BUCOBANK boasts of sterling performance in the year under review

Chairman, Board of Directors BUCOBANK

Sandem-Nab (Left), Mr Daniel Syme, Fmr Dep UER Minister and Alhaji Adams Abdul Sherif Adams

The financial profitability of the Builsa Community Bank, BUCOBANK, has improved marginally with its Net Worth increasing by 17 point seven percent from almost two point 48 million Ghana Cedis in December 2014 to two point 91 million as at the end of same period last year. 

This impressive output is backed by a remarkable increase in the bank’s share capital of 10 point 6 percent, resulting in its aptitude to meet the minimum capital requirement set out by the Central Bank for Rural and Community Banks, RCBs. 

Delivering the 2015 annual report and financial statements of BUCOBANK, the Chairman of the Board of Directors, Nab Akanab Apoom-Ween says  management of the Bank is particularly  proud of the bank’s 2015 performance, in a year when the Ghanaian macroeconomic environment is faced with myriad of challenges arising from weakening currency and regular revenue shortfalls. 

Nab Apoom-Weem stated this at the climax of the bank’s 20^th anniversary and 16^th Annual General Meeting of Shareholders in Sandema.

Background

The Builsa Community Bank Limited, BUCOBANK, was in 2014 adjudged the best Rural Community Bank, RCB,  in the Upper East Region for the previous year  by the Association of Rural Community Banks in its maiden edition of Rural and Community Banks Excellence Awards. 

 As a result of its sterling  performance output, the Efficiency Monitoring Unit of the Association of Rural Banks, ARBs, placed the bank ahead of all the 16 Rural and Community Banks, RCBs of  Northern Ghana. 

The bank, despite its success story continues to perform creditably and has succeeded in making strides in the period under review.  

Last year, the profitability of the bank grew exponentially against the shortfalls in its profit before tax in 2014. 

This was a result of the general increase in operating cost during the year in addition to a more sustainable strategy adopted by the board in the wake of the uncertainty in the business environment. 

To ensure the protection of depositors’ fund against the risk associated with high yielding investments in loans and advances, the board decided to invest more in risk free assets. 

The move backed by sound financial discipline resulted in the growth of its total assets, which has skyrocketed by 75.8 percent in short term investments. 

Moreover, Loans and Advances Portfolios which remained the biggest item of the bank’s total assets resulted in a targeted growth of 6.6 percent in the year under review. 

Other incomes, especially in the area of share capital and net worth grew by a significant percentage. According to the Board Chairman of the Bank, Nab Akanab Apoom-Ween, the performance of the bank leaves much to be desired.

Aside its excellent achievements in profitability, BUCOBANK is the only rural bank within the rural banking sector of the region to have exceeded the mandatory minimum stated capital for RCBs, which is pegged at 500 thousand Ghana cedis for the year 2016. 

The bank therefore hopes to increase its share holdings to be able to meet the One million Ghana cedis set for 2017 by the Central Bank. 

The President of the Upper East Regional Chapter of the ARBs, Alhaji Abdul Sherif Adams, praised the bank for its 20 years of banking excellence and urged other RCBs to emulate their remarkable feat. 

While imploring the bank to improve on its products and service, Alhaji Adam denounced the increase in Corporate Tax of RCBs provoked by the new income tax Act of 2015. 

The sudden increase, he noted, comes as a potential threat to the survival of RCBs and should be looked at.

In a speech read for him, the Managing Director of the ARB APEX Bank Limited, Kwadwo Kusi Aye further urged the management of BUCOBANK not to be complacent in its quest to becoming the leading rural and community bank in the region. 

He said in the face of stiff competition from more financially endowed universal bank, it also behove RCBs to ensure strict adherence to best practices in the industry and consider merging as one of the surest ways in meeting Bank of Ghana’s share capital.

 In line with its shared vision of becoming a life changing financial institution that guarantees financial comfort, confidence and independence to its valued shareholders, the BUCOBANK has worked to improve the income levels of its shareholders and is poised to impact on the majority of the people in the area and beyond.

Story by Isaac Asare (GBC)