In the midst of operational challenges, the Ahafo Community Bank at Kukuom in the Asumafo South district of the Ahafo Region managed to record satisfactory growth during the 2020 year under review.
The year-year-on growth margin of total deposits increased by 30.13%, pegging the 2020 figure at over GH¢16.16million as compared to GH¢12.42million in 2019. The bank also posted 22.66% growth in total assets; it appreciated from GH¢14.98million to GH¢18.38million.
In the area of short-term investment the bank significantly improved its investment by 90.24%, increasing it from a little over GH¢3.15million to GH¢6million during the year under review. It also made advances to the tune of GH¢5.44million, representing 24.02% more over the previous year’s sum of GH¢4.38million.
The bank’s performance reflected on its reserves. As at close of the 2020 financial year, the primary and secondary reserves of Ahafo Community Bank stood at 10.41% and 44.72% respectively. In the face of Bank of Ghana’s minimum requirements of 8% and 30%, the above figures clearly show the bank’s strength.
The bank closed its books with stated capital of GH¢1,222,996 as against the BoG minimum threshold of GH¢1million.
The Chairman of Board of Directors, Rev. Kofi Sakyi, disclosed these developments at the 22nd annual general meeting of shareholders held at Kukuom. He said the outbreak of COVID-19 hampered operations of the bank: “The bank had to adjust itself to meet all the eventualities associated with this pandemic, which has seriously affected our operations”.
The Board Chairman also highlighted the seasonality of cocoa production as another challenge that continues to impair the bank’s desired growth. According to him, economic activities in the catchment area largely depend on cocoa and the bank sometimes face liquidity challenges during the lean season.
Notwithstanding the aforementioned challenges, Rev. Sakyi is optimistic about the bank’s future. He emphasised the adoption and adaptation of results-oriented strategies in the years ahead, so as to better the bank’s fortunes.
The strategies include opening of a new agency at Dadiesoaba, promotion of good corporate governance, compliance with statutory requirements, and strengthening the micro-finance department. The rest are enforcement of internal controls and improving customer care and service.
He acknowledged the directors, shareholders, management and staff as well as customers for their “invaluable contributions” to growth and development of the bank.
On his part, the General Manager of Ahafo Community Bank, Pobi Antwi Donkor, in an interview with B&FT commended customers and the general public for their confidence reposed in the bank despite the turbulence that wobbled the banking ecosystem in recent years.