Banking Sector: Mumuadu Rural Bank In Good Standing, Ranked First In Eastern Region, 4th In Ghana And Beats The Statutory Capital Requirement
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Even as BoG are revoking the licenses of many financial institutions in the country, Mumuadu rural bank on the other hand is making a lot of profits surpassing the statutory capital requirement of a financial institution.
The reputable rural bank has eight (8) branches in nine districts in the eastern region and has won three prestigious awards in the financial year 2017/2018 and was adjudged the best rural bank in eastern region in that same financial year.
Addressing stakeholders at the 31st Annual General Meeting (AGM) of Mumuadu rural bank at the Presbyterian Church in Osino on Saturday 24th August, 2019, the directors and board members took turns to reveal the financial standings of the bank.
Total Earnings
Mr Seth Adom- Asomaning, Board Chairman and president of the eastern regional chapter of the association of rural banks revealed that total earnings in the year under review increased by 10.95% from ₵18.9 million in 2017 to ₵21million in 2018.
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Meanwhile, total expenses increased by 14.6% from ₵16.1million in 2017 to ₵18.6million in 2018
The financial report again revealed that the Primary reserve of the year was 10.60% i.e. 2.6% above the required 8% and Secondary reserve of 39.20% was above the statutory requirement of 30%. The capital adequacy ratio of 15.70 shows a capital excess of ₵3.6million at the end of the financial year. The minimum capital adequacy ratio required by BoG is 10%.
It is good to note that the bank’s total access increased from ₵63.4million in 2017 to ₵70.1million in 2018 representing a 10.6% growth.
The bank increased its short and medium term investment by 8.95% from ₵18.2million in 2017 to ₵19.9million in 2018.
The balance of advances outstanding after provision for bad and doubtful debt as at 31st December 2018 amounted to ₵36.7million compared to that of ₵30.6million in 2017. This represents an increase of 20.04% after provisions for bad and doubtful debt.
Deposits however increased from ₵44million in 2017 to ₵50.6million in 2018 representing an increase of 14.6%.
Shareholders fund also saw a shoot up from ₵9.4million in 2017 to ₵10.1million in 2018.
Profit
The Mumuadu Rural bank recorded a whooping ₵2.5million as profit before tax and ₵1.8million as the net profit after tax. A dividend of 0.0184 per share which amounts to ₵533,540 is to be awarded each shareholder.
Microfinance Operations
It was however, disclosed that Mumuadu disbursed an amount of ₵10.5million in 2018 as group loans which also revealed an increase in group numbers from 421 to 485 with a membership of 878 for males and 3,743 for females.
Corporate Social Responsibility
The bank increased its Corporate social responsibility expenditure from ₵67,637 to ₵93,517 in 2018. Notable expenses: The bank supported the Farmers Day celebration in all the 8 branches of the bank covering 9 districts and Municipal assemblies. Payment of health bills and supporting Kyebi School of death and other schools. Awarding scholarships and renovating Osino Police station.
Awards
The bank won three prestigious awards in the year under review.
(1) Banking Institution of the year and Loan Service Award given by SME Ghana Awards.
(2) Rural Banking Impact Award of the year by Ghana Banking Awards.
(3) Ranked at 31 among top 100 best companies in Ghana called Ghana Club 100. Fourth (4th ) among the 44 rural banks that featured and first in the eastern region.
The representative of the District Chief executive of Fanteakwa south commended the institution and urged them to push more.
The Chief of Osino, likewise, charged them to uplift their standards to remain the best in the locality.
Mr Benedict A. Agabeh, MD for Apex Bank congratulated them for such a feat and like Oliver twist, asked them to do more especially when BoG is cleaning the banking sector.
The 31st AGM ended in peace with the zeal of doing more to expand the banking sector.
By: Radio1News|Ghana| Obido Nana Gyasi
