According to the Chairman of the Board of Directors, Alexander Koomson, the Brakwa Breman Rural Bank Limited (BBRB) saw a 25% improvement in its profit margin before tax in 2021 compared to the previous year, 2020.
He claimed that the bank increased its profit before taxes from GH101,977 in 2020 to GH363,580 in 2021, a considerable improvement in the firm's profit margin from the prior year.
AGM
Speaking during the bank's 34th annual general meeting (AGM), he noted that the bank's total assets climbed from GH22,518,121 in the year 2020 to GH24,288,938 in the following year, marking a cumulative appreciation of 7.86%.
According to him, overall deposits climbed by 2.78 percent from GH19,553,650 in 2020 to GH20,097,280 in 2021. "Net loans and overdrafts portfolio climbed from GH9,161,167 in 2020 to GH11,652,422, showing an increase of 27.19%," the statement reads.
Equity status
He claimed that the bank's equity position also rose, rising from GHC 1,793,243 in 2020 to GHC 2,034,138 at the conclusion of the 2021 fiscal year, or 13.4% more than the year before.
Adding that "the bank made the requisite provision against its late loans as well as cumulative provision for bad debt climbed from GH341,754 in 2020 to GH479,448 in 2021, reflecting a rise of 40.29%," he pointed out that return on equity grew from 5.69% in 2020 to 17.87% in 2021.
He said that "the board would like to urge all current and future shareholders to enhance the ownership" since "the paid up capital of the bank grew from GH1,086,271 in the year 2020 to GH1,091,571 in the year 2021, reflecting an increase of 0.49 percent."
In order for the bank to continue competing in the rural banking market, he stated, "the prospects of the bank remain bright and that we urge shareholders to acquire more shares."
E-banking solutions
Mr. Koomson stated that the bank will develop the necessary skill set to compete with banks that have open banking architecture, allowing BARB to offer banking services on solid technological foundations.
To implement services like agency banking solutions across its catchment regions, he stated, "in line with this and in addition to our reliance on Apex Bank, we will explore strategic partnership with additional partners."
The e-banking market is evolving at a very fast rate, which would help the bank to improve its services to customers, create sustainable value for stakeholders, and minimise and diversify its risk, he emphasised, adding that "this would involve cash-in-cash-out, remittances, and other value-added services."
Commendation
In a speech that was read on his behalf, ARB Apex Bank PLC's Managing Director, Alex Kwasi Awuah, praised the bank's stakeholders, clients, board of directors, management, and employees for their outstanding work despite the obstacles they faced.
He said that "the profits realised by BBRB last year and other sound financial indicators as stated in the board chairman's report were adequate proof of the appropriate management of the bank's resources."
It is significant to note that your bank had an acceptable rating and was placed 34th out of 145 rural and community banks (RCBS) following the Apex Bank's performance evaluation of RCBs in the first quarter of 2022, according to Mr. Awuah.
He also urged current customers to pay off their debts so that new customers may take advantage of the bank's lending, adding, "I wish to appeal to the shareholders to purchase more shares which is crucial to the continuing competitiveness and existence of the bank.