Ga Rural Bank will meet minimum capital requirement -Board Chairman

The Ga Rural Bank, has assured customers that the bank will meet the Bank of Ghana’s (BoG) new regulatory minimum capital requirements of GHȻ1 million for all rural and community banks.

Additionally, the bank has maintained adequate liquidity reserve as required by the BoG to be able to continue to be a net lender to customers and operate effectively in a strengthened industry.

Chairman of the Board of Directors of the bank, Nana Bram Okae II, announced this in Accra last Saturday during the 26th annual general meeting of the Ga Rural Bank to discuss the bank’s operating results and other related matters within the 2017 financial year.

To consolidate the gains made by the bank in meeting all regulatory requirements, he urged all shareholders to increase their investment in the bank and encourage others to purchase more shares for an increase in capital base.

On the back of expanded regulations and positives in the macroeconomic environment, he noted that the bank recorded a profit before tax of GHȻ573,328 from which GȻ217,076 was paid as tax.

Total income, Nana Bram Okae II said grew by 18.38 per cent from GHȻ7,653,778 to GHȻ9,060,789 whilst total operating expenses increased by 14.81 per cent from GHȻ7,392,305 to GHȻ8,487,461.

Additionally, total assets grew by 21.35 per cent within 2017 due to a strong and growing deposits base which increased by 21.44 per cent from GHȻ29,874,685 to GHȻ36,281,116, he stated.

The growth in total assets, he explained was driven by a 119.58 per cent increase in investment securities and customer deposits, attesting to the strong liquidity position of the bank and success of innovative deposit mobilisation strategies.

Following the bank’s resurgence in its financial performance compared to 2016, the board he said had recommended an amount of GHȻ274,299 to be paid out as dividend, translating to a dividend of GHp7per share.

In line with its good corporate practices, the Board Chairman said the bank continued its support for social and infrastructural development with an amount of GHȻ49, 247 in its operating communities.

Going forward, Nana Bram Okae II said the bank would, in this year, deploy electronic channels including internet banking, school fees collections and mobile banking app known as ‘Ga-Connect’ which would run on a short code as part of enhancing customer service experience and engagement.

He noted that the bank’s ATM project has been completed and set for inauguration by the end of July this year.

In a related development, Nana Bram Okae II and his vice chairman, Dr. George Tetteh Mensah were re-elected to serve in the same capacities after they retired by rotation in accordance with statutory requirements and the bank’s regulations.

BY CLAUDE NYARKO ADAMS

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