The ARB Apex Bank PLC has initiated steps to shore up its stated capital to enable it to undertake big ticket projects to consolidate growth.
According to the Managing Director of ARB Apex Bank, Alex Awuah, the Bank was expected to increase its stated capital from GH¢9 million to GH¢25 million within a period of five years.
The bank he noted, would raise the capital in equity from member Rural and Community Banks (RCBs), which are the sole shareholders of ARB Apex Bank.
The move he explained, was informed by the inability of Apex Bank to undertake major projects on behalf of RCBs and their customers.
The Apex Bank MD said this in a speech read for him at the 36th annual general meeting of Kintampo Rural Bank at Kintampo in the Bono East Region.
He said “The bank has tried a few times to shore up the minimum capital by raising equity from member banks, but our attempts have not been successful. The good news is that the Board of Directors have approved a new four-year Strategic Plan that allows us to raise GH¢25 million over a five-year period.”
To this end, he said there would be an extra-ordinary general meeting to enable shareholders take decision on it.
Addressing the meeting, the outgoing Board Chairman of Kintampo Rural Bank, Yaw Effah Baafi, announced that despite external and domestic economic turbulence in 2021, the bank posted strong growth in key financial performance indicators.
He said the bank closed the financial year with a profit before tax of GH¢1.83 million, representing 26. 39 per cent increase over the previous year’s achievement of GH¢1.44 million.
The bank’s assets he indicated, grew by 12.92 per cent from GH¢55.09 million to GH¢62.22 million.
According to the Board Chairman, customers’ deposits on the other hand, increased marginally from GH¢39.45 million in 2020 to GH¢43.65 million in 2021, showing 10.65 per cent change.
During the year under review, the bank’s total loan portfolio surged by 32.74 per cent, increasing from GH¢14.05 million to GH¢20.04 million, he added.
Mr Baafi further stated that shareholders’ fund soared from GH¢10. 94 million to GH¢12.30 million, representing 12. 43 per cent growth while the bank maintained it strong capital position with a minimum paid-up capital of GH¢2.86million.
He disclosed that the Board of Directors recommended a dividend per share of GH¢0.020, amounting to a total pay-out of GH¢417,480.26. However, payment of the proposed dividend would be subject to approval by the Bank of Ghana.
From: Daniel Dzirasah, Kintampo
