Akwapim Rural Bank grows deposits
The Akwapim Rural Bank in the Akwapim North Municipal Area in the Eastern Region grew its deposits from GH¢30,878,452 in 2015 to GH¢39,958,151 in 2016, regardless of the numerous challenges the banking sector experienced in the year under review.
Advertisement
The figure, representing 29.4 per cent increment in the deposit mobilisation, according to the Board Chairman of the bank, Mr George Kwasi Oware, was made possible due to the trust the bank had gained from the customers.
Mr Oware disclosed this in his address at the 36th annual general meeting (AGM) of the bank held at the Methodist Girls’ Senior High School at Mamfe in the Eastern Region.
Performance
He said the Net Interest Income (NII) of the bank recorded an appreciable growth of GH¢7,848,487 in 2015 to GH¢9,635,113 in 2016, accounting for 22.8 per cent increase.
He explained that that was due to the bank’s increased earning capacity as earnings assets (loans/advances and investments) increased by 25.6 per cent from GH¢35,476,380 in 2015 to GH¢44,561,021 in 2016.
Mr Oware, however, said a combination of increased corporate tax rates, rising cost of business and higher provision for bad and doubtful debts resulted in a drop in post-tax profit by 24 per cent from GH¢2,652,965 in 2015 to GH¢2,015,084 in 2016.
He added that the effects of the increased corporate tax rates constituted 70.41 per cent out of the total drop in profit.
He said total assets and liabilities of the bank increased by 23.8 per cent from GH¢41,103,548 in 2015 to GH¢50,901,851 in 2016.
Touching on the performance of the bank’s share capital, Mr Oware said the bank’s paid-up capital increased from GH¢1,621,000 in 2015 to GH¢1,673,331 in 2016, an increase of 3.2 per cent.
He, therefore, urged the customers of the bank to continue to buy more shares in order to strengthen the bank in terms of paid-up capital.
{loadmodule mod_banners,Nativead1}
Efforts
According to him, a strong capital base would position the bank to expand its branches even beyond its catchment areas. Mr Oware commended the staff and board members of the bank for their tireless efforts to make the bank the
preferred financial institution in the Akwapim North municipality.
He hinted that plans were far advanced for the bank to open a new branch at Madina in the Greater Accra Region.
Awards
He said the bank was adjudged the overall best rural bank in the country in 2015 by the Association of Rural Banks Excellence Awards, held at Winneba in the Central Region.
In addition, he said, the bank moved from 64th position in 2015 of the Ghana Club 100 to the 61st position in the year under review.
Background
Akwapim Rural Bank Limited was incorporated on August 29, 1980 making it the 12th rural bank to be established in the country and the third in the Eastern Region.
The bank currently operates in five areas: Adukrom, Nsawam, Koforidua and Aburi, with its head office at Mamfe.
The bank offers services such as fixed deposit, Akusika Account, Medoba Account, Akuplus, Fixed Deposit Plus, microfinance credit with education, savings account, current account and institutional loans.
Others include transport loan, Asore Nkoso Loan, Afahye Loan, salary loans, salary advance, funeral loan, hospitality loans, Agro loan and Cottage Industry Loan.
Appeals
The General Manager of the bank, Mr Samuel Mbir, said the bank would continue to introduce innovative products and services to boost the confidence of its clients.
Advertisement
He, however, appealed to the government to consider reviewing the corporate tax downwards.
He said the increment in the corporate tax rate from eight per cent to 25 per cent was affecting the operations of most rural banks in the country.
Mr Mbir said if the corporate tax rate was allowed to stay at 25 per cent, many rural banks would be out of business.
Apex Bank
The Greater Accra Regional Manager of ARB-Apex Bank, Ms Halima Oboshie Torto, who represented the General Manager of ARB-Apex Bank, commended the bank for winning the overall best rural bank in the country in 2015.
Advertisement
She, however, admonished the bank to collect all of its overdue loans in order to grow so that it could offer financial services to its customers.
Side attraction
As part of its 36th AGM, the bank honoured some of its hardworking staff for their dedicated service.
It also offered a health screening exercise for the customers who attended the AGM while other take-home prizes were given to all customers who came to the AGM.