Odotobiri Rural Bank is paying 20 percent of its profit after tax as dividend to its shareholders. The good news follow two years of no dividend payment.
This comes after the Bank of Ghana reviewed its directive that prevented financial institutions from paying dividends for 2019 and 2020 financial years.
“It is worthy to mention that Bank of Ghana has issued directives on revision on the suspension of distribution of dividends. The Board of Directors after assessing the performance of the Bank do hereby recommend payment of 20% profit after tax as dividend for the year ending 31st December, 2021 to members. 20% profit after tax translates into an absolute figure of GH¢385,632.67 and dividend per share is GH¢0.0012”, Chairperson for Odotobiri Rural Bank, Mrs Georgina Addai said.
She said this during the 35th annual general meeting (AGM) of the bank held at Jacobu in the Ashanti Region.
Meanwhile, not all rural banks in Ghana can or have met the Bank of Ghana’s criteria for the payment of dividend for 2021 financial year.
Mrs Addai continued that shareholders should be glad that the Bank of Ghana has approved the payment of dividend.
“I am highly enthused that our bank has received approval to pay dividend from Bank of Ghana after rigorous examination of the Bank’s financial position. I must say that not all Rural Banks in Ghana can meet Bank of Ghana criteria for the payment of dividend for 2021 financial year. Shareholders should be glad that Bank of Ghana has approved the payment of dividend for 2021 financial year”.
The bank’s financial performance for the period showed growth in all major indicators.
It, among others, extended its loans and overdraft facilities with an increase of 11.43 percent during the financial year.
Increasing advances to GH¢48,038,793 to customers, from GH¢43,112, 147.
“…we wish to humbly appeal to our cherished customers that beneficiaries of the loans who have defaulted should make positive efforts to repay their loans to enable others also benefit from such facilities. Again, in line with IFRS, the bank’s profit shall be eroded significantly by high expected credit loss if loan beneficiaries default.”
She continued that, “…It is worthy of note that the bank has not relented on its efforts to recover all credit facilities and as a result, has sent a number of recalcitrant loan defaulters to court.”
CEO of Odotobiri Rural Bank, Abraham Coffie told LUV BIZ the performance could be attributed to continuous drive to satisfy customers in the midst of global financial difficulties.
Meanwhile, the bank was recognised for its deposit mobilisation drive which saw an increase by 9.17 percent.
“This increase was due to intensified mobilisation efforts by directors, management and staff, coupled with the growing public confidence in the catchment areas in which the bank operates.”
Operating Performance
Below are indications of how the Bank performed in the 2021 operating year as compared to the previous year.
Total deposits increased from 186, 315, 377 cedis in 2020 to 203, 409, 727 cedis in 2021.
Investments increased by 9.68 percent from 125, 544, 478 cedis in 2020 to 137, 694, 073 cedis in 2021.
Advances in 2020 was 39, 699, 398 cedis but increased by 11.5 percent to 44, 265, 527 cedis in 2021.
Odotobri Rural Bank Ltd. recorded a profit of GH¢4,048,153.00 in 2021. The profit was as result of increased revenue generation and putting the Bank’s expenditure under control.
