The Board of Directors of the Atwima Kwanwoma Rural Bank at Pakyi No2 in the Ashanti Region has voted GH¢320,000 as dividend for the 2009 year under review which work out to GH¢0.004 per share.
This represents an increase of 60% over the preview year’s figure of GH¢200,000; the Chairman of the Board of Directors of the Bank, Bernard Joe Appeah announced this at the Bank’s 27th Annual General Meeting held recently.
Even though the Bank’s pretax profit reduced marginally by 7% from approximately GH¢ 786,400 in 2008 to about GH¢729,900 in 2009 the Board was able to vote that amount as dividend to be paid to shareholders.
Currently, shareholders’ funds as a percentage of total deposit stand at 17.1%. According to the Board Chairman, the current share capital of GH¢364,293 is inadequate and is the only key indicator that the Bank places second in Ashanti Region and 10th among the 131 RCBs in Ghana.
He reiterated that there were possible indications that the Central Bank might increase share capital requirement RCBs to keep pace with current trends in the financial sector.
“The major challenge is how to get shareholders and potential ones to buy more shares to meet the expected share capital increase from the Bank of Ghana and to facilitate growth and expansion” he stressed.
Deposits of the Bank grew by 27.4% from about GH¢ 17, 373 200 in 2008 to a little over GH¢22, 140,400 in 2009 while the Bank’s assets also went up by 19.5% between 2008 and 2009.
The future performance of the Bank is very promising. This is because as at August 2010, pre-tax profit has increased from GH¢ 640,400 in 2009 to GH¢ 933, 395, a percentage increase of 45.7%. Cost income ratio has also reduced by 75%. Total deposits of the Bank have increased appreciably to 28% from about GH¢ 19, 216,200 in 2009 to a little over GH¢ 24,606,400 and staff morale is considerably high.
The Bank has been advised to take up technological innovations designed for the banking industry in the form of e-Zwich, Electronic Financial Analysis and Surveillance System (e FASS) and the Cheque Code line Clearing (CCC) as well as the Automated Clearing House (ACH). In addition, the Apex Bank would also migrate its star product, the Apex Link Money Transfer Product onto an ICT platform very soon to make it more efficient, fast, and safe.
In an address read on his behalf, Mr. Eric Osei-Bonsu, Managing Director of the ARB Apex Bank Limited cautioned the Board and the Bank not to relent in their efforts but to step up their deposit mobilization drive and to make credits available to people in their catchment area who are engaged in various economic activities.
Through this intervention, he said the Bank would be fulfilling its mandate in meeting the objective of RCBs engaged in financial intermediation. He said the banking business has become very competitive and risky, and with the current pace of development in ICT, Atwima Kwanwoma Rural Bank would in no doubt be assuming additional risks and take on board new challenges. According to him, to minimize risk, there was the need for effective risk management which includes an awareness or recognition of risk as an initial a risk management policy to identify, assess, monitor and control operational and credit risks among others.
He further mentioned that risk management incorporates all activities required to identify and mitigate the vulnerabilities to which the Bank may be exposed. According to him, internal controls are designed to add value and efficiency to the Bank’s operations by minimizing the incidence of irregularities and malpractices.
“There is therefore the need to strengthen your internal control mechanisms to ensure that adequate and effective measures are put in place to enhance standards and improve performance, for the attainment of the overall objectives of the Bank”, he advised.
Source: B&FT
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