Nzema Manle Rural Bank makes marginal profit
The Nzema Manle Rural Bank in the Ellembelle District in the Western Region recorded a profit before tax of GH¢622,600 in 2014, compared with GH¢592, 370 made the previous year.
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This represents a marginal rise of 5.10 per cent.
The feat, according to the bank, was attained in spite of some challenges, including the economic situation in the country, infiltration into the operational area of the bank by other financial institutions and the energy crisis, which persistently affected productivity in general.
Consequently, the Board of Directors, at the 33rd annual general meeting (AGM) held this year, recommended a dividend payment of GH¢0.09 per share, totalling GH¢69,094, to be paid to shareholders this year.
The shareholders accepted a ‘Right Issue’ by allowing the board to convert the payment of dividends of GH¢0.05 per share, which summed up to GH¢181,223, to help the bank to meet its stated capital requirement as requested by the Bank of Ghana (BoG).
The Chairman of the Board of Directors, Mr Emmanuel Yankson Kwofie, disclosed this at the AGM at Awiabo, near Nkroful, and explained that the move by the bank had enabled its stated capital to shoot up from GH¢276,117 to GH¢469,427 as of December 31, 2014.
Total assets/loans & advances
Mr Kwofie said the bank’s total assets grew from GH¢12 million to GH¢14.5 million, representing 21.02 per cent, during the year under review, adding that in spite of the hectic times that engulfed the bank, deposits went up from GH¢9,192,847 in 2013 to GH¢11,440,517 in 2014, representing 24.5 per cent.
He said the bank’s total income amounted to GH¢3.5 million in 2014 as against GH¢3 million in 2013, representing an increase of 16.33 per cent.
Operating cost, which went up by 16.72 per cent, amounted to GH¢2,230,537 in 2014 while that of the previous year was GH¢1,910,949.
The board chairman, however, disclosed that loans and advances granted to customers decreased from GH¢4.3 million in 2013 to GH¢4.2 million in 2014, which represented a negative variance of one per cent.
He noted that the servicing of loans by customers on schedule continued to be a setback to the bank and added that in the year under review, the board decided to give more loans and advances to salaried workers who were customers of the bank, more than businessmen, because of the high loans default.
Way forward
The Supervising Manager of the bank, Mr Thomas Quayson, said because the oil industry was at the doorstep of the bank, there was the need to strengthen its capital base to sustain its growth.
The Manager of ARB Apex Bank Limited, Takoradi Branch, Mr Samuel Kofi Osei, who represented the Managing Director of the ARB, Mr Kwadwo Aye Kusi, urged all rural and community banks (RCBs) to clearly identify the risks associated with their operational activities and develop appropriate controls to deal with them.
