Avenor Rural Bank generates GH¢1.9m in income despite harsh conditions

The Avenor Rural Bank Limited in 2014 netted 20.14 per cent growth in total income of GH¢1,924,716 from GH¢1,602,092 in 2013.

The progress happened in spite of what the bank’s directors said was a difficult macro-economic environment, which negatively impacted on the bank’s profit levels.

Its operational expenses grew by 24 per cent from GH¢1.2 million in 2013 to GH¢1.6 million, making a marginal 3.28 per cent profit before Tax of GH¢209,194.00 from GH¢202,550.00 in 2013.

Mr Simon Nerro Davor, Chairman, Board of Directors, announced this while addressing the bank’s 32nd Annual General Meeting at the weekend at Akatsi in the Akatsi South District of the Volta Region.

“Our high operational expenses have affected our profit levels, but we made an appreciable 20 per cent growth in assets from GH¢7.3 million in 2013 to GH¢8.7 million, made mainly from a 27 per cent jump in deposits, from GH¢5.3 million to GH¢6.8 million.

Mr Davor said the bank made 16.41 per cent progression in net advances from GH¢3.9 million to GH¢4.6 million, with share funds growing 27 per cent from GH¢0.8 million to GH¢1.1 million, while registering 22.65 per cent growth in Investments, from GH¢2.1 million to GH¢2.6 million.

He told the meeting that with the Bank of Ghana (BoG) raising the stated capital requirement of Rural and Community Banks (RCBs) to GH¢1.0 million from GH¢150,000.00 currently and the Avenor Bank’s capital level now at GH¢400,000.00, fresh capital needed to be raised to meet the BoG December 2017 deadline.

Mr Davor, commending the chareholders for their hard work, said the bank has been statutory-requirement-compliant, maintaining its social responsibilities and has computerised all agencies including Ho, with Aflao soon to come on.

Mr Kwadwo Aye Kusi, Managing Director, ARB Apex Bank Limited, in a speech rad on his behalf, commended the track record of the bank despite the challenging environment.

He encouraged it to maintain a high compliance environment and be in tune with transformations in ICT, risk management, cost control, effective deposit mobilisation and quality loan book.

Mr Kusi asked RCBs to maintain and reward staff for good customer care and prevent criminals from infiltrating the system.

He said the computerisation of the RCBs, with 137 of them currently on T24e e-Merge Banking Software is to make them multi-channel service providers on the ARC Mobile platform.

A dividend of GH¢48,856.30 was been declared for the year.

Source: GNA