Performance of BUCO bank improves despite COVID-19 pandemic

Photo of the participants at the general meeting
Photo of the participants at the general meeting

Despite the impact of COVID-19 pandemic on the economy and the clean-up exercise that hit the financial sector, the Builsa Community Bank Limited (BUCO Bank) still maintained its resilience and improved on its performance in 2020.

All the operational indicators of the bank showed positive growth and was rated strong by the Efficiency Monitoring Unit and placed fourth out of the 144 Rural and Community Banks in the country, the rankings of the ARB Apex Bank Limited revealed.

Mrs Akanbangbiem Agamu Asokea, the Board Chairman of the Bank, who said this at the 21th Annual General Meeting of the bank held at Sandema, the Builsa North Municipality

of the Upper East Region attributed the performance to prudent liquidity management by the Board and Management of the bank, who introduced effective cost reduction strategy and enhanced operational efficiency to counter the shortfalls.

Mrs Asokea said aside the COVID-19 pandemic, the banking clean-up exercise saw an amount of GHS 4.8 million of the Bank locked up at Gold Coast Fund Management limited, but there was significant positive growth recorded.

She said despite the challenges, the bank recorded a stated capital of GHS 1.6 million at the end of 2020, which exceeded the GHS 1 million set for the rural and community banks by the Bank of Ghana.

At the same time, the total deposits of the bank increased from GHS27.7 million in 2019 to GHS35.2 million in 2020, representing 26.9 per cent, its total assets also increased from GHS 36 million in 2019 to GHS46.2 million in 2020, representing 28.52 per cent, she added.

She said the short-term investments of the bank also increased from GHS12.7 million to GHS 18 million, representing 41.08 per cent, while the Net Worth shot up to GHS 4.4 million from GHS3.6 million, representing 23.39 per cent.

Loans and Advances, and Pre-Tax Profits saw marginal improvements from GHS16.5 million to GHS16.6 million, representing 0.67 per cent and from GHS921, 748.00 to GHS966,239.00, representing 4.83 per cent respectively.

In terms of corporate social responsibility, Mrs Asokea revealed that the bank spent GHS35, 191.00 on education, agriculture, healthcare, culture, sports and environment in all its operational areas.

Mrs Asokea said the board and management of the bank would continue to churn out strategies that would make the bank grow, protect depositors’ funds and maximize shareholder value.

“The Bank will also continue to invest in the productive sector of the local economy to improve on the livelihoods of our people.

“We shall continue to participate and support government flagship programmes such as; planting for Food and Jobs, Livelihood Empowerment Against Poverty, Ghana Productive Safety Net Project and the Biometric System in the years ahead,” she added.

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