Page 12 - Agib Bank Limited Annual Report 2021
P. 12
Financial Statements and Annual Report
Chairman’s Statement Continued
Assalamualaikum.
Distinguished Shareholders, Ladies and The Gambia Economic
Gentlemen, On behalf of the Board of Directors,
nd
I am delighted to welcome you to the 22 Annual The Gambian economy is forecast to rebound in
General Meeting of your bank Agib Bank Ltd 2021 aided by the policy measures adopted to
being held virtually once again due to the mitigate the effects of the virus and subsequent
continuous fear against Covid-19. I have the relaxation of the pandemic measures. The IMF
honour of presenting the highlights of the bank's projected growth at 4.9% in 2021 and 6.5 in
operating performance for the year ended 2022, up from a contraction of 0.2% in 2020,
December 31, 2021 as well as an overview of premised on ease in Covid-19 restrictions and
the major developments that impacted the rebound in tourism.
international and domestic environments in
which your bank operated in 2021.
Headline inflation rose to 7.6% in December
2021 from 5.6% in December 2020. The
Global Economic Development increase in food prices is due to increase in
annual food inflation resulting from cost push
Global developments are adversely impacting effects of the structural bottlenecks at the port.
on the global recovery as evidenced in the The exchange rate of the Dalasi remained stable
weaker than expected growth. Global growth is and resilient in 2021 supported by sustained
remittance inflows. In the twelve months ending
forecast to be slower than previously projected December 2021, the Dalasi depreciated against
the US Dollar and Pound Sterling by 3.3% and
on the backdrop of the outbreak and spread of
0.2%, respectively while appreciating against the
the Omicron variant, continued supply chain Euro by 2.3%
disruptions, increasing energy prices, and the
imminent commencement of monetary policy
Banking Sector
normalization by some major central banks.
The financial sector remains fundamentally
sound, robust and well capitalized, highly liquid,
The International Monetary Fund (IMF) forecast very profitable and lower single digit non-
performing loan ratio. The risk weighted capital
global growth at 4.4% for 2021 down from 5.9% adequacy ratio for the industry declined to 26.6%
predicted earlier in October 2021. The revision in 2021 from 32.6% in 2020. Total assets of the
industry increased to D73.06 billion to
mainly reflects the slower-than-expected D58.82billion in the same period a year ago
momentum in advanced economies due to owing to increases in balances due from other
banks, investments and loans and advances.
supply disruptions and worsening pandemic Non-performing loans ratio decreased by 1.2%
to 5.2% as at end December 2021. Liquidity ratio
dynamics. The downgrades are partially offset
averaged dropped slightly to 92.0% in December
by the stronger near-term prospects among 2021 from 93.5% a year ago.
some commodity-exporting emerging markets
Bank Performance
and developing economies. Despite global The Board and Management of the bank are
pleased to inform you that your bank despite the
growth prospects, risks to the outlook remained challenges posed by global and domestic
as uncertainties surrounding the efficacy Covid- macroeconomic context, performed well in 2021
compared to 2020. Revenue grew by 46.5% Annual Report and IFRS Financial Statements
19 vaccines on the emerging variants persist from D200.9million to 294.4million. Profit before
tax increased by 46.65% to D86.7 million in
and, unequal access to vaccines and vaccine
2021 from D59.1 million in 2020. Islamic finance
hesitancy has left many people vulnerable. and related assets have also increased by 88%
Agib Bank Annual Report 2021 www.agib.gm 12
