Abokobi Rural Bank to blaze the trial of RCBs
merger
Accra, Oct. 4, Ghanadot/GNA – The
Abokobi Area Rural Bank, one of the pioneer rural banks in
Ghana, is to blaze the trail of emerging as the first to
initiate a merger in the country to enable it survive the
growing competition and challenges pose by bigger banks.
The bank, which has for the past five years maintained a
consistent growth and good performance, was thrown this
challenge at its 17th Annual General Meeting on Saturday at
Abokobi, by the ARB Apex Bank, the umbrella body of Rural
and Community Banks (RCBs).
Mr Eric Osei-Bonsu, the Managing Director of the Apex Bank,
who said this noted, “You have been dynamic in developing
new financial products and repackaging existing ones to meet
the growing needs of your customers…
“It is my hope that Abokobi Area Rural Bank will blaze the
trail as the birthplace of the first merged RCBs in the
country by becoming the nucleus of a cluster of rural
banks…in the Greater Accra Region,” he said.
The reason, Mr Bonsu noted was for Abokobi bank to set the
pace for other RCBs and to allow it to survive in the face
of the changing, challenging, competitive and turbulent
landscape of the banking industry in country at present.
Banking business, he said, had become very competitive and
risky, and urged RCBs to minimize risks through the adoption
of effective risk management strategy.
He further lauded the Abokobi bank for expanding its reach
in the microfinance sector with the provision of financial
services custom made to low income persons.
The bank, which celebrates its silver jubilee anniversary
next year, posted a net profit of GH¢63,854.00 out of which
it declared a bonus share to its shareholders.
A shareholder of the bank with at least three shares would,
therefore, receive an additional share to enable the bank to
retain its profit for further expansion.
The 2008 profit, however, showed a decrease of 18.14 percent
compared to 2007 because of significant increase in the
provision for bad and doubtful debts for the year.
Mr Sam Clegg, the Board Chairman of the bank whose speech
was read on his behalf, accepted the challenge and said the
bank was bracing itself through sound banking practice and
vigorous expansion of its operations.
He announced that the bank stated capital as at December
2008 stood at GH¢156,546 with its total assets rising from
GH¢2.357.144 and GH¢2,411,544.
Shareholders fund, he said, went up at 55.5 per cent from GH¢233,010
to GH¢362.418 in 2007 and 2008 respectively, whilst total
deposit rose by 6.36 percent from GH¢1,826,029 to GH¢1,942,260.
Mr Clegg said the bank has decided to finance its own
computerization project whilst it waited for assistance from
the Apex Bank.
Two board directors including the Chairman, who retired as
members, were replaced by Mr Christian Gbikpo and Ms Naa
Odofoley Nortey.
The bank use the occasion to launch its silver jubilee
anniversary and inaugurated a planning committee comprising,
Ms Matilda Bruce-Arthur, the Managing Director of the, Mr
Jonathan Adamah, Assistant Manager Internal Audit, Mr Owusu
Sekyere, a board member, and Mr Eric Budu and Mrs Esther
Adjetey all of the bank.
GNA
