The Ashanti regional manager of the Association of Rural Banks (ARB) Apex Bank Ghana has lauded board of directors and management of the Kwabre Area Rural Bank PLC for ensuring good corporate governance in its operations during the 2022 reporting year.
Mr. Kofi Owusu said no bank or corporate financial institution can make profit, progress or even survive in this economically challenging time without strict adherence to the sector corporate governance policy guidelines.
The ARB Apex Bank regional manager said his outfit is very impressed with the bank’s corporate governance records which has resulted in steady progress in a little over four years of operation.
Mr. Owusu made the commendation in his fraternal message at the bank’s 3rd Annual General Meeting AGM) held at Kodie in the Afigya Kwabre South district of the Ashanti region over the weekend.
The manager observed that all indicators captured in the bank’s 2022 financial statement shows that the bank is on the path of steady progress and urged management to continue to be guided by all banking sector rules, practices and processes that guarantee profit and protect customers and shareholders investments.
He adviced shareholders not to seek profit in the early days of the bank’s existence but instead help management expand its operations.
He therfore encouraged shareholders to buy more shares to enable the bank raise enough equity to open additional branches with focus on deposit mobilization in order to maximize profit to be able to pay dividend in the near future.
Board Chairman of the bank, Mr. Louis Kwachie in his report disclosed that the year under review was very challenging especially for banking institutions.
He attributed the operational loses recorded in most banks during the year under review mainly Government’s Domestic Debt Restructuring policies and other internal and external economic factors.
He said the board and management had to go extra mile to be able to manage its operational loses since many otherwise stronger and well-grounded banks for the first time in many years in history recorded huge operational losses.
Mr. Kwachie assured customers and shareholders that KWARB is on course to becoming a giant in the rural and community financial services delivery in the region and the country.
“Our bank had its fair share of the challenges but in all, we can report that Kwabre Area Rural Bank Plc is still on course to be among the leading RCBs in financial service delivery in the country”, last sentence of the second paragraph of the chairman’s report stated.
The board chairman pointed out that the bank performed well in all operational indicators.
Total Assets:
He disclosed that the banks Total Assets of the bank grew by 106 percent from GHS1,929,170 in the previous year to GHS3, 980,0015 during the year under review.
Deposits:
Mr Louis Kwachie announced that commended customers and stakeholders of the bank for their confidence which also resulted in increase of the bank’s Total Deposit by 208% from 1,142,035 last year to 3,526,206 in 2022.
Investments, Loans and Advances
The board chairman further announced that the bank’s total investment, loans and advances and stated capital all saw a tremendous growth of 309, and 230 percent respectively.
Stated Capital:
The Board Chairman disclosed that the stated capital of the bank increased from GHS1,614,831IN 2021 to GHS1,848,561 in 2022 representing 14.47% growth rate.
He reported that the Bank of Ghana (BoG) has approved the bank’s stated capital of GHS1,833,141 in addition to the GHS15,420 that the bank purchased which is yet to be regularized before the end of the financial year ending in 2022.
Way Forward:
Mr. Louis Kwachie said management could not embark on its proposed expansion drive last year due to inadequate share capital to operationalize the plan. He appealed to shareholders to increase their current shares by 40% to enable management to raise enough equity for expansion next year.
Chief Executive Officer of the bank, Gilbert Osei-Gyimah in an interview after the meeting said management is conscious of the current challenges of the banking sector and as such will make the prudent decisions that will yield profit and protect customer and shareholder investments.
The CEO thanked customers and shareholders of the bank for the confidence reposed in management and their commitment to the progress and development of the bank.
He also commended the regional management of the ARB Apex Bank, Board of Directors and management and staff of the Kwabre Area Rural Bank for their team spirit and cooperation.
