Mponua Rural Bank increases deposits
Mponua Rural Bank Limited at Amuana Praso in the Eastern Region increased its total deposits of GH¢9.55 million in 2014 to GH¢12.38 million at the end of 2015.
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This is as a result of the efforts made by the Recovery and the Mobilisation Team of the bank in expanding its operations and intensifying the sale deposit products, as well as financial literacy campaign at market centres and communities.
The Board Chairman of the bank, Mr George Osei Ameyaw, announced this at the 22nd annual general meeting of the bank at Amuana Praso in the Eastern Region. Still on deposits mobilisation, Mr Osei Ameyaw disclosed that the bank took the opportunity to increase its deposits due to the unbanked population within the bank operational area.
Investment in government treasury bills and other related investment increased by 41.46 per cent from GH¢5.65 million to GH¢8.0 million as at the end of 2015. The levels, according to Mr Osei Ameyaw, maintained in the year were in excess of the prescribed minimum secondary reverse requirement of 30 per cent and growth was in tune with the increase in deposits.
Touching on the lending operations of the bank, he revealed that the loans and overdraft facilities to be disbursed was to the tune of GH¢5.97 million in the year 2015 as against the GH¢4.51 million recorded in 2014, showing a significant increase of 32 per cent.
He indicated that the areas that were benefiting from lending facilities were salaried workers, trading and agriculture.
Loan defaults
“Management intensified the recovery of credits and this paid off as credits portfolio outstanding increased marginally from 2014 level of GH¢3.56 million to GH¢4.15 million in 2015 while credits impairment loss declined unusually from the 2014 level of GH¢274, 717 to 268,605 in 2015. This indicates an improved loan asset quality,” he added.
On profits, Mr Osei Ameyaw said the bank recorded a net profit of GH¢604,586.00 which showed a growth of 58.56 per cent over the level of GH¢381,296.00 achieved in 2014. The attainment of increasing profit, according to him, was due to the bank’s dedicated customers, loyal and efficient staff, appropriate capacity building, effective cost and risk management, appropriate investment decision, strong internal control, dedicated and reliable customer service relationship and healthy collaboration among the board, management and staff of the bank.
On stated capital and shareholders fund, he said for rural and community banks to operate effectively the Bank of Ghana had prescribed an amount of GH¢1,000.000.00 payable by the end of 2017.
On dividend, the board chairman stated that the bank had recommended a cash dividend payment of GH¢0.0178 per share, representing a total payout GH¢90,688.00 for the 2015 financial year.
He appealed to shareholders to allow the board to convert the cash payment to bonus shares to enable the bank to meet the prescribed levels at the stipulated time frame.
Products
Emphasising products and services, he said the bank was poised towards rebranding and intensifying the marketing of deposits and credit product and further positioning itself strongly in offering both domestic and foreign funds transfer services which include online cheque clearing, ACH credit transfer, ACH Debit Transfer, E-Swish, payment order and financial literacy campaign.
On behalf of the management of the bank, Mr Osei Ameyaw promised to continue to approach the environment in which the bank operates with caution and also focus on the transformational strategies that would place the bank in its rightful place to be able to operate more efficiently within the challenges facing the Ghanaian economy.
The Managing Director of the ARB Apex Bank Limited, Mr Kwadwo Aye Susi, in a speech read on his behalf commended the bank for its performance and urged management and staff to continue to work hard to make it the best in the country.