Nwabiagya Rural Bank holds 36th AGM of shareholders: Posts 263 % growth in profit

By Seth KRAMPAH, Barekese

Nwabiagya Rural Bank PLC at Barekese at the Atwima Nwabiagya District in the Ashanti Region has held its 36th Annual General Meeting of shareholders and posted a remarkable growth in all financial indicators for the 2023 year under review.

The bank recorded a significant profit before tax of a little over GH? 13.8 million as against approximately GH? 3.8million in 2022 representing a significant growth of 263 % which translates to a little over GH¢ 10 million in absolute terms.

This significant achievement gives hope to the Directors that the bank will be able to reverse the adverse balance in the retained earnings from profits within a reasonable period of time.

The bank’s Management Performance Review as at August 2024 has revealed a profit before tax of about GH¢ 9.9 million with deposit of a little over GH?271million. This is a significant performance and therefore the Board and Management are doing everything possible to ensure sustained operational efficiency to end the year well to give value to shareholders.

However, the Bank was unable to declare and pay dividend even though the Bank was able to make an impressive profit for the year under review. This unfortunate situation is due to income surplus which the Board is sparing no effort to deal with to resume the payment of dividend going into the future.

By this, existing shareholders and prospective ones have been urged to buy more shares to set the Bank’s growth pattern on the long-term objective of making positive impact in the communities they operate.

The Chairman of the Board of Directors, Prof. Samuel Adjei-Nsiah announced these and more at the bank’s 36^th Annual General Meeting of shareholders held last Friday at Barekese Community Centre at Barekese in Ashanti.

Operational Environment

According to him, the Nation’s business environment improved marginally following the economic and business challenges experienced in 2022. The economy witnessed some rising unsustainable debt and pressure on public finances.

The effect impacted on the Gross Domestic Product (GDP) performance and the local economy recorded a GDP growth rate of 2.9% in 2023, compared with a growth rate of 3.1% in 2022.

However, there were major improvement in the performance of rural banking sector during the year under review. The sector recorded growth in profit-before-tax of 122.4% from GH¢164.0 million in December 2022 to GH¢364.8 million in December 2023.

Total Asset grew by 30.1% from GH¢8.4 billion at the end of December 2022 to GH¢11.0 billion as at December 2023. Deposit increased by 31.1% from GH¢7.4 billion in December 2022 to GH¢9.7 billion.

Operational Performance

In spite of the challenging macroeconomic environment coupled with the unprecedented high inflationary rate that pertained during the reviewed year, the bank managed to pull a very remarkable operational performance in all key financial indicators.

The Bank recorded a deposit growth of 22% from a little over GH¢181 million in 2022 to approximately GH¢220million in 2023.

Total Assets increased from about GH¢178 million in 2022 to GH¢227 million in 2023. Capital Adequacy Ratio (CAR) increased from (17.11) in 2022 to (29.54) in 2023 due to write-offs.

The 2023-year end recorded locked-up funds of GH¢32million representing 29.87% of the total investment of GH¢107million compared to 48.81% in 2022.

SOCIAL RESPONSIBILITY

The Bank continues to provide support to various state institutions and stakeholders within its catchment areas. Some projects supported within the bank’s catchment areas during the year under review included that of the Traditional Councils, Ghana Education Service (GES), the Ghana Police Service, and support for Farmers’ Day Celebration.

The Board Chairman stressed that the bank is socially responsible and would continue to support projects and engage in environmentally friendly activities in the years ahead.

FUTURE OUTLOOK

The Chief Executive Officer of the Bank, Mrs Helen Adjei – Yankey in an interview with Business & Financial Times said the Bank would continue to put in pragmatic measures to ensure positive growth and achievement of the Strategic Plan of the Bank.

She stressed that the Bank would intensify loan recovery, embark on intensive deposit mobilization, strengthen internal controls and maintain quality assets to increase profitability.

She has also emphasised that the Bank’s business focus in 2024 is on driving growth, innovations, efficiency and service as the main pillars in achieving profitability.

Mrs Adjei – Yankey stressed the Bank would develop the human capital to meet demands of functioning profitability as well as achieving the objective of overcoming the shocks of the unfriendly macro economy and rising cost of living as well as its devastating effects.

Distinguished shareholders, your bank Nwabiagya Rural Bank recorded remarkable performance in many key performance indicators during the year 2023. The bank recorded an impressive profit- before

Distinguished shareholders, your bank Nwabiagya Rural Bank recorded remarkable performance in many key performance indicators during the year 2023. The bank recorded an impressive profit- before GH¢3,798,086, and this gives hope that your bank will be able to reverse the adverse balance in the retained earnings from profits within a reasonable period of time. Deposits recorded 22% growth from GH¢181,139,976 in 2022 to GH¢220,272,748 in 2023. Total Assets increased from GH¢178,122,772 in 2022 to GH¢227,154,327 in 2023. Capital Adequacy Ratio (CAR) increased from (17.11) in 2022 to (29.54) in 2023 due to write-offs. The 2023 year end recorded lock-up funds of GH¢32,153,928 representing 29.87% of the total investment of GH¢107,621,260 compared to 48.81% in 2022

The General Manager of the Bank Mrs Helen Adjei Yankey in an interview with Business & Financial Times said the Bank’s business focus in 2020 is on driving growth, innovations, efficiency and service as the main pillars in achieving profitability.

She has emphasised that the Bank would, follow stringent cost reduction policies, strengthen internal control measures and develop the human capital to meet demands of functioning profitability as well as achieving the objective of overcoming the shocks of the clean – up and the COVID-19 pandemic and its devastating effects.

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