Page 15 - Agib Bank Ltd Annual Report and IFRS Financial statements 2020

Chairman’s Statement

Assalamualaikum.

Distinguished Shareholders, Ladies and Gentlemen, On behalf of
the Board of Directors, I am delighted to welcome you to the Annual
General Meeting of your bank Agib Bank Ltd being held virtually due to
circumstances beyond our control i.e. the Covid-19 pandemic. I have the
honour of presenting the highlights of the bank’s operating performance
for the year ended December 31, 2020 as well as an overview of the
major developments that impacted the international and domestic
environments in which your bank operated in 2020.

GLOBAL ECONOMIC DEVELOPMENT

Global economic growth is forecast to pick up in 2021 amid uncertainties surrounding the Covid-19 pandemic.
In the advanced economies, contraction in output in 2020 was revised to 4.9% from a 5.8%. The revision
reflects the impact of expansionary policy measures adopted to moderate the effects of the pandemic as well
as the envisaged availability and rollout of vaccines.

Economic performance of emerging markets and developing Economies, including sub-Saharan Africa are
forecast to rebound to 6.3% and 3.2%, respectively in 2021 from a projected contraction of 2.4% and 2.6%
in 2020.

THE DOMESTIC ECONOMY

The Gambian economy is projected with zero economic growth compared to an earlier estimated contraction
of 1.8%, reflecting fiscal stimulus, relaxation of the restrictions and increase in agricultural production
according to IMF data.

The Central Bank’s Composite Index of Economic Activity (CIEA), which is a statistical measure of aggregate
economic activity, revealed year-on-year contraction of economic activity by 4.6% in 2020. However, signs of
recovery are beginning to show in quarter 4 of 2020 and the forecast horizon, due to eased restrictions and
resumption of business activities in the last quarter of 2020.

BANKING SECTOR

The banking sector remains fundamentally sound, well capitalized, liquid and very profitable. The risk weighted
capital adequacy ratio for the industry averaged 32.6% higher than the statutory requirement of 10%, increased
by 1.2% points in December 2020.Total assets of the sector increased by 3.5% to D58.8billion in December.
Non-performing loans ratio increased to 6.8% compared to 4.6% a year ago. Liquidity ratio averaged 94.4%
in December 2020 well above the statutory required of 30%. This is 2.8% higher than the 2019 ratio.

Annual Report and IFRS Financial Statements for the year ended 31 December 2020 14