By Morkporkpor Anku
Accra, July 06, GNA – The La Community Bank Limited’s operating income increased by 4.53 per cent from GH₵8.8 million in 2021 to GH₵9.2 million in 2022, despite the uncertain global recovery from the Covid 19 pandemic.
This was mainly achieved through a review of interest rates on some products within the year.
Mr. Seth Nii Sodjah Quao, the Board Chairman of the Bank, said despite the high inflation within the year, rapid increase in the price of fuel and the general increase in prices, the operating expenditure decreased by 32.07 per cent from GH₵11.6 million in 2021 to GH₵7.9 million in 2022.
Mr Quao was speaking at the 35th Annual General Meeting of the Bank in Accra on Thursday.
This meeting is the first in person meeting post Covid-19 pandemic.
Overall, the Bank recorded profit before tax of GH₵1.3 million in 2022 compared to the loss of GH₵2.7 million in 2021.
He said after consideration of taxes, the profit after tax stood at GH₵1.2 million compared to the loss after tax of GH₵1.9 million in 2021.
The Board Chairman said efforts were still being made to retrieve the locked-up funds to improve shareholders’ worth.
He said during the year under review, Loans and Advances to Customers increased significantly by 102.55 per cent from GH₵3.3 million in 2021 to GH₵6.7million in 2022.
Total deposits declined by 5.96 per cent from GH₵69 million in 2021 to GH₵65 million in 2022 with total assets and equity increased by 2.04 per cent and 46.91 per cent, respectively.
“This is largely due to the profit recorded within the year,” he added.
Mr Quao said the Bank was able to reduce its negative retained earnings from GH₵2.1m in 2021 to negative GHC1.2m in 2022.
He said the negative retained earnings together with the directive from the Bank of Ghana requiring Banks and Special Deposit Institutions to suspend the declaration and payment of dividends does not put the Bank in a position to pay dividends.
He said the Board of Directors was unable to recommend any dividend payment due to the financial position of the Bank for the year 2022.
The Chairman said the Board of Directors remained optimistic about the prospects of the Bank overcoming the effect of Domestic Debt Exchange programme and to correct its negative retained earnings to a positive one in 2023.
He said they would tap into the opportunities in the market to grow a very liquid and viable Bank.
“We will continue to deepen our relationship with our customers and offer them superior customer experience through the right technology, innovative products and services while maintaining our focus on minimizing and diversifying risk, as well as improving productivity and efficiency,” he added.
He encouraged shareholders to increase their stake in the Bank to increase its financing capacity, going into the future.
Mr Quao said Management would continue in its quest to build a resilient bank while keeping an eye on the various risks that affected business.
Mr Curtis William Brantuo, the Deputy Managing Director, ARB Apex Bank, said the La Community Bank was truly showing the way.
He said the Bank was able to post remarkable results within a year which meant that with the right support from Shareholders, Customers, La Community and the right vision from the Board and Management, the bank would post ever better results.
Mr Brantuo said much as the decision to defer dividend payment until further notice was a painful one, it was a good cause as the times were very challenging, because most of the Banks were not making enough profits.
“Let us continue to invest in the Banks, knowing that as soon as the skies are clear and we return to winning ways, dividend payments will resume,” he added.
GNA