Business News of 2013-12-18

Apex Bank develops five-year strategic plan

The ARB Apex Bank is developing a new five-year strategic plan to focus on providing efficient services to Rural and Community Banks (RCBs) for improved customer satisfaction.

The five-year strategic plan, which runs from 2014 to 2018, would create a platform in which the unbanked and the under-banked would participate while the new direction of the ARB Apex Bank would also include an enhanced ICT platform to support RCBs and a multi-channel delivery strategy.

Mr Kwadwo Aye Kusi, Managing Director of the Bank, said this in a speech read on his behalf during the 13th Annual General Meeting of the Bangmarigu Community Bank Limited at Walewale in the West Mamprusi District.

The AGM, which was on the theme: “Improving Rural Livelihoods through mutual partnership” was meant to take stock of last year’s activities and to deliberate with shareholders measures to improve quality service delivery to attract more customers.

Mr Kusi appealed to shareholders of the Bangmarigu Community Bank to increase their shareholdings to enable it have long-term funds to expand and also to meet the current statutory capital requirement of 300,000 Ghana cedis. He appealed to borrowers to repay their loans on time to keep the bank in business.

He advised management of the Bangmarigu Community Bank to put in place new programmes and policies to sustain and improve operations saying, “You need to put in place, improvement of microfinance business, risk management, internal controls and compliance, staff training, product development and deposits and customer service”.

Mr Gumah Ahmed Yakubu, the Bangmarigu Community Bank Board Chairmen, expressed satisfaction about the bank’s performance over the years and expressed the hope that due the giant strides chalked, more customers would be attracted.

Giving an overview of the bank’s performance, Mr Yakubu said the bank recorded a net profit of GH¢137,943.00 for 2012 as against a net profit of GH¢34,633.00 in 2011, representing an increase of 298 per cent.

Assets of the bank grew from GH¢3,110,716.00 in 2011 to GH¢4,803,707 in 2012, an increase of 54 per cent whilst shareholders’ funds also increased from GH¢547,912.00 in 2011 to GH¢685,496.00 in 2012 recording a growth of 25 per cent.

Customers deposits recorded an amount of GH¢3,410,901.00 in 2012 as against that of GH¢2,267,986.00 in 2011, an increase of 50 per cent and outstanding loans and overdrafts portfolio increased by 47 per cent from GH¢853,371.00 in 2011 to GH¢1,251,463.00 in 2012 whilst the number of beneficiaries decreased by six per cent from 4,455 customers in 2011 to 4,178 in 2012.

He said construction of the bank’s permanent premises was almost complete and gave the assurance that the bank would take full occupancy of the building before the next AGM and expressed the hope that shareholders would appreciate the strides made by the bank so far.

Mr Yakubu said to fulfill its mission statement of bringing quality banking services to all parts of the district and beyond, an agency of the bank would soon be operational at Yagaba and more agencies would be opened at strategic places depending on the growth of the bank and customers.