Business News of 2014-08-02

Ga Rural Bank sees impressive growth

The Ga Rural Bank has posted a profit after tax of GH¢450,252 for the 2013 operational year, representing a 31.13 percent growth over the previous year’s profit of GH¢343,376.
The bank’s total income grew by more than half of the 2012 figure, soaring to GH¢4.32million from GH¢2.88million while its total expenses saw a 59 percent surge from GH¢2.04million to GH¢3.71million, due largely to increases in operational and staff costs.
Total advances registered a record high of GH¢8million from GH¢5million while shareholders’ funds appreciated from GH¢1.75million to GH¢2.46million, a growth of 40.7 percent.
The board declared GH¢168,222.81to be paid as dividend to shareholders, which is a 40 percent increase from last year.
Board chairman Nana Bram Okae II, who gave out the figures at the bank’s 22nd annual general meeting in Accra, said the bank would have shown a higher performance but for significant provisions made for impairment losses on advances and depreciation.
He said management will intensify efforts at debt recovery to force debtors to pay up their loans. He called on shareholders to buy more shares to increase the capital base and support the bank’s expansion drive.
Nana Okae II said there was an increase of about 92 percent in the bank’s stated capital due to institutional investments -- an occurrence he said is a testament to investors’ and shareholders’ renewed confidence in the bank.
He said the bank will not rest on its oars but continue to expand its operations to the unbanked, as well as support socio-economic development activities within its catchment area.
“We have already succeeded in securing a GH¢1million facility from the Outgrower Value Chain Fund (OVCF) from the Bank of Ghana to support pineapple farmers in the Samsam-Odumase area and we will be connecting them to a processing technical operator that produces fruit-juice for both local and international markets.
“We have also taken some steps in our effort to reach out to clients as well as attract new customers. We intend to open a microfinance office at Pokuase and explore the possibilities of establishing a branch at Ablekuma in the course of the year.
“The bank has brighter prospects and high growth potential looking ahead; we therefore encourage shareholders to purchase more shares so they can reap the benefits,” he said.
The bank continued to offer assistance to communities and institutions within its operational area, spending GH¢22,580 on corporate social responsibility.
Ten Senior High/Technical School students were awarded educational scholarships by the bank, bringing the total number of recipients of the scholarship to 122 since its inception 17 years ago.
General Manager Samuel Larkai said management, going forward, will continue to maximise profits while giving exceptional share value and satisfaction to investors and shareholders.
Source: B&FT
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