By: Ewurabena Paha
The Rural Banking Sub Sector followed the growth trajectory of the major banking industry with a recorded growth of 122.4 percent in profit before tax from 160 million cedis in December 2022 to 364.8 million cedis in December 2023.
Growth in total assets was 30.1 percent year on year from 8.4 billion as of the end of December 2022 to 11 billion cedis in December ending 2023.
These growth were announced by the Board Chairman of ARB APEX BANK, Dr Tony Aubynn at its 22nd Annual General Meeting held at Kumasi over the weekend.
Dr Aubynn also announced that with prudent management, the bank turned the loss position of 103 point five million cedis at the end of December 2022 to an unprecedented profit before tax of 20 point five million cedis as at the end of December 2023.
Despite the remarkable performance recorded in the sub sector, the compounding effective from participating in the domestic debt exchange program DDEP and locked up funds of some Rural Community Banks RCB’s with securities and exchange commission disturbed overall growth.
Dr Tony Aubynn said the bank worked with regulators to address the challenge.
The banks deposits also grew from 101 billion in 2022 to 1.22 billion cedis in 2022. Despite the DDEP ‘s effect on the banks investments, it saw an increase from 432.4 million in 2022 to 510.1 million cedis in 2023.
The effect of the DDEP on the banks’ performance was the main focus of the Managing Director of APEX Bank Alex Kwesi Awuah’s report to shareholders.
He said the development is affecting the operations of banks whose funds are locked up, urging the central bank to swiftly ensure the matter is addressed.
The bank did not propose the payment of dividends for the year under review. This is because the Bank of Ghana directed the suspension of declaration and payment of dividends and other distributions to shareholders.
According to the banks’ auditors Ernst and Young, the ARB APEX BANK generally complied with the provisions of the corporate governance disclosure directive 2022 issued by the Bank of Ghana.
The ARB APEX BANK is a mini central bank for the rural and community banks RCB’s across the country. It was registered as a public limited liability company in January 2000.
The bank has, over the years, continued to operate as the central processing centre for all rural and community banks in the country.
