The performance of Ghana’s economy in 2015 fell short of that of 2014, Nana Owusu Anwona II, Board Chairman of the Nwabiagya Rural Bank, has said.
Speaking at the 28th Annual General Meeting (AGM) of the bank at Barekese in the Ashanti Region last week, he noted that the country’s economy had consistently remained stagnant since 2014.
“The performance of the Ghanaian economy did not change for the better compared with the situation contained in our report for the 2014 fiscal year. These developments contributed in no small way to the series of delinquent loans and increases in provisions made by banks for bad and doubtful debts.”
Recounting some of the difficulties the bank faced, he explained that the Bank of Ghana’s prime rate, which rose from 16 per cent in the first-quarter to 18 per cent in the fourth-quarter of 2015, greatly contributed to increased lending rates of banks and consequently prevented the private sector from accessing loans to further expand businesses in the country.
Nana Owusu Anwona II added that another major “devil” crippling the banking industry, as stated in the bank’s financial report is the over 150 per cent increase in corporate tax introduced with the coming into being of the New Income Tax Act 2015, Act 896.
According to the bank, the sharp increase in the new tax is making things difficult for most banks in the country as the increase was too steep.
However, in spite of the dire state of the economy, he said the bank was able to post significant gains at the end of the fiscal year, realising a pre-tax profit of GHS3,032,104 in 2015, as against GHS2,296,367 recorded in December 2014.
The bank’s paid-up capital also saw an increase of GHS448, 331.42 at the end of the year under review, moving from GHS1,839,427.71 in 2014 to GHS2,287,759.13 in 2015, while shares issued increased from 16,282,731 to 17,176,838, showing an increase of 894,107.
On the way forward for the bank, the Board Chairman disclosed that its immediate plans for the future are all geared toward the raising of the bank’s electronic platforms. “The bank, in collaboration with Energy Bank, has installed an ATM at the Bohyen branch. Similar installations are being carried out at Offinso, Tech Junction, Barekese, and the Abuakwa branches. The ATM accepts Visa, GH-Link and the E-Zwich cards,” Nana Owusu Awnona II stated.
He said the bank was in the process of introducing to its customers a point-of-sale device that would make the payment of deposits and other products very convenient to its busy customers.
Source: ClassFMonline
