Nkrankwanta Area Rural Bank makes profit
The Nkrankwanta Area Rural Bank Limited in the Dormaa West District, Brong Ahafo Region, recorded a profit before tax of GH¢63,566.00 in 2012, as against GH¢60,215.00 in 2011, representing a marginal increase of six per cent.
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The bank also increased its deposits by 65 per cent, from GH¢1, 314,035.00 in 2011 to GH¢2,162,051.00 last year and this was due to the mobilisation strategy adopted by the bank.
Despite the bank's success in deposit mobilisation, its profit did not grow as expected due to low rate for treasury bills, increased computerisation cost and the poor performance of the special Akuafo Cheque system.
However, the board of directors of the bank recommended a bonus of two shares for every 10 shares at no cost to increase the shares of shareholders as compensation of non-payment of dividend.
Mr Kwaku Agyeman Manu, the Member of Parliament ( MP) for Dormaa Central and a board member of the bank, announced this in a report he read on behalf of Mr Emmanuel Joseph Akomian, Chairman of the Board of Directors, at the fourth annual general meeting (AGM) of the bank at Nkrankwanta, over the weekend.
The total assets of the bank increased from GH¢1, 633,792.00 in 2011 to GH¢2,742,167.00 in 2012, an increase of 68 per cent, while the bank's net worth increased from GH¢273,430.00 in 2011 to GH¢365,085.00 in 2012, which represents 34 per cent increase.
Mr Akomian said investments increased by 67 per cent from GH¢850,000.00 in 2011 to GH¢1,420.000.00 in 2012.
"The total outstanding loans and overdrafts granted to all sectors within our catchment area, including trade, agriculture, education, funeral and salary loans increased from GH¢452,260.00 in 2011 to GH¢750,589.00 in 2012; an increase of 66 per cent," he said.
Mr Akomian stated that the bank's share capital rose from GH¢151,112.00 in 2011 to GH¢179,201.00 in the year 2012.
"I wish to congratulate you on your efforts to subscribe for more shares and encourage you to redouble your efforts since the minimum capital requirement of rural and community banks (RCBs) may be reviewed upwards by the Bank of Ghana (BOG) soon. I also wish to reiterate that the bank can only sustain and continue to improve its performance through expansion of its capital base,” he said.
Mr Akomian said as a young bank, it had not done much in terms of its commitment to social responsibilities. however, the bank was able to donate a quantity of wood and nails for the roofing of the Nkrankwanta Presbyterian Kindergarten (KG), which is being constructed by the community and a citizen of the area and his friends who live in Italy.
He also said the bank had chalked up some successes within its few years of operations, indicating, among other things, that the bank was ranked among the first 34 in the country, out of 133 and placed fourth out of the 20 rural banks in Brong Ahafo Region, by ARB Apex Bank's Efficiency and Monitoring Unit (EMU) Report for the first quarter of 2013.
By Samuel Duodu/Daily Graphic/Ghana