KWAHU EAST : Kwahu Rural Bank mobilizes GHC 5.9 million deposits last year
The Kwahu Rural Bank mobilized GHC 5.9 million deposits last year as against GHC 3.5 million in 2009.
The figure represents 68.57 per cent increase, and total assets rose from GHC 5 million two years ago to GHC 7.8 million last year, an increase of 5.6 per cent.
The Chairman of the Board of Directors of the Bank, Mr. Samuel Nkansah-Boadi, said these at the 29th Annual General Meeting of the bank at Pepease.
He said the bank net worth recorded a 12 per cent increase thus from GHC 130,944 in 2009 to GHC 1,267,668 in the year under review.
Mr Nkansah-Boadi said the bank granted loan of GHC 2,079,758 to its customers in agriculture, commerce, cottage industry and transport sectors and workers.
He said the bank made a net profit after tax of GHC 160,179 last year as against GHC 2,048,177 in 2009, representing a decline of 35.46 per cent.
Mr Nkansah-Boadi attributed the situation to the global economic recess and decline in interest rate on treasury bills.
He said the bank spent GHC 26,540 on the payment of dividend of GHC 0.0010 per share to its shareholders.
Mr Nkansah-Boadi said the share capital of the bank increased from GHC 203,828 in 2009 to GHC 206,913 in the year under review, representing an increase of 1.5 per cent.
He appealed to the shareholders to purchase more shares since there was anticipation that the Bank of Ghana would review the share capital of rural and community banks in the country in the near future.
Mr Nkansah-Boadi said with improved performance of the bank, the Ghana Investment Promotion Council had made the Kwahu Rural Bank a member of the Club 100.
The West Africa Internal Magazine also selected the bank as the leading resourceful rural bank in West Africa and had been presented with a trophy and a citation.
In an address read on his behalf, the Managing Director of the ARB Apex Bank, Mr. Eric Osei-Bonsu, commended the Kwahu Rural Bank for its improved performances in the Eastern Region and being sixth best out of 134 rural banks in the country.
He advised rural and community banks to develop and create a unique marketing system to strengthen their bank microfinance business.
Mr Osei-Bonsu said that microfinance program had high recovery rates as compared to traditional retail banking and also reduce the high incidence of default payment.
He said banking business had become very competitive and risky with the current base of development in Information and Communication Technology.
Mr Osei-Bonsu, therefore, called for effective risk management policy to identify, assess, monitor and control operational and credit risk.