The Ghanaian Journal

Abokobi Rural Bank, one of the earliest established rural banks in the country on Saturday said it was poised to maximize shareholder value through effective implementation of sound banking practice.

Speaking at its 15th Annual General Meeting, Mr. Sam Clegg, Board Chairman of the bank assured shareholders that the board was initiating policies that would position the bank better even in the face of stiff competition from other sister banks.

Despite its sustained progress in terms of profit and assets growth in the past years, the Abokobi bank has had a chequered history with the appointment of Managing Directors.

This situation became the hottest issue at this year’s general meeting compelling majority of shareholders to demand explanation for the bank’s inability to work with Managing Directors for a long time.

They said a greater commitment from the board was required in order to reverse the trend because such situation could deter prospective clients and customers of the bank.

Mr Clegg said the bank recorded a gross profit of 212.78 million cedis for the year 2006 as against 440.45 million cedis earned the previous year.

This he said explained why the bank declared a lower dividend of 100 cedis (0.01 Ghana Cedis) compared to 150 cedis in 2005.

Total deposits recorded a 21.6 per cent increased from 12.654 billion cedis in 2005 to 15.393 billion cedis for the year under review.

The bank’s total assets currently stand at 18.411 billion cedis as against 15.317 billion in 2005.

Mr Clegg said the future was bright and therefore urged shareholders to increase their holdings and prospective ones to buy the Banks shares for enhanced value.

Mr Emmanuel Kwapong, Managing Director of the ARB Apex Bank, which is the umbrella body of all rural banks in the country in a speech read for him challenged the Abokobi bank to continue to add value through innovation, commitment and trust.

He said the board must always be guided by the principles of good corporate governance in its operations since it was essential in any financial institution.

Mr Kwapong said in order to further strengthen the operations of rural banks, Parliament had passed the ARB Apex Bank Limited Regulations, 2006 (L.I 1825) to assist banks to solidify their operations and make them viable financial institutions.

He said with support from the Millennium Challenge Account (MCA), all rural banks’ head offices and agencies would be computerised within three years, enabling them to be integrated into the national payment system.

Chairing the meeting, Nii Samuel Adjetey Mohenu, the Abokobi Mantse said sound corporate practices must take into account the interest of shareholders in order to maintain greater confidence in management.

He called for effective collaboration between the bank and shareholders which must be done in an atmosphere of peace and understanding that would spur on growth rather than retard progress.

A new Director, Mr Fred Lokko was elected to replace Mr Edmund Owusu-Sekyere, the out-going Vice Chairman of the Board.
GNA