Business News of 2013-12-05

Nkoranza-Kwabre Rural Bank improves on performance

The Efficiency and Monitoring Unit of Association of Rural Banks, Apex Bank has upgraded Nkoranza-Kwabre Rural Bank from Fair to Satisfactory Category following improvement in its operations.

The bank’s profit before tax increased from GHC21,871 at the end of 2011 to GHC63,650 as at the end of 2012 representing 200.82 per cent.

Mr Mark Odoi Adjei, Manager ARB Apex Bank-Sunyani Branch announced this at the 28th Annual General Meeting of the Bank at Akuma in the Nkoranza Municipality. He stressed the need for the Board of Directors to intensify their share capital mobilization drive by floating new shares and rights issues to increase their stated capital.

Mr Adjei urged the management to evolve strategies to identify, assess, monitor and control operational and credit risk to strengthen their internal control systems and add value to their operations for enhanced performance.

He said the ARB Apex Bank had signed an agreement with a service provider for the deployment of the Arch- a mobile product, a computerized platform which used mobile phones to transact business to customers.

Mr Joseph Tachie-Djan, Chairman of the Board of Directors of the bank commended the shareholders and customers for keeping faith with the bank during challenges and offering the needed support for a firm foundation for its development. He said the bank’s total deposit increased from GHC2,546,344 to GHC3,277,970 whilst ordinary shares increased from GHC112,021 to GHC159,691.

Mr Tachie-Djan said the granted loans and advances amounting to GHC1,872,406 within the year as against GHC1,549,782 in 2011. The total assets of the bank is GHC3,880,663 with total investment by 2012 as GHC665,574.

He appealed to the shareholders to increase their shares to strengthen the capital base to meet any requirements and proposals from the Bank of Ghana. Mr Kofi Bonsu Boakye-Boateng, President of Brong-Ahafo Chapter of Association of Rural Banks, expressed appreciation to the efforts of the shareholders to pool resources together to establish more rural banks in the communities.

He recommended the Board and management of the bank for initiating effective strategies to improve performance to be ranked among the performing community banks in the country.