The Chief Executive Officer of the Upper Manya Kro rural bank, Andrew Akyampong has advised financial institutions in the country to adequately capitalize to curb the surge in panic withdrawals in the banking sector.
According to him, the rural bank has survived the banking sector turmoil which saw many financial institutions fold up because ‘they chose liquidity over profitability’.
Mr.Akyeampong was speaking on the sidelines of the 35th Annual General Meeting of the Upper Manya Kro rural bank at Asesewa in the eastern region.
The banking sector was hit with panic withdrawals following the collapse of some indigenous banks within a space of 12 months when Bank of Ghana embarked on a clean-up of the financial sector.
Most banks ran into liquidity challenges, while some, according to the Central bank, obtained operational licenses under illegal means.
Mr. Andrew Akyampong says banks that survived and have remained buoyant because they slowed down on credit and ensured they had enough liquid funds.
The board chairman of the bank said the bank recorded a 20 percent growth in total income from GH¢11.7million in 2017 to GH¢14.0million in 2018.
Photo: Premises of the rural bank
James Kwame Otieku, noted that operations cost also went up 25.4 percent in 2018 compared to the 4.9 percent recorded in 2017.
He added that total assets grew 7.14 percent from GH¢48.6million in 2017 to GH¢52.1million in 2018, while income surplus saw an 8.6t percent growth from the previous year’s GH¢2.99million to GH¢3.25million last year.
Additionally, total deposits recorded an 8.3 percent growth between 2017 and 2018 while total loan and overdraft disbursement in 2018 amounted to GH¢41.8million, representing an increase of 3.5 percent over the 2017 figure of GH¢40.4million.
Mr. Kwame Otieku appreciated the efforts of management and staff in recording this year’s modest growth, given the stiff competition in the deposit mobilization space in recent years.
He disclosed that the bank spent GH¢77,543 on corporate social responsibility, which goes to show its commitment to host communities.
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