Jomoro Rural Bank records impreesive turnover in 2017

Source: Paul Yankey

Jomoro Rural Bank Board Chairman, Prof. Cosmos Cobbold

The Jomoro Rural Bank posted yet another impressive performance of 19.77% profit before tax from GHc501,782.00 in 2016 to GHc601,006.00 in 2017.

An amount of Ghc9,044,714.00 was disbursed to small and medium scale enterprises, farmers, salaried workers in the bank’s catchment areas in 2017 compared to GHc6,832,927.00 in 2016.

Total income soared by 29.92% from GHc3,562,341.00 in 2016 to GHc4,026,959.00 in 2017.

Total expenses also increased from GHc3,562,341.00 in 2016 to GHc4,026,959.00 in 2017 recording a turnover of 31.58%.

Board Chairman of the Jomoro Rural Bank, Prof. Cosmos Cobbold told shareholders of the Jomoro Rural Bank at the 21st Annual General Meeting (AGM) at Tikobo No.1 in the Western Region.

He admitted that developments in the macroeconomic environment during the year under review was favourable which impacted positively on banking activities in the country.

On its Paid-Up capital, he announced that the Bank has met the GHc1,000,000.00 capital requirement mandated by the Bank of Ghana to be met by all Banks in the country.

Prof. Cobbold seized the opportunity to entreat shareholders of the bank to purchase more shares to shore up the bank’s capital and be forward-looking for any upward adjustments in capital in the future as Commercial banks have been mandated to do.

He said the bank could not declare dividends for the year ended 31st December 2017 due to its indebtedness and some shareholders who had not updated their records on the share register and would do so at the 22nd AGM in 2019.

Touching on corporate social responsibility to communities, institutions and individuals, over 30 students from various tertiary institutions in the country the opportunity to undertake their internships.

The bank also spent GHc10,105.00 in the areas of education, health, sports and culture to 16 bodies across the country with notable reference to Komfo Anokye Teaching Hospital in Ashanti Region.

The bank experienced remarkable improvements in all the financial indicators with a rise in Total Assets form GHc15,251,531.00 in 2016 to GHc18,202,225.00 in 2017.Total Deposits also soared from GHc13,013,963.00 in 2016 to GHc15,818,617.00 in 2017.

Investments also rose from GHc6,600,000.00 in 2016 to GHc7,500.000.00 in 2017 with Advances shooting up from GHc4,782,510.00 in 2016 to GHc6,270,472.00 in 2017.Profit after Tax also increased from GHc471,473.00 in 2016 to GHc532,675.00 in 2017.

Paid-Up capital also increased from GHc532,848.00 in 2016 to GHc1,018,588.00 in 2017 with shareholders fund also booming from GHc1,431,111.00 in 2016 to GHc2,039,526.00 in 2017.

On human capital development, the Board of Directors afforded staff of the Bank the opportunity to pursue approved programmes in various tertiary institutions in the country. The staff participated in internal training programmes and same organised by the Association of Rural Bank, the ARB Apex Bank and the Bank of Ghana.

Prof. Cobbold said the Jomoro Rural Bank had complied with the Bank of Ghana’s directive on corporate governance to sanitize the financial sector which among other things, limited the tenure of office of Directors to a maximum of three terms of three years per term and that of the Managing Directors/Chief Executive Officers were also limited to a maximum of 12 years of 3 four-year term.

The bank however appointed new Directors and Auditors to steer affairs of the Bank for another term.

The Managing Director of the ARB Apex Bank Mr. Kojo Mattah whose remarks were read by Madam Lucy Quansah, applauded the Board, Management and Staff of the bank for recording a profit before taxation and achieving other healthy financial indicators which were ample testimony of how resources have been well managed by the Bank.

She said the Banking sector of the economy had been going through challenging times leading to collapse and panic withdrawals emanating from corporate governance lapses in the administration of the Banks and the issue of lack of liquidity on inadequate operating capital.

“One of the key factors leading to poor corporate governance in the RCBs is the quality of personnel serving as Directors in some of the Banks”. The ARB Apex Bank, therefore, encouraged shareholders of RCBs to ensure that persons elected to serve as Directors on the boards should have a full appreciation of their roles as well as possess optimum skills to be able to fully appreciate financial ratios, loan and investment decision making in the banks.

She said the ARB Apex Bank was taking pragmatic steps such as making good corporate governance one of the key training themes at its annual operations meeting to help preempt some of the unpleasant corporate governance situations which have beset the Banks in recent times.

Madam Quansah said many depositors have become agitated due to some investors in the defunct Banks who have been finding it difficult to redeem their investments leading to panic withdrawals.

She announced that 100 RCBs have met the new minimum capital requirement of GHc1.00 million set by the Bank of Ghana of which the Jomoro Rural Bank is one and encouraged those RCBs banks which have not met the new minimum capital requirement to explore all available options to ensure that they are not sanctioned by the Bank of Ghana.

Madam Quansah charged all stakeholders to work very hard to sustain the Bank’s impressive results and the investments of the shareholders.

The Municipal Chief Executive (MCE) for Jomoro, Mr. Ernest Kofie said the Assembly and government would continue to deepen its ties with the Bank and support rural Banks to reclaim their position of importance by creating the enabling environment for them to thrive.

He lauded the Bank for the support it has given to farmers, fisher folks and various small-scale businesses in the municipality to boost the local economy.

Mr. Kofie said government had no option than to dissolve prestigious banks in recent times to save its nationals from having their monies in jeopardy and serve as a deterrent to other banks that were not enforcing appropriate banking standards and laws.

The MCE said as part of the Assembly and central government’s plan to bridge the gap in enemployment in the formal and informal sector by bringing development and growth in the small and medium scale businesses, the One District, One Factory, the planting for food and jobs initiative and the planting for export and rural development by government were serious investment opportunities for the people to support and promote. “The bank must position itself well to play a critical role to support in the realization of these laudable policies by government”

Mr. Kofie asked the bank to position itself well to match its foreign competitors who were trooping into the country. “The need for the bank to develop customized products to address the peculiar needs of the increasingly S.M.C. and also improve on customer services and invest strategically depositors money for higher returns cannot be overlooked”.

While commending the bank for its living up to its social co-operate responsibilities, the MCE tasked the bank to institute scholarship schemes to support brilliant but needy students in the Municipality.

Mr. Kofie reminded the bank of its tax obligation to the Assembly and central government and charged the bank to make maximum use of the serene environment created by government to project and support the growth and development of business in the Jomoro Municipality.

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