The Abokobi Area Rural Bank Limited recorded an impressive financial performance of GH¢400,328 for the 2021 financial year as against GH¢93,296 in 2020, representing an increase of 330.11per cent.
Naa Odofoley Nortey, Board Chairperson of the Bank, disclosed this at the bank’s 30th Annual General Meeting at Abokobi in the Ga East Municipality of the Greater Accra Region.
The Board Chairperson of the Bank noted that the bank’s total assets rose from GH¢29.5 million in 2020 to GH¢35 million in 2021, making an increase of 20 per cent. She added that total deposits also grew from GH¢24.2 million in 2020 to GH¢30.4million in the year under review, registering an increase of 25.68 per cent with operating income increasing from GH¢4.9 million from 2020 to GH¢6.3 million, accounting for 29.13 per cent increase.
Naa Odofoley Nortey indicated that the business and micro-economic environment in which the bank operated during the fiscal year was very challenging. Naa Nortey added that the banking sector, and for that matter the economy, have been struggling to recover from the challenges posed by the financial sector reforms and the impact of COVID-19 pandemic in 2020.
The Board Chairperson moreover indicated that despite the Bank of Ghana’s continuous revision of regulatory policy measures to improve financial services and to support critical sectors of the economy, businesses undertake a lot of strategies to survive.
Naa Nortey stated that the banking sector remains generally liquid, profitable, well capitalized, and resilient, adding that the strong policy support and regulatory reliefs implemented to address the effects of the external factors such as COVID-19 pandemic continued to impact positively on the industry’s performance. “The dynamism of the banking environment continues to necessitate a clear path to stay ahead of the competition among other challenges in the industry,” she said.
Five-year Strategic Plan
That notwithstanding, Naa Nortey averred that the board is still focused on the five-year strategic plan as the policy direction to direct the growth of the bank.
“As a reminder and reinforcement of our quest, the strategic plan is aimed at three fundamental goals which are pursuing growth, maximizing shareholders value and community development. Our focus remains firmly on our mission which is to be the top rural bank in the Greater Accra Region through a well-motivated products and superior customer service in rural banking.”
Naa Nortey
The Board Chairperson noted that despite the Bank of Ghana’s temporal ban on the payment of dividend, the board and the management would continue to recognize the importance of enhancing and sustain the shareholders’ value maximization through ensuring the bank’s profitability.
Naa Nortey disclosed that the board and management wrote to the Bank of Ghana to apprise the payment of dividend for the year, adding that this humble request was based on the recognition that the shareholders have not received dividend on their investment for quite some time prior to the directive and “It is our hope that the request will be granted to enable us to meet your dividend expectation.”
Mr. Alex Kwasi Awuah, Managing Director of ARB Apex Bank Limited, on his part commended the bank for its sterling performance.
Mr. Alex Kwasi Awuah expressed hope that the bank would introduce more products to ensure profit sustainability in the ensuing years.
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