Atiwa Rural Bank records 600 percent profit in 2012
The Atiwa Rural bank at Akyem Kwabeng last year recorded a profit before tax of GH¢ 222,125 as against GH¢31,189 recorded in 2011, representing a significant growth of over 600 percent.
The bank’s total assets increased by 20 percent from GH¢ 8.3 million in 2011 to GH¢ 9.9 million last year.
Professor Samuel Obeng Apori, the Chairman of the Board of Directors, announced this at the 25th Annual General Meeting (AGM) of the bank at Kwabeng in the Atiwa District on Saturday.
He said the greater increase occurred in loans and advances which increased by about 63 percent from GH¢ 2.7 million to GH¢ 4.4 million.
Professor Apori said short term investments also increased by 27 percent from GH¢ 2.2 million in the previous year to GH¢ 2.8 million in the year under review adding the “year-end statistic indicated about 20 percent increase in deposit levels compared to the previous year”.
He said interest income improved by about 45 percent to GH¢ 1.6 million from the previous GH¢ 1.10 million.
Professor Apori appealed to the Bank of Ghana, the Ministry of Finance and Economic Planning and the Government not to impose harsh capital conditions on Rural Banks.
“The expected increase in Stated Capital for Rural/Community Banks should therefore be done in a manner that does not threaten the existence of Rural Banks and compel them to undertake mergers and acquisitions that may have the potential of defeating the aims and objectives of the Rural Banks in the first place”.
The bank recommended the payment of a dividend of GH ¢0.01 per shares for the year.
Mr Kwadwo Ayeh Kusi, Managing Director of the ARB Apex Bank in a speech read on his behalf, congratulated the Board, management, staff and shareholders of the bank for their highly commendable performance for the year 2012 as depicted by their financial indicators.
He said the bank was rated satisfactory based on the fourth quarter of 2012 report of the Efficiency Monitoring Unit of the Apex Bank.
Mr Kusi, however, urged the Board to endeavour to step up its corporate social responsibilities to the community in diverse ways in order to meet one of the key objectives for which rural banks were established.
He advised the bank to put in pragmatic and realistic programmes and policies to sustain and consolidate their operations.
Mr Kusi said some of the policies included Risk Management, Staff Training, and Product Development and Customer Service among others.
He disclosed that the management of the ARB Apex Bank had reduced the interest rate on its borrowing to the Rural and Community Banks from the 20 percent and above to 16 percent to equal the Bank of Ghana current policy rate.
“All Rural and Community Banks are urged to take advantage of this development and access more facilities from the Apex Bank for on-lending to their deserving borrowers”
Source: GNA