 121,879,273 | 10.48 |
| Share Capital | 2,458,995 | 2,435,346 | 0.97 |
| Shareholders’ Funds | 12,754,609 | 12,178,549 | 4.73 |
| Profit before Tax | 1,704,408 | 1,455,396 | 17.11 |
Dividend
The Board did not recommend dividend payment for the 2021 financial year, based on the Bank of Ghana’s Directive (Notice No. BG/GOV/SEC/2020/03) dated 12th April 2020 directing all Banks and Specialised Deposit Institutions to desist from declaring and paying dividend.
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, it spent an amount of GH¢114,808 on corporate social responsibility activities toward the stakeholders, with special focus on Education, Health and Security among others.
Rated Strong
Otuasekan Rural Bank was rated strong and ranked 15th out of 145 Rural and Community Banks (RCB) in Ghana, in the RCB’s Quarterly Performance Review for the 1st quarter by ARB Apex Bank.
Future Outlook
The bank’s CEO, Mr. John De-Graft Owusu, in an interview with Business & Financial Times said management will continue seeking ways of strengthening and developing the banks’ operations to maintain the confidence that customers and shareholders have in it.
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 clients of the bank.
