The Nwabiagya Rural Bank Net Interest Income increased in the face of economic challenges from GH¢9,089,122 in 2020 to GH¢11,178,784 in 2021, representing an increase of 3.96%, while commissions fees increased by 2.2%, from GH¢4,715,533 in 2020 to GH¢4,819,935 in 2021.
Total operating income recorded an amount of GH¢3,247,826, representing 20.23%, from GH¢16,051,597 in 2020 to GH¢19,299,423 in 2021.
Mr. Andrew Kwarteng Amaning, Chairman of the Board of Directors of the Bank, who disclosed this at the 34th Annual General Meeting, stated that the Nwabiagya Rural Bank was committed to the principles of good corporate governance, in line with the dictates of the Corporate Governance Directive for Rural Community Banks.
According to him, the Board intensified its oversight responsibilities over the activities of the Bank in the year under review, and noted that the diverse expertise of Directors had made it possible for the Board to put effective measures to bear on its operations, and had a deep understanding of the requirements of oversight which was expected to increase shareholder value.
Mr. Amaning stated that the 2021 Financial Year was characterized by turbulent economic uncertainties, sharp fluctuations in the economic fundamentals, and shortages, all mainly a result of the ravages of the COVID-19 pandemic.
He said the economic development created anxieties for both individuals and institutions, and that the Bank was not exceptional, with its ability to recover GH¢3,300,703 in interest from funds that were locked up with Fund Managers significantly affected the financial results of the Bank for the year under review.
He reiterated that the Bank is poised to embrace all economic opportunities to ensure improved performance in the future, adding that pragmatic efforts have been put in place with the aim of providing more robust customer- care banking solutions, as they recognized that, successful recovery of hardcore loans, closely monitoring of top management performance target and the remaining locked-up funds with Managers will give a further boost to the Bank’s performance.
The Board Chairman underscored that, the economic environment in which the Bank performed during the 2021 fiscal year recorded some key indicators, some of which had impacted on the Bank’s performance during the fiscal year, while increase inflation resulted in increase in the operational cost, decrease in Treasury bill rate reduced the expected investment income of the Bank during the period under review.
He said the banking sector’s performance remained strong in 2021 and that available data showed sustained growth in total deposits and investments.
The industry’s assets, he said, expanded on the back of the continued increase in total deposits during 2021, while credit growth remained sluggish because of the Corona Virus (COVID-19) pandemic.