Mepe Area Rural Bank Limited Increases Profit by 121.94%, Supports Flood Victims and Education

Arguably, banks engage in Corporate Social Responsibility (CSR) initiatives to contribute positively and sustainably to society and the environment. Even that, a certain unique purpose drives every bank to engage in CSR ventures.

In the case of Mepe Area Rural Bank Limited, its main purpose is to use part of its profit to give back to the communities in which it operates, support sustainable practices and also address social issues such as poverty, education and environmental conservation. This is exactly what the Bank had done in 2023 and same reported to the shareholders at their just ended Annual General Meeting (AGM).

Incorporated in 1989, issued a certificate to commence business in August 1991 and later operationalized on 16^th October, 1991 with a humble seed capital of about GH¢50.00, Mepe Area Rural Bank Limited (MARBL) is now a giant seed and it currently operates two branches at Mepe and Sogakope that serve the nearby communities. MARBL is one of the top ten (10) rural banks in Ghana today. It has, therefore, been nicknamed as the miracle bank. In all, the Bank spent about GH¢70,203 on CSR activities in 2023.

Profit –After- Tax Declared
Commendably, the Board Chairman of the Bank, Mr. Richard A. Ladjagla reported inter alia at the just ended 32^nd shareholders’ AGM that Mepe Area Rural Bank Limited made profit after tax in 2023 to the tune of GH¢1,199,712.00 and this was a 121.94% increase of the 2022 profit- after- tax figure of GH¢540,539.00. This performance of the Bank is commendable especially mindful of the flooding of the area that occurred last year due to the spillage of huge volumes of water from the Akosombo and Kpong Dams. The Bank building itself was almost affected by the flood waters.

The Board Chairman further reported that the Bank’s balance sheet remained strong with a 46.39% increase in total assets from GH¢15,863,755 recorded in 2022 to GH¢23,224,311. Fortunately, strong growth strategies the Board put in place and effectively adhered to by the Management and staff of the Bank led to this miraculous performance even in a year of significant adversity.

Mr. Ladjagla also disclosed to the shareholders with joy that deposits from customers improved remarkably at the rate of 48.17% over the 2022 figure. He added that as at December 2023, the Bank received a total deposit of GH¢17,625,501. He assured the shareholders that the committed strategies in place are expected to attract more deposits in future and hoped ardently that the shareholders themselves and customers will continue to entrust the Bank with their deposits and other transactions.

Support for Business Growth and Capital Adequacy Ratio

It was all joy for the shareholders when the Board Chairman told the 32^nd AGM that despite the economic challenges nationwide, the Bank continues to support business growth by increased lending to micro and small businesses, as evidenced by the Bank’s net loan book of GH¢5,212,153 as against GH¢3,059,343 in 2022 and this represents 70.36% increment.

Mepe Area Rural Bank Limited ended 2023 with a Capital Adequacy Ratio (CAR) of 44.89% which was well above the Bank of Ghana’s regulatory minimum level of 10%, reflecting the Bank’s healthy capital position. Basically, Capital Adequacy Ratio (CAR) refers to a measure of how much capital a bank has available and reports as a percentage of its risk-weighted credit exposures. The essence of CAR is to establish that banks have enough capital, funds or resources on reserve to handle a given amount of losses, and pre-empt insolvency.

Gratitude for the Bank Staff
It is trite assertion that every organization’s most valuable resource is its human resource hence, the Board Chairman (Mr. Richard A. Ladjagla) expressed a profound gratitude to the workers whose hard work led to the sterling performance of the Bank. He added blissfully that due to various motivation packages made available to staff and close monitoring interventions put in place by the Board and Management, the Bank recorded no defalcations in 2023. He commended all staff as well as other Board members such as Mr. Francis Nudevu, Dumegah Torgbe Korsi Glah IV, Mrs. Rita Glah-Kwashie, Mr. Geoffrey Kwao Doh, Mr. Michael Kwame Tornyi and Philip Afeti Korto, not forgetting the CEO of the Bank, Mr. Hyeaman Osei who is ultimately responsible for the day-to-day running of the Bank.

Dividend Payment
Perhaps the most exciting piece of information for the shareholders of Mepe Area Rural Bank Limited (MARBL) at the just ended 32^nd AGM was the Board’s disclosure that subject to an approval secured from Bank of Ghana, MARBL would pay a dividend of GH¢0.32 (32 pesewas) per share to each shareholder who qualified as at 31^st December, 2023. In 2022, the dividend approved for payment was 11 pesewas (GH¢0.11) per share.

Corporate Social Responsibility Interventions

Perhaps mindful of Barabara Achie Carrol’s dimensions of Corporate Social Responsibility (CSR) such as Philanthropic, Economic, Environmental and Legal (PEEL) dimensions, the Board and Managers of Mepe Area Rural Bank (MARBL) have consciously engaged in CSR activities for the ultimate benefit of members of the communities the Bank serves.

The Board Chairman in his address to the 32^nd shareholders’ AGM of the Bank admitted that water spillage from the Akosombo and Kpong Dams in 2023 with its resultant flooding of Mepe and its environs had significant cascading effects on the Bank’s operational areas and affected both customers and staff.

Despite the foregoing and other challenges encountered last year, Mepe Area Rural Bank Limited undertook the following philanthropic CSR ventures.

1. Support for a Technical and Vocational Education Training (TVET) Centre under construction at Mepe -Dadome.
2. Donation of assorted items such as sachet water, bags of rice and gari to flood victims of Mepe through the Mepe Traditional Council and Mepe Development Association.
3. Renovation of the boys’ dormitory toilet facility of Mepe St. Kizito SHTS that served as a safe haven for some of the flood victims.

Awards

Fortunately, the challenges it encountered last year did not prevent the Bank from being recognized with some awards. In recognition of its sterling performance, therefore, the Bank secured the 62^nd position during the 20^th edition of Ghana Club 100 Awards in 2023.

Earlier in 2022, the Association of Rural Banks (Ghana) adjudged Mepe Area Rural Bank Limited as the Most Compliant Rural Community Bank in Ghana.

One may say with a significant margin of certainty that these awards are overt testaments of hard work, dedication, commitment to chosen strategy and a demonstration of unity of purpose between the Board and Management of the Bank.

The good results and the awards received by the Bank also demonstrate strong leadership and a result-oriented spirit of the shareholders, Directors, Management, and employees of the “Miracle Rural Bank of Mepe”. To me, this is a resilient rural financial institution worth doing business with. It is also a bank that cares about the plights of its communities and serves them through sustainable CSR interventions. ~Asante Sana~

Philip Afeti Korto
Hospital Administrator
[email protected]